ORANGE, Conn.--(BUSINESS WIRE)--Tangoe, Inc. (NASDAQ:TNGO), a leading global provider of IT Expense Management (ITEM), which includes Telecom Expense Management (TEM), Managed Mobility Services (MMS), and Cloud Expense Management, today announced that the Board of Directors approved an efficiency and cost reduction initiative consisting of an 10% reduction in workforce and closing of underutilized facilities. The Company expects to incur total cash charges of approximately $3.6 million and to complete most of this planned initiative by the end of June 2016, with remaining cost reduction steps to be taken by the end of 2016.
"A thorough strategic review of our business revealed opportunities to optimize our operations and improve efficiencies," said James Foy, Chief Executive Officer (acting), Tangoe. "The actions we are announcing today underscore our commitment to maintaining a profitable and sustainable business model.”
As previously announced on March 7, 2016, the Company will restate its financial statements for the years 2013 and 2014, and the first three quarters of 2015. Although the Company cannot at this time estimate when it will complete the restatement and file its restated financial statements and its Form 10-K for the year ended December 31, 2015, it is diligently pursuing completion of the restatement and intends to file the Form 10-K as soon as reasonably practicable. To date, the review has not identified additional accounting errors that the Company believes would materially change the aggregate size of the expected adjustments described in the Company’s announcement on March 7, 2016. Because the review is ongoing, and because extensive audit procedures also are ongoing, there can be no assurance that additional errors will not be identified, and any such errors could be material.
Tangoe (NASDAQ:TNGO) is a leading global provider of IT Expense Management (ITEM), which includes Telecom Expense Management (TEM), Managed Mobility Services (MMS), and Cloud Expense Management software and services to a wide range of global enterprises and service providers. The Matrix is Tangoe's technology and services platform designed to help companies transform the management of IT assets, services, expenses and usage to create business value, increase efficiency and deliver a positive impact to the bottom line. Additional information about Tangoe can be found at www.tangoe.com.
Tangoe is a registered trademark of Tangoe, Inc.
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding our strategy, future operations, prospects, plans, and objectives of management are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “target,” “would,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include, among other things, statements about our efficiency and cost reduction initiative, including the scope of the terminations and office closures expected under the initiative, the expected timing of the completion of the initiative and the charges expected to be incurred in connection with the initiative, and the size of the expected adjustments resulting from our restatement of our financial statements. We may not actually achieve the expectations disclosed in our forward-looking statements, and investors should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the expectations disclosed in the forward-looking statements that we make. More information about potential factors that could affect our business and financial results is contained in our latest Quarterly Report on Form 10-Q as filed with the Securities and Exchange Commission on November 9, 2015. Additional information will also be set forth in our future Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and other filings that we make with the Securities and Exchange Commission. We do not intend, and undertake no duty, to release publicly any updates or revisions to any forward-looking statements contained herein.