MORGAN HILL, Calif., Aug. 13, 2001 (PRIMEZONE) -- Cidco, Inc. (Nasdaq:CDCO) today announced it has entered an agreement to outsource its call center operations for e-mail customer support to Calling Solutions, Inc., a San Antonio-based provider of customer support services. The agreement, effective at the end of August, will result in improved service for customers and significantly reduced expenses, said Cidco officials.
"Outsourcing these operations will immediately accomplish three key objectives," said Rick Kent, chief operating officer and chief financial officer. "First, it will result in a savings of approximately 25% of the costs of operating our call center, and that will make a significant dent in operating expenses. Secondly, it will improve response time and overall customer service by bringing scalability to the call center operation. This will be especially important as we intensify our product launches and holiday promotions for the Mivo series of e-mail appliances this fall. The 24-hour, 7-day service provided by Calling Solutions will also be a vital component in our customer service mix. Third, outsourcing these operations accomplishes our objective of reducing fixed overhead costs. Our agreement with Calling Solutions in effect converts the Call Center operation to a variable cost basis."
Kent said a small management and support staff will be retained for the call center operations. "We think the Calling Solutions alternative will provide the best of both worlds," said Kent. "It will increase the level of customer support and assist us in reaching profitability on schedule."
Calling Solutions, Inc. provides inbound and outbound telemarketing services through three centers located in San Antonio, Mexico City and Kingsville, Texas, staffed by approximately 1,800 people. The company differentiates itself through the development and implementation of leading-edge computer systems and operating procedures, as well as outstanding direct sales and account maintenance capabilities.
About Cidco
Cidco Inc. is a worldwide leader in personal Internet communications products and services that enable consumers to communicate simply and easily over the Internet. Cidco introduced its first Internet appliance in 1998, and now provides a family of portable, affordable, easy-to-use devices that make e-mail and other Internet-based information readily available to consumers. The company is headquartered in Morgan Hill, Calif., at the south end of Silicon Valley. For additional information, visit www.CIDCO.com or call (408) 779-1162.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements or predictions. These statements are only predictions. These statements, including predictions of significantly reducing costs and expenses and improved service for customers, represent our judgment as of this date and are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed in such forward-looking statements. These risks and uncertainties and other factors are discussed in more depth in CIDCO Inc. filings with the SEC, copies of which may be accessed through the SEC's World Wide Web site at http://www.sec.gov. CIDCO is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
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