FAST Reorganizes Company

Aug 21, 2007

Fast Search & Transfer has conducted a thorough internal review of its operations, resulting in a realignment plan to resume sustained profitable growth, including adjusting its cost structure in line with current expected levels of revenue. As part of the plan, FAST will reduce operating expenses by more than $12 million per quarter by consolidating its product portfolio within its search technology platform, FAST ESP. Furthermore, FAST will focus on replicable value propositions within its core markets: media & entertainment, communications, financial services, and government. In particular, there will be increased efforts in value-added, search-based monetization opportunities.

The realignment plan includes rationalization of group spending worldwide, and a reduction in staff of 148 people. The company expects to take a charge of up to $55 million to cover restructuring charges, provisions, and investments. The cash portion of this is expected to be approximately $25 million, which includes employee severance charges, investment in operational and financial systems, and other realignment costs.