Vicinity Corporation Announces Executive Management Changes; Reduction In Force in Non-Core Functions to Focus on Product Enhancements

Apr 30, 2001, 01:00 ET from Vicinity Corporation

    SUNNYVALE, Calif., April 30 /PRNewswire/ -- Vicinity Corporation
 (Nasdaq: VCNT), a leading provider of Internet-based marketing services for
 Web, wireless and speech platforms, announced today management team changes
 and a reduction-in-force of 40 employees to align its operating expenses and
 to concentrate on the growth of its core business model.
 
     Management Changes
     CEO and President Emerick Woods has resigned, effective immediately.  The
 company has retained an executive search firm to assist the Board in
 identifying qualified CEO candidates.  Norman H. Nie, a Vicinity Director
 since 1998, will serve as the company's Executive Chairman, overseeing
 implementation of the strategic direction of Vicinity.
     "After serving as Vicinity's Chief Executive for almost four years and
 commuting between Los Angeles and the Bay area the entire time, it is time for
 me to reorder my priorities and to spend more time with my family," said
 Woods.  "We have taken a number of significant steps over the past
 two quarters to successfully position the company for growth and to align cost
 and revenue structures toward the goal of accelerating our profitability
 goals.  Given my personal priorities and the actions taken over the past
 two quarters, I feel the timing is right to hand over responsibility to
 someone else to take the company to the next stage.  I leave Vicinity
 confident, that with the support of the Board and the Vicinity management and
 sales team, the company is well positioned to move forward and build upon the
 strengths of Vicinity's market position, technology leadership and product
 offerings."
     "Emerick has provided an incredible amount of vision and support,
 successfully taking Vicinity from a fledgling start-up to a publicly held
 company.  I wish to thank him for his invaluable leadership and guidance,"
 said Nie.  "We've made great progress as a company in recent years, building a
 strong brand franchise and amassing a prestigious base of more than
 350 customers, including 50 companies in the Fortune 500.  However, we must
 continue to press our business plan forward, and I have committed to the board
 to lead this process on a day-to-day basis.  We face many challenges as we
 endeavor to continue to develop our business.  I look forward to those
 challenges and to working closely with the company's management team in
 reaching these goals."
     Nie, a founder and long-time CEO of SPSS and now a technology partner with
 Vicinity-funder Oak Investment Partners, is a prominent figure in survey
 research, quantitative social science and political behavior.  Between
 1965 and 1968, while working on his Ph.D. at Stanford University, Nie and
 two colleagues created and designed the original statistical software system
 that was the genesis of today's SPSS, Inc., one of the nation's leading
 providers of analytical solutions for creating more profitable customer
 relationships.
     Nie served as President and Chief Executive Officer of SPSS from the
 company's founding until 1992.  Since that time, he has served as the
 company's Chairman and remains active, particularly in the product planning
 area.  Nie is co-founder and Chairman of Knowledge Networks, an innovative
 technology and marketing research company.  Nie also serves as Chairman of the
 Board of LexiQuest, Inc., Paris, France, a market creator of software
 solutions for the management, retrieval and access of textual information
 using linguistic technology.  He is also on the Board of Directors of
 Captura Software, Inc., a leading provider of global expense management
 solutions.
     In addition to his corporate duties, Nie has maintained an active academic
 career that began in the Bay Area where he received his Ph.D. at Stanford.
 After many years as a Professor in and Chairman of the Political Science
 Department at the University of Chicago, Nie joined the faculty of Stanford
 University in 1998 as Research Professor of Political Science and Director of
 the new, multi-disciplinary Stanford Institute for the Quantitative Study of
 Society (SIQSS).  Nie's writing has won numerous academic awards.
     Vicinity also announced today the addition of Tim McMullen as Chief
 Operating Officer.  McMullen, one of the founders and prior executive at
 Platinum Software Corporation, has served in executive roles at several
 technology companies including MindArrow, Inc., Alerio Software, and
 Captura Software.  He received his Bachelor of Science degree from the
 University of Dayton.
 
