MYCOM Announces Pre-Merger Results of First Quarter and Progress in Its Reorganization
CINCINNATI--(BUSINESS WIRE)--May 24, 2001--MYCOM Group, Inc. (OTCBB:MYCO - news) completed a merger with Cincinnati-based Broughton International0 on April 17, 2001.
Part of the merger was appointment of a new management team who has been busy implementing a reorganization plan. The new management recently announced a plan to restructure debt and reorganize the company's infrastructure to enable reductions in overhead and operating cost.
MYCOM reported first quarter revenues of $1,221,000, compared with $1,377,000 in the prior year. The company posted net losses of $177,000 in the first quarter 2001 and $104,000 in the first quarter 2000. The first quarter results only reflect activity occurring prior to the April merger. Reorganization actions have already resulted in captured savings of more than $600,000 per year.
MYCOM's new CEO, Rob Bransom said, ``we have moved quickly to identify efficiencies that were created by the merger; we're implementing a reorganization plan to provide more profitable operations in the future. We have also restructured our bank credit facilities to enable the capital necessary for development of new applications and products during the second half of 2001.
Broughton expects continued growth and profitable results. One of Broughton's key software vendors is converting all their direct sales accounts to a few large resellers, including Broughton, which should result in increased volume. In addition, Broughton has experienced increased sales of security products through improved associations with two of the security software industry's largest vendors.
With MYCOM's new focus on developing applications, training, communications and technical solutions, and with the addition of marketing expertise and sales experience provided by Broughton International, we are optimistically racing forward on business development projects.``
