Innofactor Plc Stock Exchange Release September 17, 2014, at 08:30 am Finnish time
Innofactor announced on September 2, 2014, that it will start personnel negotiations in Finland regarding the reduction of less than ten positions and temporary layoffs based on financial and productional grounds. The negotiations affected the administrative functions and those business areas where customer purchasing behavior has changed. The number of employees to be temporarily laid off was estimated at the most approximately thirty.
The negotiations have been concluded. Innofactor’s order book developed favorably during the negotiations and, thus, the cost saving actions could be limited to a smaller number of positions than earlier announced. Innofactor will cut three positions and temporarily lay off eleven persons full-time and five persons part-time, both for ninety days. These actions will bring cost savings of approximately EUR 0.3 million in 2014.
In addition, other personnel arrangements that have been agreed on in Innofactor will generate cost savings of approximately EUR 0.1 million.
The above mentioned arrangements are not estimated to have a negative impact on net sales.
The Finland-based Group Executive Board members have each agreed on voluntarily relinquishing the worth of one month’s salary. This action will generate cost savings of approximately EUR 0.1 million in 2014.
The above mentioned actions – together with the other improvement measures announced in conjunction with the Interim Report in July – aim at securing the company’s 2014 financial targets.
”With the implemented actions we have adjusted our cost level with the current business situation and improved our operations”, states Innofactor’s CEO Sami Ensio. “Our target, in line with our strategy, is still to expand our operations in the Nordic countries. This can happen both through organic growth and via mergers or acquisitions.”
Espoo, September 17, 2014
INNOFACTOR PLC
Sami Ensio, CEO
Additional information:
CEO Sami Ensio, Innofactor Plc
Tel. +358 50 584 2029
sami.ensio@innofactor.com
Distribution:
NASDAQ OMX Helsinki
Principal media
Innofactor is one of the leading Nordic IT solution providers focused on Microsoft platforms. Innofactor delivers business critical solutions and maintenance services as a system integrator and develops its own software products and services. Innofactor’s own product development is focused on Microsoft’s Windows Azure based cloud solutions. Innofactor's customers include over 1,000 private and public sector organizations in Finland, Denmark, Sweden and elsewhere in Europe. The company has over 400 motivated and skilled employees in a number of locations in Finland, Denmark, and Sweden. From 2009 to 2013, Innofactor's annual net sales growth has been 43 percent on average. Leading Finnish business publication Kauppalehti selected Innofactor as the most successful company on the Finnish stock exchange in 2013. The Innofactor Plc share is listempoted in the technology section of the main list of NASDAQ OMX Helsinki Oy.