     Reduction in Force
     The Company's reduction in workforce of 40 people or 25 percent consisted
 mainly of Web developers doing Web customization work in its San Diego
 location and sizing its European operations to fit near-term opportunities.
 After this reduction in force, worldwide Vicinity personnel count is
 approximately 120.
     Vicinity will incur a one-time charge during its third-quarter fiscal
 2001 associated with these management changes and restructuring of
 approximately $4.0 million or approximately $0.14 per share including
 $0.8 million or approximately $0.03 per share previously reported during the
 February 21, 2001 earnings release.
     "The reduction-in-force actually has more to do with positioning the
 company to focus on enhancing our core product offerings for customers, than
 merely reducing our expenses.  Though clearly reducing expenses in a difficult
 and uncertain business environment is a prudent move," said Nie.  "At the same
 time, our third quarter revenues and earnings, which are scheduled to be
 reported on May 16, are currently expected to be within the range of the
 guidance previously given during the February earnings call."
     "It is our focus to enhance our already powerful suite of services for
 Web, wireless and speech platforms, to provide more products and thus more
 value to our growing customer base," said McMullen.
     Vicinity will host a conference call to discuss the actions announced
 today and to provide guidance for the Company's third quarter and beyond.  The
 call will take place on Wednesday, May 2, at 2 p.m. PDT.  The number for this
 call in the U.S. is 888-868-9083 and international callers should dial
 973-633-1010.  The passcode is 2573304.  A replay of the call can be accessed
 through 5 p.m. PDT through May 9, 2001.  Callers in the U.S. should dial
 877-519-4471 and international callers should dial 973-341-3080.  The passcode
 is 2573304.
 
     About Vicinity
     Vicinity Corporation is a leading provider of Internet-based
 infrastructure marketing services for brand-name Global 2000 companies.  The
 Company's solutions, available in 18 countries and in 10 languages, enable its
 clients to direct their customers searching for a specific product or service
 to the nearest brick-and-mortar store that carries that product or service.
 Vicinity's customers include FedEx, Ford, GM, Hilton Hotels Corporation,
 Marriott, McDonald's, NEC, Pizza Hut, Starbucks, Starwood Hotels, Taco Bell,
 Toyota, Levi Strauss & Co. and UPS.  Its suite of private-label and co-branded
 content and services -- available via the Internet, landline telephone,
 cellular phones, WAP phones, and other wireless devices -- includes Vicinity
 Business Finder(SM), Speech Business Finder(SM), SiteMaker(SM), MapBlast!(R)
 Mapping Services.
     Vicinity was established in 1995, is headquartered in Sunnyvale, Calif.,
 and has offices in San Diego, Calif., New Hampshire, and the U.K. Vicinity(R)
 is a registered service mark of Vicinity Corporation.
 
     Business Risks and Forward-Looking Statements
     This press release contains forward-looking statements relating to the
 business outlook for Vicinity for the current quarter and the balance of the
 current fiscal year, trends in business conditions, revenues, expenses and
 earnings, actions to be taken with the objective of improving business
 efficiency, improved sales and marketing productivity and other factors
 affecting growth in sales and earnings.  Statements regarding market
 conditions and Vicinity's business outlook are based largely on our current
 expectations and are necessarily subject to associated business risks related
 to, among other things, the speed which with the market for our services
 develops, our ability to further expand the sales of existing products and to
 up-sell our existing customers, and the ability to productively integrate the
 people and technologies of any current or future acquisitions into our
 business, some of which are outside of Vicinity's control.  We have a limited
 operating history, which limits the ability of past performance to act as a
 predictor of future events.
     Sales and earnings trends are also affected by many other factors
 including, among others, general economic conditions and the effectiveness of
 our pricing, sales and technology strategies.  In light of these risks, there
 can be no assurance that the forward-looking statements contained in this
 press release will in fact be realized.  The statements made by management
 above represent Vicinity's views as of the date of this press release, and it
 should not be assumed that the statements made herein remain accurate as of
 any future date.  Vicinity does not presently intend to update these
 statements and undertakes no duty to any person to effect any such update
 under any circumstances
     For a further discussion of risks associated with the Vicinity's business,
 please see the discussion under the caption "Risk Factors" contained under the
 caption, "Factors That May Affect Future Results" in the Company's Quarterly
 Report on Form 10-Q for the fiscal quarter ended January 31, 2001, and the
 other reports that have been filed by Vicinity with the Securities and
 Exchange Commission and may be accessed through the EDGAR database maintained
 by the SEC at www.sec.gov.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X12316142
 
 

SOURCE Vicinity Corporation
    SUNNYVALE, Calif., April 30 /PRNewswire/ -- Vicinity Corporation
 (Nasdaq: VCNT), a leading provider of Internet-based marketing services for
 Web, wireless and speech platforms, announced today management team changes
 and a reduction-in-force of 40 employees to align its operating expenses and
 to concentrate on the growth of its core business model.
 
