News

NetShift issues release on Fla. office closing

June 8, 2003

NEWBURY, United Kingdom -- NetShift Inc. issued a news release "in response to U.S. kiosk media speculation" confirming that the company closed its Cooper City, Fla., office on May 31. The office had three employees. See related story, "NetShift closes U.S. office."

The release said the "abrupt departure" of vice president of sales Robert Gallner in April forced NetShift's management into a review of its U.S. operations. Gallner had no comment on the release.

The release said the company "assessed that U.S. market conditions are difficult in the short term, with a general weakness in the U.S. kiosk sector compounded by the chaotic pricing strategies of the main players." The decision was made to close the U.S. operation rather than "divert management attention into a restructuring exercise which would yield few short term benefits."

Nigel Seed, NetShift chief executive officer, said, "We continue to service our U.S. customers through our long-standing industry relationship with MontegoNet and directly from our U.K. headquarters. As U.S. market conditions improve we may decide to re-open an office in a prime location with a significantly different structure to tackle the business environment in the region."

The release said the U.K. market for NetShift products and services remains "buoyant," with significant partner alliances, customer deployments and new project wins to be announced over the summer months.

There have been no job cuts at the company's Newbury headquarters, according to the release.