Exhibit 99.1
CORRECTING and REPLACING iMergent Streamlines Sales Force and Operations
Reports StoresOnline Express Successes at Initial Preview Sessions
Maintains Customer Services and Engineering Teams While Reducing
Staff Approximately 20% to Improve Margins
Revises 2008 Revenue and Net Dollar Volume of Contracts Written
Guidance
OREM, Utah--(BUSINESS WIRE)--Dec. 20, 2007--In BW5270 issued Dec.
20, 2007: Under "The Outlook, the Stock Repurchase Program and the
Dividend" section of the press release, the correct number of shares
repurchased since the program commencement in August 2006 is over
1,040,805 shares, not 1,400,805 as previously reported.
The corrected release reads:
IMERGENT STREAMLINES SALES FORCE AND OPERATIONS
Reports StoresOnline Express Successes at Initial Preview Sessions
Maintains Customer Services and Engineering Teams While Reducing
Staff Approximately 20% to Improve Margins
Revises 2008 Revenue and Net Dollar Volume of Contracts Written
Guidance
iMergent Inc., (AMEX:IIG), a leading provider of eCommerce
software for small businesses and entrepreneurs, announced the
streamlining of its sales team and administrative functions to
optimize the resources dedicated to launch StoresOnline(TM) Express
and to drive StoresOnline Pro sales. As a result, the company expects
to reduce operating expenses by approximately 15-20 percent and to
incur an associated charge in the second fiscal quarter of less than
$50,000.
StoresOnline Express' Initial Successes
Management also reported the initial statistics for the
StoresOnline Express October and November preview sessions. Express
workshops have experienced a higher percentage of buying units
upgrading to the StoresOnline Pro software compared to close rates of
26 percent in the quarter ended September 30, 2007 and 25 percent for
the quarter ended December 31, 2006. The company plans to offer
StoresOnline Express at about 30 percent of all preview sessions by
the end of January 2008 and at all preview sessions by the end of
March 2008.
The Vision
"Over the past several years, iMergent's primary goal has been to
aggressively grow sales of our flagship product StoresOnline Pro and
become the leading provider of superior eCommerce software solutions,"
said Don Danks, CEO of iMergent. "With StoresOnline Express, we are
expanding our core business to reach a greater audience, which
requires new marketing tactics as well as new curriculum at the
preview sessions. We are excited about our enhanced business model as
StoresOnline Express buyers are now able to 'test drive' our software
before attending workshops. The initial results of Express sales and
higher Pro close rates have inspired us to expedite the roll out of
the Express sales model."
The Plan
"The streamlining of our sales force is driven by the launch of
StoresOnline Express. While reviewing our implementation plan, we
determined we needed specific expert speakers and a smaller number of
sales teams to roll out Express. Also, we intend to visit targeted
markets less frequently than in the recent past to cultivate greater
pent-up demand. Hence, we will need fewer speakers and have reduced
the number of preview teams from 32 to approximately 18-20 and
workshop teams from nine to six. Additionally, we have decreased the
event and travel support staff and general administrative staff
accordingly. The overall staff reduction is approximately 20 percent
of our employee base, which is expected to deliver savings of
approximately $1.0 million annually in addition to commissions
associated with reduction of our sales force," continued Danks.
"Our employees are extremely valuable to the company; therefore,
this was a very difficult yet necessary action," said Brandon Lewis,
iMergent's president and COO. "We have reaffirmed our commitment to
StoresOnline merchants and preserved our customer service and
engineering teams that support our customers today and build our
future. Additionally, we will maintain our scalable infrastructure to
support future hires, when appropriate. While a smaller sales base
will lower our top-line expectations, we are confident this
retrenchment will improve operating margins and the company's
long-term potential to grow profitability."
The Outlook, the Stock Repurchase Program and the Dividend
Commenting on the company's outlook, CEO Don Danks continued, "We
expect our actions will have a positive impact on iMergent's future
bottom line. However, due to our streamlined sales force, lower than
expected sales and our continued absence from California and North
Carolina markets, we are revising our previously reported guidance of
10-15 percent increase over 2007. Fiscal 2008 expectations of revenues
and net dollar volume of contracts written will decrease 15-20 percent
over fiscal 2007 revenue of $151.6 million and net dollar volume of
contracts written of $165.3 million. We remain committed to our
continued growth and believe these changes will increase the volume of
people activating websites and thereby increase recurring revenue as
well as open potential new sales channel opportunities."
