ATG Settles $38.2 M in excess lease obligations

Friday, 09 May 2003, 19:30 IST
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CAMBRIDGE: ATG (Art Technology Group, Inc., NASDAQ: ARTG) Friday announced it has successfully settled three of its excess real estate obligations. The three facilities are located in San Francisco, CA; Cambridge, MA; and Toronto, Canada, and represent the majority of ATG's worldwide excess lease obligations. Pursuant to the agreements, the company will make one-time cash payments totaling $9.7 million to fully settle $38.2 million of future lease obligations. All of these cash payments will occur during the second quarter of 2003. Additionally, the company anticipates that, during the second quarter of 2003, it will record a restructuring benefit to its operating results in the range of $7.0 to $9.0 million. "Resolving these excess lease obligations has been one of our primary financial objectives," said Ed Terino, senior vice president and CFO. "Our efforts have resulted in a significant reduction of ATG's future cash commitments and a much improved financial position." "The successful resolution of these leases is a significant accomplishment for ATG as we continue to work toward sustainable cash flow positive operations and profitability," said Bob Burke, ATG president and CEO. "These transactions greatly improve our long-term financial outlook as we continue to execute our business strategy and invest in new products."
Source: IANS