jic
12-27-2001, 11:21 AM
Here is the message that was copied from ****edcompany.com
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----- Original Message -----
TO: All Verio Associates
FROM: Justin Jaschke, Chief Executive Officer
Alain Andreoli, President and Chief Operating Officer
DATE: December 21, 2001
SUBJECT: Update On Building Our Future in 2002
Thank you all for your continued support of NTT/Verio. You have stayed focused on
SERVING OUR CUSTOMERS and IMPROVING OPERATIONS throughout 2001. As a result of your
efforts, much progress has been made this year towards improving the financial
stability of NTT/Verio. Over the last few months we have drastically improved our
Revenue per associate and EBITDA. Specifically, the improvements are:
June 2001 November 2001
Annualized Revenue per ssociate $96.600 $118,100
EBITDA ($mm’s) ($20.8) ($17.0)
We have accomplished these improvements to our business in a very difficult market
environment. With that background, the purpose of this memo is to update you on our
business plans going forward into 2002.
FIRST SOME HISTORY
As you know, our merger with NTT Communications in 2000 provided the opportunity to
compete globally and move up market in service offerings and customer base. We made
significant investments, like many companies in our space, to keep up with the dot.com
growth and in anticipation of providing more advanced products and serving more
customers. Quite simply, we grew faster than the demand in the marketplace and the
demand significantly slowed with the downturn in the economy.
Faced with this economic reality we took bold and swift actions in the September
restructuring to increase revenue and reduce operating expenses. Those were difficult
and painful decisions for all us, but they were the right things to do for the
business given the economic environment. They have also paid off with our results for
the second half of this year.
GOOD NEWS- THE APPROVAL OF THE BUSINESS AND FINANCIAL PLANS FROM NTT HOLDINGS
As proof that the difficult actions we took in September were the right thing to do
for the business, we are pleased to announce that on December 20, 2001, the Board of
Directors for NTT Holdings approved NTT/Verio’s Three-Year Business Plan and funding
for 2002. Moreover, NTT Holdings’ Board of Directors approved the plan to
recapitalize our company by converting all existing interest-bearing debt of Verio to
equity resulting in significant interest costs savings to further strengthen our
financial position.
These actions by NTT Holdings are a vote of confidence that NTT/Verio is viewed as a
highly desirable and prized asset of NTT Communications. It is also a resounding show
of support for what we do from our parent and shareholder, NTT Communications.
NTT/Verio continues to be the core of NTT Communications’ strategy in becoming the
leading global IP solutions provider.
ACHIEVING THE GOALS FOR 2002
In the weeks to come, the individual business units and functional departments will be
crafting detailed specifics on the 2002 business and financial goals and the plans on
how to achieve these targets. These detail plans will require more difficult and
painful actions for all us to take including further restructuring of the business by
reducing expenses and debt, eliminating unneeded and under utilized facilities and
further headcount reductions. As soon as the NTT/Verio Board of Directors’ approves
the detailed plans sometime in mid to late January, we will communicate the details to
all of you.
WHAT DOES THIS MEAN TO ME?
We understand the angst and uncertainly this news will cause. Again, we anticipate
being in a position to provide you with more definitive information in the next 30 to
45 days. We have chosen to be open with you about the additional restructuring to
dispel rumors and speculation.
In the meantime, we ask for the professionalism that you have demonstrated time and
time again and that you continue to make, as your number one priority, service and
support of our valued customers. This continued dedication is hard when your personal
future may be uncertain. Only satisfied customers give us the winning edge to be
successful. We need that edge to achieve the financial targets for 2002. Every day
feeding into a month feeding into a quarter will be critical to our success in making
our revenue and expense targets.
We are personally committed to keeping you informed and to ensuring a bright and
successful future for NTT/Verio. The opportunity presented to us today by NTT
Holdings and NTT Communications is a big step towards a financially sound and
competitive NTT/Verio that benefits all of us in the long term. Do not lose sight of
the importance of NTT Holdings’ commitment to NTT/Verio and the solid backing we have
received from them today.
Again, thank you for all that you do and for all that we are asking of you. Count on
us to keep you updated.
Finally, we wish you and your families a Happy Holiday and New Year!