     Management Changes
     CEO and President Emerick Woods has resigned, effective immediately.  The
 company has retained an executive search firm to assist the Board in
 identifying qualified CEO candidates.  Norman H. Nie, a Vicinity Director
 since 1998, will serve as the company's Executive Chairman, overseeing
 implementation of the strategic direction of Vicinity.
     "After serving as Vicinity's Chief Executive for almost four years and
 commuting between Los Angeles and the Bay area the entire time, it is time for
 me to reorder my priorities and to spend more time with my family," said
 Woods.  "We have taken a number of significant steps over the past
 two quarters to successfully position the company for growth and to align cost
 and revenue structures toward the goal of accelerating our profitability
 goals.  Given my personal priorities and the actions taken over the past
 two quarters, I feel the timing is right to hand over responsibility to
 someone else to take the company to the next stage.  I leave Vicinity
 confident, that with the support of the Board and the Vicinity management and
 sales team, the company is well positioned to move forward and build upon the
 strengths of Vicinity's market position, technology leadership and product
 offerings."
     "Emerick has provided an incredible amount of vision and support,
 successfully taking Vicinity from a fledgling start-up to a publicly held
 company.  I wish to thank him for his invaluable leadership and guidance,"
 said Nie.  "We've made great progress as a company in recent years, building a
 strong brand franchise and amassing a prestigious base of more than
 350 customers, including 50 companies in the Fortune 500.  However, we must
 continue to press our business plan forward, and I have committed to the board
 to lead this process on a day-to-day basis.  We face many challenges as we
 endeavor to continue to develop our business.  I look forward to those
 challenges and to working closely with the company's management team in
 reaching these goals."
     Nie, a founder and long-time CEO of SPSS and now a technology partner with
 Vicinity-funder Oak Investment Partners, is a prominent figure in survey
 research, quantitative social science and political behavior.  Between
 1965 and 1968, while working on his Ph.D. at Stanford University, Nie and
 two colleagues created and designed the original statistical software system
 that was the genesis of today's SPSS, Inc., one of the nation's leading
 providers of analytical solutions for creating more profitable customer
 relationships.
     Nie served as President and Chief Executive Officer of SPSS from the
 company's founding until 1992.  Since that time, he has served as the
 company's Chairman and remains active, particularly in the product planning
 area.  Nie is co-founder and Chairman of Knowledge Networks, an innovative
 technology and marketing research company.  Nie also serves as Chairman of the
 Board of LexiQuest, Inc., Paris, France, a market creator of software
 solutions for the management, retrieval and access of textual information
 using linguistic technology.  He is also on the Board of Directors of
 Captura Software, Inc., a leading provider of global expense management
 solutions.
     In addition to his corporate duties, Nie has maintained an active academic
 career that began in the Bay Area where he received his Ph.D. at Stanford.
 After many years as a Professor in and Chairman of the Political Science
 Department at the University of Chicago, Nie joined the faculty of Stanford
 University in 1998 as Research Professor of Political Science and Director of
 the new, multi-disciplinary Stanford Institute for the Quantitative Study of
 Society (SIQSS).  Nie's writing has won numerous academic awards.
     Vicinity also announced today the addition of Tim McMullen as Chief
 Operating Officer.  McMullen, one of the founders and prior executive at
 Platinum Software Corporation, has served in executive roles at several
 technology companies including MindArrow, Inc., Alerio Software, and
 Captura Software.  He received his Bachelor of Science degree from the
 University of Dayton.
 
