Company Reduces Cost Structure to Meet Market Challenges
OAKMONT, PA — October 23, 2001 — ServiceWare Technologies, Inc. (Nasdaq: SVCW), a leading provider of enterprise solutions for service and support, today announced a strategic relationship with EPAM Systems to enhance product development capabilities. With this partnership, ServiceWare streamlines its operating costs and increases overall company viability without affecting its product roadmap or customer support.
EPAM Systems, based in Princeton, New Jersey and Minsk, Belarus, is a provider of outsourced application development services. EPAM employs over 300 software developers and engineers who have a proven track record of enterprise application development for blue chip customers, including Colgate-Palmolive, Samsung America, Bally of Switzerland, and Verizon Communications, as well as providing development services for a number of leading technology companies.
ServiceWare will be a strategic reseller of EPAM's development services within the United States. Both companies have enjoyed a long-standing relationship, which included co-development of ServiceWare's most recent product release, eService 4.0.
"The agreement with EPAM provides ServiceWare with a cost-effective software development capability that ensures continued support of our existing products while significantly enhancing our ability to deliver customer focused product enhancements and functionality," said Kent Heyman, CEO of ServiceWare. "We believe this partnership will allow us to weather the challenges of the current economic environment while continuing to deliver excellent service and comprehensive products to our customers."
In order to address the challenges of the on-going economic downturn, ServiceWare has taken aggressive steps to further reduce its cost structure, including a company wide workforce reduction of approximately 50 people. Revenues for the third quarter, based on preliminary information, will be approximately $2.1 million, which excludes any revenues related to the content business which was divested in July 2001. The pro forma loss per share from continuing operations will be in the range of $.18 to $.20. Pro forma adjustments include amortization of intangibles, stock compensation, restructuring costs and other income and expense. ServiceWare will announce actual third quarter results and host a conference call to discuss the results after the market closes on November 8, 2001.
About EPAM Systems
Established in 1993, EPAM is a leading provider of software development outsourcing services, e-business, enterprise relationship management, and content management solutions. EPAM delivers low-cost, high-quality software solutions globally using an onshore/offshore development model. Headquartered in Princeton, NJ, EPAM has development centers in Moscow, Russia and Minsk, Belarus. EPAM's customer base includes such companies as Colgate-Palmolive, Halliburton, Verizon Communications, Samsung America, CareFirst BlueCross BlueShield, Bally of Switzerland and other. In the technology world EPAM provides services to such firms as SAP, Brio Software, ServiceWare, PTC, and others. More information about the company can be found at www.epam.com
About ServiceWare Technologies, Inc.
ServiceWare is a leading provider of knowledge powered customer service and support solutions that are designed to improve agent productivity and customer satisfaction, while reducing operating costs. ServiceWare's enterprise and departmental solutions enable all businesses to easily manage, share and access corporate knowledge to effectively answer inquiries through contact center, help desk or Web self-service interactions. ServiceWare has helped customers achieve proven results, including AT&T Wireless, EDS, Cingular Wireless, Green Mountain Energy, H&R Block, QUALCOMM, Reuters and Texas Instruments.
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