Cereplast Restructures Global Operations to Align With Market Opportunities
Reduces Annual Operating Expenses by $600,000-$800,000
EL SEGUNDO, Calif., May 7, 2013 (GLOBE NEWSWIRE) -- Cereplast, Inc.
(OTCQB:CERP) (the "Company"), a leading manufacturer of proprietary biobased,
compostable and sustainable bioplastics, today announced the restructuring of
its global operations to align with current market opportunities which is
expected to reduce annual operating expenses by $600,000 to $800,000 per year.
This cost reduction will allow the Company to dedicate this cash savings
toward organic growth and the required working capital to service new clients.
To achieve these cost savings, the Company is relocating its corporate
headquarters to Seymour, IN and is closing its offices in El Segundo, CA. The
Company is also moving its European headquarters to its office in Milan, Italy
and is closing the office in Bönen, Germany in order to strategically focus
the Company's efforts on the most immediate and dynamic markets for
bioplastics in Europe. These changes are effective as of May 2013.
Mr. Frederic Scheer, Chairman and CEO of Cereplast commented, "As we recently
announced, our revenue for the first quarter of 2013 was approximately
$900,000 to $1 million, exceeding the total revenue for the entire fiscal year
of 2012. We continue to be optimistic about the revenue potential for the
remainder of 2013, which will be derived primarily from Europe and the United
States. After a thorough analysis, we determined that it would be prudent to
consolidate our operations under one roof in the USA and under one roof in
Europe. The global economy has fundamentally changed and we are quickly
adapting our market approach and operations to maintain and build upon our
competitive advantage. This measure has been taken by management with the best
interest of our shareholders in mind, and achieves management's goal of
further reducing our operating costs and improving cash flow. Additionally,
our relocation will enable us to further focus our resources on developing the
markets where we expect to generate significant growth in the coming years. We
anticipate a smooth transition and expect these steps will improve our
financial outlook going forward."
About Cereplast, Inc.
Cereplast, Inc. (OTCQB:CERP) designs and manufactures proprietary biobased,
sustainable bioplastics which are used as substitutes for traditional plastics
in all major converting processes - such as injection molding, thermoforming,
blow molding and extrusions - at a pricing structure that is competitive with
traditional plastics. On the cutting-edge of biobased plastic material
development, