NEW YORK – June 30, 2008. MIVA, Inc., (NASDAQ:MIVA), a digital media company, announced a restructuring plan on June 23, 2008 designed to maximize efficiencies within the company, eliminate certain unprofitable operations, and better position the company for the future.
Under the current restructuring plan, the company expects to reduce its active headcount by approximately 15% and anticipates winding-down its MIVA Media operation in Italy. This current restructuring plan is expected to deliver annualized savings of approximately $4 million against a one-time cost of approximately $1.4 million.
As part of maximizing its efficiencies, the company expects to place more focus on the development of high-margin operations such as its toolbar and personalized homepage brand, ALOT.
MIVA has built an active ALOT toolbar user base of 2.7 million1 since launching the ALOT brand in Q4 2007. While ALOT today accounts for 43% of the company’s overall toolbar user base of 6.3 million, the new brand is already delivering more than 55% of the company’s total toolbar revenue2. Revenue per thousand live users (RPMLU) is currently 62% higher through ALOT than MIVA’s legacy toolbar brand3. Additionally, ALOT’s retention rates are 14% improved when compared to MIVA’s legacy brand4.
“We continue to be extremely encouraged by the results we’re seeing from the ALOT roll-out and are actively exploring further product enhancements to help build on this growth. The ALOT customer base is increasing by on average 18%5 a month and we believe that these customers are proving more valuable than users of our legacy toolbar brand,” said Peter Corrao, Chief Executive Officer, MIVA, Inc. “Our restructuring plan should enable us to focus on growing these higher-margin operations and help to bring the company to profitability.”
Among the initiatives currently underway to further build on the success of the ALOT brand is an upgraded ALOT Homepage product, which is expected to launch in July 2008. It is expected that the upgraded ALOT Homepage product will allow users to fully customize their homepage choosing from a range of interest-specific widgets.
1 Source: Internal statists, 6.27.08
2 Source: Internal statistics
3 Source: Internal statistics 6.20.08 to 6.27.08
4 Source: Internal statistics 5.27.08 to 6.27.08
5 Source: Internal statistics Jan – May 2008
About MIVA Inc.
MIVA, Inc. (NASDAQ:MIVA) is a global digital media company with a mission to deliver valuable digital audiences to advertisers. MIVA has two focuses to its business: owning and operating a growing portfolio of consumer destination sites and interest-specific toolbars, through its MIVA Direct division; and running a third-party contextual Pay-Per-Click ad network focused on key vertical sectors, through its MIVA Media division. MIVA, Inc. operates across North America and Europe.