BRAMPTON, ON, Jan. 31, 2017 /CNW/ - DATA Communications
Management Corp. (TSX: DCM) ("DATA" or the "Company") announced
today the completion of a process realignment of its operations,
which will result in an estimated $2.4
million in cost savings in 2017. In connection with these
improvements, DATA expects to incur a total of approximately
$1.0 million in severance
expenses.
This restructuring primarily involves a reduction of in-direct
labour across the company, designed to streamline DATA's
order-to-production process. This process automation is
expected to improve manufacturing processes from DATA's on-line
web-to-print ordering system, directly to digital production.
"We began to implement necessary transformational changes in our
operations in 2013," said Alan
Roberts, Senior Vice-President, Operations. "These announced
changes position DATA to become more agile and build a
best-in-class process."
"This year, we are focussed on reversing the trend in revenue
declines," said Michael Sifton, CEO.
"We have completed the right-sizing of our operations to improve
process and have shed our non-performing lines of business. We are
now concentrating our efforts on growing our business organically
and through strategic acquisitions."
About DATA Communications Management Corp.
At DATA, we
are experts at planning and driving business communications. We
help marketers and agencies unify and execute communications
campaigns across multiple channels, and we help operations teams
streamline and automate document and communications management
processes. Our core capabilities include direct marketing, print
services, labels and asset tracking, event tickets and gift cards,
logistics and fulfilment, content and workflow management, data
management and analytics, and regulatory communications. We serve
clients in key vertical markets such as financial services, retail,
healthcare, lottery and gaming, not-for-profit, and energy. We are
strategically located across Canada to support clients on a national basis,
and serve the U.S. market through our facilities in Chicago, Illinois.
Additional information relating to DATA Communications
Management Corp. is available on www.datacm.com, and in the
disclosure documents filed by DATA Communications Management Corp.
on the System for Electronic Document Analysis and Retrieval
(SEDAR) at www.sedar.com.
FORWARD-LOOKING STATEMENTS
Certain statements in this
press release constitute "forward-looking" statements that involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance, objectives or achievements
of DATA, or industry results, to be materially different from any
future results, performance, objectives or achievements expressed
or implied by such forward-looking statements. When used in this
press release, words such as "may", "would", "could", "will",
"expect", "anticipate", "estimate", "believe", "intend", "plan",
and other similar expressions are intended to identify
forward-looking statements. These statements reflect DATA's current
views regarding future events and operating performance, are based
on information currently available to DATA, and speak only as of
the date of this press release. These forward-looking statements
involve a number of risks, uncertainties and assumptions and should
not be read as guarantees of future performance or results, and
will not necessarily be accurate indications of whether or not such
performance or results will be achieved. Many factors could cause
the actual results, performance, objectives or achievements of DATA
to be materially different from any future results, performance,
objectives or achievements that may be expressed or implied by such
forward-looking statements. The principal factors, assumptions and
risks that DATA made or took into account in the preparation of
these forward-looking statements include: the limited growth in the
traditional printing industry and the potential for further
declines in sales of DATA's printed business documents relative to
historical sales levels for those products; the risk that changes
in the mix of products and services sold by DATA which are related
to reduced demand for its printed products will adversely affect
DATA's financial results; the risk that DATA may not be successful
in reducing the size of its legacy print business, reducing costs,
reducing its long-term debt, repaying or refinancing its
outstanding 6.00% convertible unsecured subordinated debentures,
and growing its digital communications business; the risk that DATA
may not be successful in managing its organic growth, or
implementing its restructuring activities within expected
timeframes and related cost estimates; DATA's ability to invest in,
develop and successfully market new digital and other products and
services; competition from competitors supplying similar products
and services, some of whom have greater economic resources than
DATA and are well-established suppliers; DATA's ability to grow its
sales or even maintain historical levels of its sales of printed
business documents; the impact of economic conditions on DATA's
businesses; risks associated with acquisitions by DATA; increases
in the costs of paper and other raw materials used by DATA; and
DATA's ability to maintain relationships with its customers.
Additional factors are discussed elsewhere in this press release
and under the headings "Risk Factors" and "Risks and Uncertainties"
in DATA's management's discussion and analysis and in DATA's other
publicly available disclosure documents, as filed by DATA on SEDAR
(www.sedar.com). Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking statements prove incorrect, actual results may vary
materially from those described in this press release as intended,
planned, anticipated, believed, estimated or expected. Unless
required by applicable securities law, DATA does not intend and
does not assume any obligation to update these forward-looking
statements.
SOURCE DATA Communications Management Corp.