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ROCKSHOX
Announces Big Changes
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FOR: ROCKSHOX, INC.
(408) 570-3520
CONTACT: Morgen-Walke Associates, Inc.
John Swenson, Leigh Parrish
(415) 296-7383
Sara Martowski
(212) 850-5600
ROCKSHOX ANNOUNCES RELOCATION PLAN, REDUCTION OF WORKFORCE
SAN JOSE, Calif. (Mar. 29, 2000) – ROCKSHOX, Inc. (NASDAQ: RSHX) – the leading developer of high performance mountain bike suspension – today announced that, in an effort to decrease costs, it plans to reduce its workforce and relocate and consolidate its two corporate offices to an active-lifestyle location in the Western United States.
RockShox’ two corporate offices in San Jose and Santa Cruz will be relocated and consolidated into one new location to be determined in April 2000. The Company’s Sales, Marketing, Research and Development, Information Technology, Finance and Human Resources departments are expected to be relocated this summer, enabling a reduction in RockShox’ operating cost structure, before relocation charges. RockShox’ manufacturing facility will remain in its current location in San Jose and its relocation will be evaluated over the next year.
“The new location for RockShox will be chosen next month, with the intention to have all operations under one roof within the next two years. The current location of our Company in the Silicon Valley does not lend itself well to the economic and lifestyle needs of our employees and our business,” said Chief Executive Officer Bryan Kelln. “We plan to move to a community that better suits a healthy, active, and affordable environment for the people that work at RockShox, while providing more cost effective business solutions for our global customer base.”
As part of its efforts to reduce costs and increase efficiency, RockShox also eliminated approximately 10% of its indirect workforce. This represents approximately 20 positions within the Company. One quarter of the reduction in personnel has resulted from attrition and elimination of certain positions. Severance packages have also been used to accomplish the downsizing in workforce.
Mr. Kelln continued, “In our view, scaling back our organization brings our resources in line with current and projected revenues. We have strategically evaluated our skill base to ensure a strong foundation for future growth in the mountain bike suspension market. We see a long-term path to profitability that requires decisive changes to our cost structure. Gains will be driven through relocation and increased efficiency in operations; growth through continued innovation in our product lines; and increased market share through improved customer satisfaction.”
About RockShox, Inc.
RockShox, Inc. is a worldwide leader in the design, manufacture and marketing of performance bicycle suspension products. The Company was founded in 1989, as the pioneer of modern bicycle suspension systems. Since that time, RockShox products have enhanced the comfort and performance of bicycling, as the sport of mountain biking has grown from an enthusiast to Olympic sport. The Company currently markets front suspension forks, rear shocks, and suspension seat posts under its Judy, Jett, Ruby, Boxxer, SID, Metro, and Deluxe product lines. More information is available at the Company’s web site www.rockshox.com.
Certain statements made in this news release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors are discussed in detail in RockShox’s Annual Report on Form 10-K for the fiscal year ended March 31, 1999. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements contained in the Annual Report on Form 10-K or this news release.
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