Internet Commerce Corporation Announces Restructuring of Office Space
Norcross, Georgia – February 7, 2005 - Internet Commerce Corporation (ICC) (NASDAQ: ICCA), a leader in e-commerce solutions, today announced an office space restructuring that includes securing a sublease on its New York City space and a lease buyout for its Cary, North Carolina space.
ICC obtained its New York City office space as consideration for the acquisition of the Managed EC business unit from Inovis International, Inc. ICC successfully transitioned the acquired business to its facilities in Carrollton, Georgia in October of 2005 leaving the office space vacant. As a result, ICC entered into a sublease with TSYS Prepaid, a subsidiary of Total Systems Services (NYSE: TSS) headquartered in Columbus, Georgia. The sublease agreement began January 16, 2006 and runs till November 2010, the full length of ICC’s commitment. With the sublease, ICC will realize an improved cash flow of approximately $60,000 per month.
ICC also negotiated a buyout of its office space in Cary, North Carolina that will result in a one-time charge of $120,000 in January 2006. The buyout represented a 34% discount on the remaining lease obligation, saving approximately $61,000.
“I believe the office space restructuring emphasizes that we are determined to sustain our focus on managing costs and sustaining profitability,” said Glen Shipley, ICC’s chief financial officer. “Purchasing the Managed EC business for approximately $2.3 million or 50% of estimated minimum annual revenues of the acquired business illustrates continued commitment to our “Growth with Profitability” strategy.”
About Internet Commerce Corporation (ICC)
Internet Commerce Corporation (NasdaqCM: ICCA), headquartered in Norcross,
Georgia, is a leader in providing business-to-business e-commerce solutions. Thousands of customers
rely on ICC's comprehensive line of solutions, in-depth expertise, and unmatched
customer service to help balance cost, fit, and function required to meet
unique requirements for trading partner compliance, coordination, and collaboration.
With its software solutions, network services, hosted web applications,
managed services, and consulting services, ICC is the trusted provider
of e-commerce solutions for businesses, regardless of size and level of technical
sophistication, to connect them with their trading communities. For
more information, visit www.icc.net.
Except for the historical information contained herein, this press release includes forward looking statements which are subject to a number of risks and uncertainties, including the risks and uncertainties associated with rapidly changing technologies such as the Internet, the risks of technology development and the risks of competition. Actual results could differ materially. For more information about these risks and uncertainties, see the SEC filings of Internet Commerce Corporation.