|
Newsletters
|
|
|
|
|
|
WirelessDevNet.com Press Release
NeuStar Streamlines Mobile IM Services
NeuStar announced today that it has restructured its Next Generation Messaging (NGM) service organization to better position the business for the future growth of mobile instant messaging worldwide. NeuStar NGM is the market leader in mobile IM managed services worldwide, with 37 mobile operator customers across Europe and Asia Pacific.
The restructure has been designed to reduce expenses in the NGM business segment by taking advantage of the global operational capabilities of NeuStar to support its NGM business. This restructuring will result in the elimination of up to 110 employee positions by the end of the second quarter in 2009, which NeuStar believes will produce cost savings between 35% and 40% of NGM's total expenses. As a result of these cost cutting measures, NeuStar expects to take a restructuring charge of approximately $2.2 to $2.5 million this quarter for severance, lease costs and related expenses. Consistent with the company's focus on prudent spending and profitability, the company took into account that potential charges of this magnitude and type might be incurred in 2008 as the company pursued cost-cutting initiatives when it provided guidance on November 4, 2008.
The company reaffirmed its support for its NGM business segment, given the strong market potential and worldwide adoption of mobile instant messaging. NeuStar created NGM Services in November, 2006 by acquiring Followap Inc., a leading provider of instant messaging, presence, and interconnect services. Since the acquisition, the number of mobile network operators who trust NeuStar NGM to enable real-time communications using presence information has more than doubled, with a current addressable subscriber base of over 410 million.
About NeuStar
NeuStar provides market-leading and innovative services that enable trusted communication across networks, applications, and enterprises around the world. Visit NeuStar online at www.NeuStar.biz.
|
|
|
