Jul, 2001 : Micron Names New Executive Team, Predicts Profitability

📅 July 27, 2001 - Micron Electronics, Inc. (micronelectronics.com), a leading provider of business-class Web hosting, today named the slate of officers it plans to propose to its board of directors to run the combined company after its planned acquisition of Interland (interland.com 👉 Total Reviews: 2
🙌 Average Rating: 5 / 10
👍 Good Reviews: 1
👎 Bad Reviews: 1
👈 Official Responses: 0) is complete.

Shareholders of both companies will vote on approval of the transaction onAugust 6, and the companies expect the transaction to close shortlythereafter. The new company will adopt the Interland name and beheadquartered in Atlanta.
"With only a couple of weeks to go before we bring these two companiestogether, I'm very excited to announce the line-up of seasoned professionalsthat will lead our company going forward," said Joel J. Kocher, chairman andchief executive officer of Micron Electronics. "We believe this team has theexperience and talent to drive the new Interland to leadership in the Webhosting industry, and that we have a very good shot at being the firstpublic company in our space to reach cash-flow profitability," said Kocher.The company has previously projected it will become EBITDA positive within12 months after the acquisition closes and free cash flow positive by threequarters following that.
"Although the current financial outlook of a few players has created marketuncertainty about the hosting sector, we think it's clear that our businessmodel and financial position make us very different from enterprise-focusedplayers, who are staggering under debt burdens and data centerover-capacity, and running out of cash. Our model is built on the efficiencyand scalability of the shared hosting and standardized managed servicesmarket -- which generates higher revenues and profit margins -- and requiresfar less data center space. With very low debt, and three times the amountof cash we need to reach profitability, we're positioned to win," saidKocher.
In its third quarter earnings announcement on June 21, 2001, the companyprojected that its net cash utilization for the combined companies will bebetween $65 million and $75 million before becoming cash flow positive. Thecompany stated it believes that the combined company is more than fullyfunded, with about three times that amount currently available on a proforma basis.
In addition to Kocher, who will continue in the role of chairman and CEO,the senior management team will include: Ken Gavranovic, vice chairman andchief technology officer; David Buckel, senior vice president and chieffinancial officer; Mark Alexander, senior vice president of sales andmarketing; Sid Ferrales, senior vice president and chief human resourcesofficer; Garrett Mullins, vice president of sales; Tim Allaway, vicepresident of customer service and technical support; Cliff Luckey, vicepresident of engineering and data center operations; Nick Farsi, senior vicepresident and chief information officer; Barbara Gibson, vice president ofpublic relations; and Steve Arnold, vice president and general counsel.