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RAINING
DATA CORPORATION
NEW MANAGEMENT TEAM TRIMS COSTS BY MORE THAN $3 MILLION
IRVINE,
Calif., January 5, 2001 - Raining Data Corporation (Nasdaq Small
Cap: RDTA), formerly known as Omnis Technology Corporation,
announced today expense reductions expected to total more than
$3 million annually.
First,
as a result of the refinancing announced last month, quarterly
interest expenses have been reduced by approximately $130,000.
Second, in connection with the merger, the workforce was reduced
by 14%, cutting quarterly compensation expenses by more than
$300,000. Third, "other expenses" were trimmed by approximately
$300,000 per quarter by consolidating office space, including
transferring many of the management functions from San Carlos,
California to Raining Data's Irvine headquarters, reducing product
packaging and shipping costs, and cutting outside professional
expenses.
"By
aggressively strengthening cost controls and reducing corporate
debt, our new management team is working to enhance the combined
Company's financial performance," said Bryce Burns, Chairman
and Interim CEO of Raining Data. Burns continued, "These actions
are intended to better enable us to take advantage of exciting
emerging trends in cross-platform, web-enabled, data-intensive
business applications. Rich Lauer, who became the Company's
President this week, and I are committed to driving sustained
improvement in our operating performance by expanding Raining
Data's market opportunities and reducing costs. We expect to
see the results of our efforts as early as the first half of
calendar 2001."
About
Raining Data
Raining
Data Corporation, headquartered in Irvine, California, was created
as a result of the December 1, 2000 merger of Omnis Technology
Corporation and Pick Systems. With over 175 employees in five
countries, Raining Data's pro forma combined revenue for the
fiscal year ended March 31, 2000 exceeded $23 million.
The
combined Company now offers a comprehensive suite of high-performance,
cost-effective software infrastructure solutions that enable
developers to create highly scalable, enterprise-level Web-enabled
applications. With a powerful range of low-cost, quick-to-market
alternatives, the new product platform is designed to meet the
needs of Raining Data's large combined base of existing customers
as well as new e-commerce software developers. Two of Raining
Data's flagship products are: 1) Omnis Studio®-a powerful, cross-platform,
object-oriented rapid application development (RAD) tool that
is ideally suited for developing sophisticated thick, thin,
or ultra-thin client-based applications, and 2) D3®
-a multidimensional database management system that is the choice
of thousands of application developers worldwide.
The
statements in this press release that are not historical facts
are forward-looking statements, including but not limited to
discussions of expense reductions, emerging trends, operating
performance and market opportunities. These forward-looking
statements are inherently subject to numerous risks and uncertainties
and the Company's actual results could differ materially from
those in such forward-looking statements. You should consult
the various reports and documents filed by Raining Data Corporation,
formerly known as Omnis Technology Corporation, with the U.S.
Securities and Exchange Commission, including but not limited
to the Annual Report of the Company on Form 10-KSB/A for the
last fiscal year of the Company. All forward-looking statements
are made as of the date hereof and the Company disclaims any
responsibility to update or revise any forward-looking statement
provided in this news release.
©2001
Raining Data Corporation. All Rights Reserved. PICK Systems
and D3 are registered trademarks of PICK Systems,
Inc. Omnis is a registered trademark of Omnis Software Limited,
a subsidiary of Raining Data Corporation. Omnis Studio and Omnis
7 are trademarks of Raining Data Corporation. All other products
or service names mentioned herein are trademarks of their respective
owners.
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