New BPO business to help drive an estimated
$7.5 million in SG&A reductions
during the current fiscal year
LOS
ANGELES, July 11, 2023 /PRNewswire/ -- Cineverse
Corp. ("Cineverse" or the "Company") (NASDAQ: CNVS), a
global streaming technology and entertainment company with one of
the world's largest portfolios of streaming channels and content
libraries, today announced the launch of Cineverse Services India
("CSI"), a new business unit set up to facilitate Cineverse's
Business Process Outsourcing (BPO) strategy, which is central to
cost-cutting efforts in the current fiscal year.
The new unit, located in Kolkata and adjacent to
Cineverse's Engineering & Technology facility, will focus on
providing customer service, quality control, operations,
accounting, information technology, administrative and other
back-office functions to support Cineverse's growth.
The Company forecasts approximately $7.5
million in SG&A cost reductions over the course of the
current fiscal year (a 21% reduction), driven by savings from the
relocation of more than 50 identified Cineverse domestic roles,
full-time role eliminations, and the reduction of 3rd party
contract labor. The Company expects the majority of back office and
support roles to be operated from CSI, while the domestic employee
focus will center on sales, business development, content and
consumer strategy roles.
The Company recently hired Abhishek
Pradhan as a key leader of these efforts. Mr. Pradhan has
over 13 years' experience in business process outsourcing and
operations management, with experience at companies such as MSR IT
Solutions and WIPRO BPO. He will work closely with Cineverse
management to ensure a rapid, smooth scaling of CSI and will
oversee the hiring, training and day-to-day management of the CSI
team.
Chris McGurk, Chairman & CEO
of Cineverse, stated "Over the last two years, we have demonstrated
that our Indian operations provide a significant and unique
strategic advantage in the market. We have built world-class
technology with a talented, dedicated team of more than 60
technologists at Cineverse India. This unit saves the Company an
estimated $6 million per year
compared to similar domestic operations. Given this success and
cost savings, it makes strategic and economic sense to expand these
operations further to rapidly drive the Company towards sustainable
profitability and positive cash flow."
McGurk continued, "As we continue to focus on leveraging
next-generation technologies like AI, Machine Learning and computer
vision already integrated into our Matchpoint platform suite, the
talented teams in India will
become a central and integral part in building the future of
streaming across all facets of the company."
About Cineverse
Cineverse is a global streaming technology and entertainment
company with one of the world's largest portfolios of streaming
channels and content libraries, all powered by its advanced,
proprietary technology platform. Cineverse currently features
enthusiast brands for subscription video on demand (SVOD),
advertising-based video on demand (AVOD) and free, ad-supported
streaming television (FAST) channels. Cineverse entertains
consumers around the globe by providing premium feature film and
television series, enthusiast streaming channels and technology
services to some of the world's largest media, retail and
technology companies. For more information, please visit
www.cineverse.com.
Safe Harbor Statement
Investors and readers are cautioned that certain statements
contained in this document, as well as some statements in periodic
press releases and some oral statements of Cineverse officials
during presentations about Cineverse, along with Cineverse's
filings with the Securities and Exchange Commission, including
Cineverse's registration statements, quarterly reports on Form 10-Q
and annual report on Form 10-K, are "forward-looking'' statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 (the "Act''). Forward-looking statements include statements
that are predictive in nature, which depend upon or refer to future
events or conditions, which include words such as "expects,"
"anticipates,'' "intends,'' "plans,'' "could," "might,"
"believes,'' "seeks," "estimates'' or similar expressions. In
addition, any statements concerning future financial performance
(including future revenues, earnings, or growth rates), ongoing
business strategies or prospects, and possible future actions,
including those relating to the timing and completion of the
proposed offering, which may be provided by Cineverse's management,
are also forward-looking statements as defined by the Act.
Forward-looking statements are based on current expectations and
projections about future events and are subject to various risks,
uncertainties, and assumptions about Cineverse, its technology,
economic and market factors, and the industries in which Cineverse
does business, among other things. These statements are not
guarantees of future performance, and Cineverse undertakes no
specific obligation or intention to update these statements after
the date of this release.
For additional information, please contact:
At Cineverse
Julie
Milstead
424-281-5411
investorrelations@cineverse.com
The Equity Group Inc.
Carolyne
Sohn
408-538-4577
csohn@equityny.com
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SOURCE Cineverse Corp.