"The market continues to grow, according to AMI-Partners,
home-based businesses are expected to spend around $35 billion in
2008, up approximately 7 percent from 2007. We believe with a leaner
infrastructure, iMergent is better positioned to build upon our core
strengths, to advance our strategic vision and to deliver value to
shareholders. At this point in time, the board has elected to continue
to pay the quarterly cash dividend of $0.11 per share on the company's
common stock. Additionally, from September 30, 2007 through December
19, 2007, the company has repurchased 220,800 shares for approximately
$3.4 million, bringing the total shares purchased since the program
commencement in August 2006 to over 1,040,805 shares for approximately
$20.1 million. The company intends to maintain its policy of
opportunistically repurchasing shares," Danks concluded.
Please visit the Frequently Asked Questions section of iMergent's
website,
http://media.corporate-ir.net/media_files/irol/82/82078/streamliningfa
q.pdf, for additional information on the company's streamlining
efforts. (Due to its length, this URL may need to be copied/pasted
into your Internet browser's address field. Remove the extra space if
one exists.)
Safe Harbor Statement
Statements made in this press release regarding iMergent's (i)
streamlining of its sales team and administrative functions, (ii)
streamlining having the effect of optimizing resources dedicated to
launch StoresOnline(TM) Express and to drive StoresOnline Pro sales,
(iii) reducing operating expenses by approximately 15-20 percent and
to incur an associated charge in the second fiscal quarter of less
than $50,000, (iv) successfully introducing and selling StoresOnline
Express, (v) Express workshops having and continuing to have an
increase of buying units upgrading to the StoresOnline Pro software,
(vi) workshop close rates increasing and continuing to increase, (vii)
StoresOnline Express expanding the core business of the Company and
consequently reaching a greater audience, (ix) StoresOnline Express
enhancing the business model of the Company, (x) StoresOnline Express
buyers are able to "test drive" software before attending workshops,
(xi) streamlining of its sales force being driven by the launch of the
StoresOnline Express business model, (xii) need to have specific
expert speakers and a smaller number of sales teams to roll out
Express, (xiii) preserving its customer service and engineering teams
that support customers today and build future revenue and results,
(xiv) maintenance of its scalable infrastructure to support future
hires, when appropriate, (xv) expectation that the smaller sales base
will lower top-line expectations, (xvi) expectation that this
retrenchment will improve operating margins and the company's
long-term potential to grow profitability, (xvii) having decreased
event staff, travel support staff and general administrative staff of
approximately 20 percent delivering savings of approximately $1.0
million annually in addition to commissions associated with reduction
of the sales force (xviii) actions having a positive impact on its
future bottom line, (xix) expectations of revenues and net dollar
volume of contracts written decreasing 15-20 percent over fiscal 2007
revenue of $151.6 million and net dollar volume of contracts written
of $165.3 million, (xx) new business model increasing the volume of
people activating websites and thereby increasing recurring revenue as
well as opening potential new sales channel opportunities, (xxi) being
better positioned to build upon its core strengths, to advance its
strategic vision and to deliver value to its shareholders, (xxii)
continued ability and determination to offer cash dividends (xxiii)
anticipated effect of such cash dividend on the Company's liquidity,
(xxiv) ability to provide sufficient free cash flow to invest in
future growth and fund the share repurchase program and pay dividends,
and other statements that are not historical in nature constitute
forward-looking statements within the meaning of the Safe Harbor
Provisions of the Private Securities Litigation Reform Act of 1995.
Such statements are based on the current expectations and beliefs of
the management of iMergent and are subject to a number of risks and
uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. For a more
detailed discussion of risk factors that affect iMergent's operations,
please refer to the Company's Form 10-K for the year ended June 30,
2007 and its Form 10-Q for the quarterly period ended September 30,
2007. The Company undertakes no obligation to update this
forward-looking information, except as required by law.
About iMergent
iMergent provides eCommerce solutions to entrepreneurs and small
businesses enabling them to market and sell their business products or
ideas via the Internet. Headquartered in Orem, Utah, the company sells
its proprietary StoresOnline software and training services, which
help users build successful Internet strategies to market products,
accept online orders, analyze marketing performance, and manage
pricing and customers. In addition to software, iMergent offers site
development, web hosting and marketing products. iMergent typically
reaches its target audience through a concentrated direct marketing
effort to fill Preview Sessions, in which a StoresOnline expert
reviews the product opportunities and costs. These sessions lead to a
follow-up Workshop Conference, where product and technology experts
train potential users on the software and encourage them to make
purchases. iMergent, Inc. and StoresOnline are trademarks of iMergent,
Inc.
CONTACT: iMergent, Inc.
Robert Lewis, CFO, 801-431-4695
investor_relations@imergentinc.com
or
Lippert/Heilshorn & Associates
Kirsten Chapman or Dahlia Bailey, 415-433-3777
Investor Relations
dbailey@lhai.com