Restructure of Business
The Directors of InfoChoice today announced a major restructuring
plan aimed at significantly improving the operating performance of
The salient features of this restructuring plan are:
* Increased focus on key products, being BankChoice, Margin Lending
Choice, BrokerChoice, InFARMation and Fax on Demand.
* Discontinuance of the content business by means of reaching an
agreement with Screaming Media. US based content provider Screaming
Media will take over the contracts of BecomeMedia from May 1st 2002.
In turn, Infochoice will be released from any continuing obligations
under the Screaming Media contract.
* Write-offs amounting to approx [$1,035,000] made up as follows:
Become Media goodwill write-down and associated costs $600,000
– Change in accounting policy for revenue recognition $285,000
– Other restructuring costs including staff redundancies $150,000
The goodwill write-off and change in accounting policy are cash
The Directors fully support the recently appointed CEO, Lisa
Montgomery and her dedicated team of eight employees and anticipate
that as a direct result of the implementation of this plan, the
Company's operating performance will improve in the coming months.