Quotesmith.com Trims Staff
Quotesmith.com, Inc. (ticker: QUOT, exchange: NASDAQ) News Release - 8/2/2001
Quotesmith.com Trims Staff
DARIEN, IL (August 2, 2001) -- Quotesmith.com (NASDAQ: QUOT), the online insurance broker that provides instant auto, life, health, dental and disability insurance quotes from more than 300 companies, today announced that it has reduced its full-time staff by 25 employees, or approximately 23 percent, as a result of its recent decision to shift certain back office functions related to the handling of insurance applications to third party administrative firms. The Company's toll-free customer care center, which is open from 7 to 7 CST Monday through Friday, will not be affected.
"While the decision to reduce staff is a difficult one that affects many dedicated and long-time employees, the economic reality of our online insurance brokerage business is that increased electronic routing of orders to insurance company home offices and selected outsourcers has resulted in a dramatic reduction of paperwork processing required of us," said Quotesmith.com chairman and founder, Robert Bland. The Company is offering affected employees a cash separation package but does not expect to incur any material or special charges.
Founded in 1984, Quotesmith.com owns and operates the industry's largest and most comprehensive insurance price comparison service. The Quotesmith.com Insurance Commerce Platform allows insurance shoppers to instantly view the best prices being offered by more than 300 leading companies, achieve maximum savings and have the freedom to buy from the company of their choice. Quotesmith.com provides personalized customer service assistance and policy placement services for its customers and generates revenues from the receipt of commissions and fees paid by insurance companies. Shares of Quotesmith.com trade on the Nasdaq SmallCap Market Exchange under the symbol "QUOT."
Cautions about Forward-Looking Statements
This announcement may contain forward-looking statements that involve risks, assumptions and uncertainties pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. This announcement also contains forward-looking statements about events and circumstances that have not yet occurred and may not occur. Expressions of future goals and similar expressions including, without limitation, "may," "will," "believes," "should," "could," "hope," "expect" "expected," "does not currently expect," "anticipates," "predicts," "potential" and "forecast," reflecting something other than historical fact, are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Investors should be aware that actual results may differ materially from the results predicted and reported results should not be considered an indication of future performance. Reported Web site activity and/or quotes are not necessarily indicative of any present or future revenue. The Company will not necessarily update the information in this press release if any forward-looking statement later turns out to be inaccurate. Potential risks and uncertainties include, among others, Quotesmith.com's limited e-commerce operating history, anticipated losses, unpredictability of future revenues, potential fluctuations in quarterly operating results, seasonality, consumer trends, competition, risks of system interruption, the evolving nature of its business model, the increasingly competitive online commerce environment, dependence on continuing growth of online commerce and risks associated with capacity constraints and the management of growth. More information about potential factors that could affect the company's financial results is included in the company's Annual Report on Form 10-K for the year ended December 31, 2000, which is on file with the United States Securities and Exchange Commission.
Quotesmith.com is a service mark of Quotesmith.com, Inc. All other names are trademarks of their respective owners. Copyright 2001. All rights reserved. Quotesmith.com, Inc.