Opinion Research Announces Sale of Teleservices Segment and Market Research Segment Restructuring
03 Januar 2006 - 2:30PM
PR Newswire (US)
PRINCETON, N.J., Jan. 3 /PRNewswire-FirstCall/ -- Opinion Research
Corporation (NASDAQ:ORCI), today announced the sale of its
teleservices segment and the closure of certain non-strategic
market research operations. Teleservices Sale Effective December
31, 2005 our teleservices segment was sold to a management group in
exchange for the assumption of all liabilities and the potential
for future payments from the buyer. In addition, we expect that the
transaction will generate a material cash tax benefit. Although the
historic profitability of this business unit met our expectations
and exceeded that of its industry, the recent decline in revenues
and the resulting losses have made such a sale a desirable
transaction. Market Research Restructuring We are in the process of
closing our market research operations in South Korea and Mexico.
Both of these units have experienced erratic operating results and
are non-strategic in our services to our global clients. In
addition we are closing one of our domestic call centers. Financial
Impact The revenues and operating loss of the three affected
business units totaled $7.6 million and $(6.8) million respectively
for the nine months ended September 30, 2005. We expect that these
transactions will produce losses from disposal/closure as well as
losses from discontinued operations in the fourth quarter, and will
result in lower consolidated revenues and earnings than those
provided as guidance by the Company in our earnings press release
issued October 31, 2005, however, we believe that the transactions
should benefit future results. Net loss from disposal/closure and
discontinued operations is currently estimated to be $6.5 to $7.0
million for 2005. Net income from continuing operations is
currently estimated to be $1.4 to $1.6 million for 2005. This
includes the write-off of the equity offering expenses in the third
quarter and the refinancing charges in the first quarter that
collectively reduced net income by $1.6 million. The statements
above concerning the financial impact of these transactions are
based on current expectations. These statements are forward-looking
and actual results may differ materially. See "Forward-looking
Statements" below. About Opinion Research Corporation Founded in
1938, Opinion Research Corporation provides commercial market
research, health and demographic research for government agencies,
information services and consulting. The company is a pioneering
leader in the science of market and social research and has built
an international organization to support market intelligence in
both public and commercial markets. Further information is
available at http://www.opinionresearch.com/. Forward-looking
Statements This press release contains, within the meaning of the
safe harbor provision of the Private Securities Litigation Reform
Act of 1995, forward- looking statements that are based on
management's beliefs and assumptions, current expectations,
estimates and projections. These statements are subject to risks
and uncertainties and therefore actual results may materially
differ. The Company disclaims any obligation to update any
forward-looking statements whether as a result of new information,
future events, or otherwise. Important factors and risks that may
affect future results are described in the Company's filings with
the Securities and Exchange Commission, copies of which are
available upon request from the Company. DATASOURCE: Opinion
Research Corporation CONTACT: Douglas L. Cox, Executive Vice
President, Chief Financial Officer, of Opinion Research
Corporation, +1-609-452-5274 Web site:
http://www.opinionresearch.com/
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