NEW YORK, July 22, 2015 /PRNewswire/ -- Elephant Talk Communications Corp. (NYSE MKT: ETAK) ("Elephant Talk" or the "Company"), a global provider of Software Defined Network Architecture (ET Software DNA® 2.0) platforms and cyber security solutions, today announced that it has completed its initial restructuring efforts as part of its strategic plan to improve operational efficiencies, increase sales efforts and reduce expenditures. The plan includes eliminating approximately $5 million in 2015 from its annual cash operating SG&A budget consisting of a reduction in staff, elimination of office locations and a focus towards securing and supporting a growing number of Mobile Network Operator (MNO) and Mobile Virtual Network Operator (MVNO) customers in the Americas, Europe, the Middle East and Asia.
The Board-approved restructuring plan was the result of the need to refocus the business following the end of the Company's relationship with a large Mexican customer following its acquisition by a major U.S.-based carrier earlier this year, the subsequent financial settlement and the resulting restructuring and reduction of its outstanding debt obligations, both of which were announced recently. As part of the restructuring, the Company has divided its operations into two organizations - Delivery & Operations led by Co-President Dr. Armin Hessler and Sales & Innovation led by Co-President Martin Zuurbier. Delivery & Operations will be will be responsible for platform architecture, implementation and operations and Sales & Innovation will be responsible for all commercial activities, vendor management and R&D. With this business realignment, both divisions have made adjustments to their respective organizations to improve operational efficiencies and reduce costs.
Steven van der Velden, Chairman and CEO of Elephant Talk, stated, "Today is an important milestone for Elephant Talk, one that sets the Company on a new path for growth with a refocused and dedicated sales effort supported by a more operationally efficient delivery organization. As we enter the second half of 2015, these strategic adjustments are expected to begin to show in our results delivering reduced operating costs in our third quarter and improving top line growth in our fourth quarter. We believe it will also improve our ability to provide customers with exceptional products and support in the future as we grow. Management expects that this new operating structure and increased commercial focus will allow the Company to quickly and cost efficiently scale the business as we expect to add new clients later this year."
Mr. van der Velden continued, "The Company's renewed focus is targeting a global base in excess of 800 MNOs, helping them to better serve their own brands as well as their wholesale and enterprise customers in addition to the hundreds of larger Mobile Virtual Network Operators (MVNOs) brands, all of which seek cost efficiently, reliable and rapidly-deployable core network and operation support systems such as Elephant Talk's full suite of SDN and NFV-enabled platforms. Elephant Talk's sales organization which currently consists of 9 sales, channel management and sales support members, is expected to double over the next 12 month while we secure additional customers."
About Elephant Talk Communications Corp.:
Elephant Talk Communications Corp. (NYSE MKT: ETAK), is a global provider of mobile proprietary Software Defined Network Architecture (ET Software DNA® 2.0) platforms for the telecommunications industry. The Company empowers Mobile Network Operators (MNOs), Mobile Virtual Network Operators (MVNOs), Enablers (MVNEs) and Aggregators (MVNAs) with a full suite of applications, reliable industry expertise and high quality customer service without the need for substantial upfront investment. Elephant Talk counts several of the world's leading MNOs and technology companies amongst its customers and partners, including Vodafone, T-Mobile, Zain, HP and Affirmed Networks. Visit: www.elephanttalk.com.
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to Elephant Talk's plans and objectives, projections, expectations and intentions. These forward-looking statements are based on current expectations, estimates and projections about Elephant Talk's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of Elephant Talk may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, Elephant Talk also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from those projected or suggested in Elephant Talk's filings with the Securities and Exchange Commission (the "SEC"), copies of which are available from the SEC or may be obtained upon request from Elephant Talk.
SOURCE Elephant Talk Communications Corp.