     Reduction in Force
     The Company's reduction in workforce of 40 people or 25 percent consisted
 mainly of Web developers doing Web customization work in its San Diego
 location and sizing its European operations to fit near-term opportunities.
 After this reduction in force, worldwide Vicinity personnel count is
 approximately 120.
     Vicinity will incur a one-time charge during its third-quarter fiscal
 2001 associated with these management changes and restructuring of
 approximately $4.0 million or approximately $0.14 per share including
 $0.8 million or approximately $0.03 per share previously reported during the
 February 21, 2001 earnings release.
     "The reduction-in-force actually has more to do with positioning the
 company to focus on enhancing our core product offerings for customers, than
 merely reducing our expenses.  Though clearly reducing expenses in a difficult
 and uncertain business environment is a prudent move," said Nie.  "At the same
 time, our third quarter revenues and earnings, which are scheduled to be
 reported on May 16, are currently expected to be within the range of the
 guidance previously given during the February earnings call."
     "It is our focus to enhance our already powerful suite of services for
 Web, wireless and speech platforms, to provide more products and thus more
 value to our growing customer base," said McMullen.
     Vicinity will host a conference call to discuss the actions announced
 today and to provide guidance for the Company's third quarter and beyond.  The
 call will take place on Wednesday, May 2, at 2 p.m. PDT.  The number for this
 call in the U.S. is 888-868-9083 and international callers should dial
 973-633-1010.  The passcode is 2573304.  A replay of the call can be accessed
 through 5 p.m. PDT through May 9, 2001.  Callers in the U.S. should dial
 877-519-4471 and international callers should dial 973-341-3080.  The passcode
 is 2573304.
 
     About Vicinity
     Vicinity Corporation is a leading provider of Internet-based
 infrastructure marketing services for brand-name Global 2000 companies.  The
 Company's solutions, available in 18 countries and in 10 languages, enable its
 clients to direct their customers searching for a specific product or service
 to the nearest brick-and-mortar store that carries that product or service.
 Vicinity's customers include FedEx, Ford, GM, Hilton Hotels Corporation,
 Marriott, McDonald's, NEC, Pizza Hut, Starbucks, Starwood Hotels, Taco Bell,
 Toyota, Levi Strauss & Co. and UPS.  Its suite of private-label and co-branded
 content and services -- available via the Internet, landline telephone,
 cellular phones, WAP phones, and other wireless devices -- includes Vicinity
 Business Finder(SM), Speech Business Finder(SM), SiteMaker(SM), MapBlast!(R)
 Mapping Services.
     Vicinity was established in 1995, is headquartered in Sunnyvale, Calif.,
 and has offices in San Diego, Calif., New Hampshire, and the U.K. Vicinity(R)
 is a registered service mark of Vicinity Corporation.
 
     Business Risks and Forward-Looking Statements
     This press release contains forward-looking statements relating to the
 business outlook for Vicinity for the current quarter and the balance of the
 current fiscal year, trends in business conditions, revenues, expenses and
 earnings, actions to be taken with the objective of improving business
 efficiency, improved sales and marketing productivity and other factors
 affecting growth in sales and earnings.  Statements regarding market
 conditions and Vicinity's business outlook are based largely on our current
 expectations and are necessarily subject to associated business risks related
 to, among other things, the speed which with the market for our services
 develops, our ability to further expand the sales of existing products and to
 up-sell our existing customers, and the ability to productively integrate the
 people and technologies of any current or future acquisitions into our
 business, some of which are outside of Vicinity's control.  We have a limited
 operating history, which limits the ability of past performance to act as a
 predictor of future events.
     Sales and earnings trends are also affected by many other factors
 including, among others, general economic conditions and the effectiveness of
 our pricing, sales and technology strategies.  In light of these risks, there
 can be no assurance that the forward-looking statements contained in this
 press release will in fact be realized.  The statements made by management
 above represent Vicinity's views as of the date of this press release, and it
 should not be assumed that the statements made herein remain accurate as of
 any future date.  Vicinity does not presently intend to update these
 statements and undertakes no duty to any person to effect any such update
 under any circumstances
     For a further discussion of risks associated with the Vicinity's business,
 please see the discussion under the caption "Risk Factors" contained under the
 caption, "Factors That May Affect Future Results" in the Company's Quarterly
 Report on Form 10-Q for the fiscal quarter ended January 31, 2001, and the
 other reports that have been filed by Vicinity with the Securities and
 Exchange Commission and may be accessed through the EDGAR database maintained
 by the SEC at www.sec.gov.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X12316142
 
 SOURCE  Vicinity Corporation