Dark Myth Production Studios Announces Restructuring
Expects to Reduce Costs and Operating Expenses by 2010
Apple Valley, CA, June 26, 2009 --(PR.com)-- Dark Myth Production Studios today announced plans for restructuring, following an analysis of the company's structure and efficiency. As a result of this restructuring, the company expects to generate savings in costs and operating expenses by the end 2009. In 2010 the company expects savings from this restructuring to grow to approximately $10 Thousand annually.
The savings are a combination of non-workforce related steps and a significant reduction in Dark Myth Production Studios' workforce. The company's employee population will decline to approximately 20-25 by the end of this year, resulting from workforce reductions, attrition and previously announced actions. The workforce decline will go into affect by the middle of this month. In addition to the savings from the workforce reduction, the company expects savings in merchandising expenses, capital and materials.
"This was very hard to do (letting people go)," said Mario E. Martinez, Dark Myth Production Studios President and Chief Financial Officer. "Everybody within Dark Myth Productions Studios plays an important role and I did not want to see anyone leave, but with the economy the way it is this had to be done. As mentioned in a previous release, myself and Mr. Montoya have even stopped our side projects within the company to cut costs. I hope in they future we will be able to bring everyone back and get Dark Myth Productions Studios back to its original numbers, and with the current blue print laid out we should be able to."
Most job reductions this year will occur in management, marketing and information technology functions; reductions related to the previously announced sale of businesses and attrition. In 2010 the reductions will be more broadly based as Dark Myth Production Studios improves the company's efficiency.
In 2010 the company expects the cost and operating expense savings from this restructuring to grow to approximately $25 Thousand, as it achieves the full-year run rate on the projects implemented in 2009. In addition, Dark Myth Production Studios expects to achieve a capital expenditure avoidance by better utilizing manufacturing equipment and space. The company expects that approximately 25 percent of the project's savings in 2009 will reduce cost of sales, and the rest will reduce operating expenses.
Dark Myth Production Studios is currently in its quiet period, so an update to its business outlook will not be made at this time. Further information concerning savings and costs related to the restructuring project will be provided in quarterly earnings releases and related business outlook estimates. The earnings release for the second quarter of this year is scheduled for publication July 6.
About Dark Myth Production Studios:
Dark Myth Production Studios is set to be one of the world's most prominent entertainment companies. Dark Myth's operations are focused in four areas: Entertainment Publications, Comics, Feature Films, and On-line Entertainment. The company and its subsidiaries can be found on-line at darkmythproductions.com, darkmythpictures.com, darkmythcomics.com, theworldofmyth.com, and now, horrotica.com
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Forward-Looking Statements : This news release contains forward-looking statements which are subject to various risks and uncertainties. These risks and uncertainties include the conditions of the markets for the Internet, entertainment, and licensed merchandise, acceptance of the Company's subsidiaries, media and merchandise within those markets, and other risks and factors identified in documents filed with the Securities and Exchange Commission. Actual results could differ materially from those currently anticipated.
The savings are a combination of non-workforce related steps and a significant reduction in Dark Myth Production Studios' workforce. The company's employee population will decline to approximately 20-25 by the end of this year, resulting from workforce reductions, attrition and previously announced actions. The workforce decline will go into affect by the middle of this month. In addition to the savings from the workforce reduction, the company expects savings in merchandising expenses, capital and materials.
"This was very hard to do (letting people go)," said Mario E. Martinez, Dark Myth Production Studios President and Chief Financial Officer. "Everybody within Dark Myth Productions Studios plays an important role and I did not want to see anyone leave, but with the economy the way it is this had to be done. As mentioned in a previous release, myself and Mr. Montoya have even stopped our side projects within the company to cut costs. I hope in they future we will be able to bring everyone back and get Dark Myth Productions Studios back to its original numbers, and with the current blue print laid out we should be able to."
Most job reductions this year will occur in management, marketing and information technology functions; reductions related to the previously announced sale of businesses and attrition. In 2010 the reductions will be more broadly based as Dark Myth Production Studios improves the company's efficiency.
In 2010 the company expects the cost and operating expense savings from this restructuring to grow to approximately $25 Thousand, as it achieves the full-year run rate on the projects implemented in 2009. In addition, Dark Myth Production Studios expects to achieve a capital expenditure avoidance by better utilizing manufacturing equipment and space. The company expects that approximately 25 percent of the project's savings in 2009 will reduce cost of sales, and the rest will reduce operating expenses.
Dark Myth Production Studios is currently in its quiet period, so an update to its business outlook will not be made at this time. Further information concerning savings and costs related to the restructuring project will be provided in quarterly earnings releases and related business outlook estimates. The earnings release for the second quarter of this year is scheduled for publication July 6.
About Dark Myth Production Studios:
Dark Myth Production Studios is set to be one of the world's most prominent entertainment companies. Dark Myth's operations are focused in four areas: Entertainment Publications, Comics, Feature Films, and On-line Entertainment. The company and its subsidiaries can be found on-line at darkmythproductions.com, darkmythpictures.com, darkmythcomics.com, theworldofmyth.com, and now, horrotica.com
###
Forward-Looking Statements : This news release contains forward-looking statements which are subject to various risks and uncertainties. These risks and uncertainties include the conditions of the markets for the Internet, entertainment, and licensed merchandise, acceptance of the Company's subsidiaries, media and merchandise within those markets, and other risks and factors identified in documents filed with the Securities and Exchange Commission. Actual results could differ materially from those currently anticipated.
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Dark Myth Production Studios
Kevin Magnus
760-553-9617
darkmythproductions.com
Kevin Magnus
760-553-9617
darkmythproductions.com
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