NII Holdings Announces Strategy To Realign Resources To Support Future Growth
RESTON, Va., Nov. 6, 2012 /PRNewswire/ -- NII Holdings, Inc. [NASDAQ: NIHD] a provider of differentiated mobile communications services operating under the Nextel brand in Latin America, today announced that it is taking actions to realign certain resources and roles between its headquarters and market units in order to create a stronger and more agile organization, and to facilitate future growth.
As part of this strategy, the Company is reassigning select positions located at its headquarters to its operations in Latin America and eliminating certain positions at its corporate headquarters. In total, the Company will reduce approximately 20 percent of its workforce at its headquarters in Reston, Virginia. These actions are designed to increase NII's operational agility, to streamline decision-making, and to begin reducing corporate headquarters costs, further strengthening the Company's ability to execute on its strategic priorities in Latin America.
"These actions will provide us with the right structure to capture the growth, scale, and accountability required to succeed in our markets and achieve our long-term growth objectives," said Steve Dussek, NII Holdings' chief executive officer. "By realigning our workforce, we will have a stronger foundation to execute our growth strategy which is focused on premium networks, a superior customer experience, and innovative products and services. The steps we are taking fortify our ability to leverage our high-quality services and technology in order to capture a larger share of the growing market for wireless communications in Latin America."
The company expects to incur one-time costs in the fourth quarter of approximately $8 million related to the headcount reduction at its corporate headquarters.
About NII Holdings, Inc.
NII Holdings, Inc., a publicly held company based in Reston, Va., is a provider of differentiated mobile communication services for businesses and high value consumers in Latin America. NII Holdings, operating under the Nextel brand in Brazil, Mexico, Argentina, Peru and Chile, offers fully integrated wireless communications tools with digital cellular voice services, data services, wireless Internet access and Nextel Direct Connect® and International Direct Connect(SM), a digital two-way radio. NII Holdings is a Fortune 500 and Barron's 500 company, and has also been named one of the best places to work among multinationals in Latin America by the Great Place to Work® Institute. The company trades on the NASDAQ market under the symbol NIHD. Visit the company's website at www.nii.com.
Nextel, the Nextel logo and Nextel Direct Connect and International Direct Connect are trademarks and/or service marks of Nextel Communications, Inc., and are used by NII's subsidiaries under license in Latin America.
Visit NII Holdings' news room for news and to access our markets' news centers: nii.com/newsroom.
Safe Harbor Statement
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. This news release includes "forward-looking statements" within the meaning of the securities laws. The statements in this news release regarding the business outlook and future performance, as well as other statements that are not historical facts, are forward-looking statements. Forward-looking statements are estimates and projections reflecting management's judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. With respect to these forward-looking statements, management has made assumptions regarding, among other things, network usage, customer growth and retention, pricing, operating costs, the timing of various events, the economic and regulatory environment and the foreign exchange rates that will prevail during 2012. Future performance cannot be assured and actual results may differ materially from those in the forward-looking statements. Some factors that could cause actual results to differ include the risks and uncertainties relating to the impact of more intense competitive conditions and changes in economic conditions in the markets we serve; the impact on our financial results, and potential reductions in the recorded value of our assets, that may result from fluctuations in foreign currency exchange rates and, in particular, fluctuations in the relative values of the currencies of the countries in which we operate compared to the U.S. dollar; the risk that our network technologies will not perform properly or support the services our customers want or need, including the risk that technology developments to support our services will not be timely delivered; the risk that customers in the markets we serve will not find our services attractive; unexpected results of litigation; and the additional risks and uncertainties that are described in NII Holdings' Annual Report on Form 10-K for the fiscal year ended December 31, 2011, as well as in other reports filed from time to time by NII Holdings with the Securities and Exchange Commission. This press release speaks only as of its date, and NII Holdings disclaims any duty to update the information herein.
NII Holdings, Inc.
1875 Explorer Street, Suite 1000
Reston, VA. 20190
Investor Relations: Tim Perrott
Media Relations: Claudia Restrepo
SOURCE NII Holdings, Inc.