Justin and Alain
--------
----- Original Message -----
TO: All Verio Associates
FROM: Justin Jaschke, Chief Executive Officer
Alain Andreoli, President and Chief Operating Officer
DATE: December 21, 2001
SUBJECT: Update On Building Our Future in 2002
Thank you all for your continued support of NTT/Verio. You have stayed focused on
SERVING OUR CUSTOMERS and IMPROVING OPERATIONS throughout 2001. As a result of your
efforts, much progress has been made this year towards improving the financial
stability of NTT/Verio. Over the last few months we have drastically improved our
Revenue per associate and EBITDA. Specifically, the improvements are:
June 2001 November 2001
Annualized Revenue per ssociate $96.600 $118,100
EBITDA ($mm’s) ($20.8) ($17.0)
We have accomplished these improvements to our business in a very difficult market
environment. With that background, the purpose of this memo is to update you on our
business plans going forward into 2002.
FIRST SOME HISTORY
As you know, our merger with NTT Communications in 2000 provided the opportunity to
compete globally and move up market in service offerings and customer base. We made
significant investments, like many companies in our space, to keep up with the dot.com
growth and in anticipation of providing more advanced products and serving more
customers. Quite simply, we grew faster than the demand in the marketplace and the
demand significantly slowed with the downturn in the economy.
Faced with this economic reality we took bold and swift actions in the September
restructuring to increase revenue and reduce operating expenses. Those were difficult
and painful decisions for all us, but they were the right things to do for the
business given the economic environment. They have also paid off with our results for
the second half of this year.
GOOD NEWS- THE APPROVAL OF THE BUSINESS AND FINANCIAL PLANS FROM NTT HOLDINGS
As proof that the difficult actions we took in September were the right thing to do
for the business, we are pleased to announce that on December 20, 2001, the Board of
Directors for NTT Holdings approved NTT/Verio’s Three-Year Business Plan and funding
for 2002. Moreover, NTT Holdings’ Board of Directors approved the plan to
recapitalize our company by converting all existing interest-bearing debt of Verio to
equity resulting in significant interest costs savings to further strengthen our
financial position.
These actions by NTT Holdings are a vote of confidence that NTT/Verio is viewed as a
highly desirable and prized asset of NTT Communications. It is also a resounding show
of support for what we do from our parent and shareholder, NTT Communications.
NTT/Verio continues to be the core of NTT Communications’ strategy in becoming the
leading global IP solutions provider.
ACHIEVING THE GOALS FOR 2002
In the weeks to come, the individual business units and functional departments will be
crafting detailed specifics on the 2002 business and financial goals and the plans on
how to achieve these targets. These detail plans will require more difficult and
painful actions for all us to take including further restructuring of the business by
reducing expenses and debt, eliminating unneeded and under utilized facilities and
further headcount reductions. As soon as the NTT/Verio Board of Directors’ approves
the detailed plans sometime in mid to late January, we will communicate the details to
all of you.
WHAT DOES THIS MEAN TO ME?
We understand the angst and uncertainly this news will cause. Again, we anticipate
being in a position to provide you with more definitive information in the next 30 to
45 days. We have chosen to be open with you about the additional restructuring to
dispel rumors and speculation.
In the meantime, we ask for the professionalism that you have demonstrated time and
time again and that you continue to make, as your number one priority, service and
support of our valued customers. This continued dedication is hard when your personal
future may be uncertain. Only satisfied customers give us the winning edge to be
successful. We need that edge to achieve the financial targets for 2002. Every day
feeding into a month feeding into a quarter will be critical to our success in making
our revenue and expense targets.
We are personally committed to keeping you informed and to ensuring a bright and
successful future for NTT/Verio. The opportunity presented to us today by NTT
Holdings and NTT Communications is a big step towards a financially sound and
competitive NTT/Verio that benefits all of us in the long term. Do not lose sight of
the importance of NTT Holdings’ commitment to NTT/Verio and the solid backing we have
received from them today.
Again, thank you for all that you do and for all that we are asking of you. Count on
us to keep you updated.
Finally, we wish you and your families a Happy Holiday and New Year!
Justin and Alain