NEW YORK–(BUSINESS WIRE)–MIVA, Inc., (NASDAQ:MIVA), a digital media company, today announced the commencement of a restructuring program across its MIVA Media E.U. operations. The restructuring, which is due to be completed in Q4 2008, is expected to result in consolidation of the MIVA Media E.U. operations through the closure of several existing offices and a reduction in the company’s European workforce.
Under the restructuring, MIVA Media E.U. is expected to reach Adjusted EBITDA profitability in the fourth quarter of 2008. This follows Adjusted EBITDA losses in the E.U. of approximately $3.6 million in the first half of 2008, and GAAP net losses in the E.U. in the first half of 2008 of approximately $4.5 million1. It is expected that the restructuring expense will result in one-time charges in Q3 2008 of up to approximately $4 million.
“We believe that this restructuring will enable us to continue to serve our advertisers and publishers across Europe, but on a profitable basis,” commented Peter Corrao, President and Chief Executive Officer, MIVA, Inc. “We further believe that our U.S. and consolidated E.U. Media businesses should benefit from the new MIVA Media technology platform expected in the fourth quarter.”
The restructuring is subject to regulatory requirements in the individual European territories. MIVA, Inc. currently has European offices in the U.K., France, Germany and Spain.
About MIVA®, Inc.
MIVA, Inc. (NASDAQ:MIVA) is an integrated digital media and advertising company, which has two specific focuses: 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.