A21 Reorganizing . . .

Stock Asylum Staff Report
Sept. 12, 2007


Trying to move closer to profitability, A21 announced on this date that it is consolidating some operations and reorganizing others. At the same time, the company promised "exciting new growth initiatives" and new products.

Chief Financial Officer Tom Costanza said the changes should save the company $1 million a year. Based on figures reported so far this year, the savings could reduce a21's annual losses by nearly 25 percent. During the first half of 2007, a21 has lost $2.1 million.

A21 said much of the savings will come from consolidating ArtSelelct's administrative and support positions at the company's Jacksonville, FL, headquarters. Currently, many of those employees are in Fairfield, IA, where ArtSelect has facilities to frame and deliver wall art.

Though some 25 jobs will be eliminated company-wide, there may be an increase in the number of positions in Jacksonville, a21 said.

The company also said its SuperStock stock photography division will be reorganized, but did not discuss specific changes.

In a prepared release, Chief Executive John Ferguson promised that "In the coming weeks, we expect to implement our growth initiatives and outline our long-term vision. These plans are designed to meet the creative needs of the marketplace and to create significant value for our stockholders."

Costanza said the company is studying its capitalization and debt structure and hopes to improve cash flow and liquidity. "We believe these operational improvements put the company in a much better position to accomplish this," he said.

At the end of the second quarter, the company reported that its cash position was $3.9 million. Working capital was $3.5 million with no short-term debt obligations.

The a21 web site is at: http://www.a21group.com.

SuperStock is at: http://www.superstock.com.

ArtSelect is at: http://www.artselect.com.