Cutbacks, Restructuring at Media 100
January 21, 2005
Marlboro, MA - Optibase is restructuring Media 100 by eliminating certain positions and reducing Research and Development initiatives with regards to the nonlinear video editing unit.
Saying the digital nonlinear market does not offer sufficient business growth opportunities, the company's goal is to improve the financial results derived from the Media 100 business unit, the company says. Optibase acquired Media 100 in June of last year.
Commenting on the restructuring, CEO Uzi Breier said, "Since joining Optibase, I have studied the markets in which we operate and have carefully evaluated our competitive position, as well as the growth opportunities existing in each of these markets. It is my belief, that at this time, the digital nonlinear editing market does not present Optibase with the most substantial growth opportunity and is not fully synergistic with the Company`s core activities. As a result, I have recommended to Optibase`s Board of Directors, and they have agreed, that it is in the best interest of the company and its shareholders to remove certain portions of our Media 100 activities and focus our resources on initiatives that may better position Optibase for growth in both the short and long-term."
He continued, "We believe that the telecom industry is emerging from recession and that telco TV will become a mainstream business for carriers, as TV over IP will no longer be held back by technology constraints and lack of infrastructure. This emergence has established the foundation for Optibase to become a leading player in the IPTV market, and in order to seize this opportunity we must focus our resources in this area. While we will continue to support the revenue generating elements of Media 100`s business, we believe that this restructuring will enable Optibase to focus more directly on growing the core segments of its business, maintaining its leadership position in the content creation market and expanding Optibase`s presence in the IPTV market."
Optibase was recently selected by Paltel, the national telecommunications provider in the Palestinian authority, and the official broadcaster of the Palestinian elections, to deliver live news from numerous sites of the Palestinian Authority during the elections which took place on January 9, 2005. The company's MGW 2000 streaming platform was used.
Optibase has alos recently opened a new office in Singapore that will focus on marketing, selling and supporting the company’s IPTV product offerings, following the recent decision of Optibase’s management and Board of Directors to focus more heavily on expanding its presence in the IPTV marketplace.
For more information, visit
www.optibase.com
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