According to the agreements, the company will make one-time cash payments totaling $9.7 million to fully settle $38.2 million of future lease obligations. All of these cash payments will occur during the second quarter of 2003. Additionally, the company anticipates that, during the second quarter of 2003, it will record a restructuring benefit to its operating results in the range of seven to nine million dollars.
Ed Terino, senior VP and CFO of ATG, notes that resolving these excess lease obligations has been one of the company's primary financial objectives.
"The successful resolution of these leases is a significant accomplishment for ATG as we continue to work toward sustainable cash flow positive operations and profitability," says Bob Burke, ATG president and CEO. "These transactions greatly improve our long-term financial outlook as we continue to execute our business strategy and invest in new products."
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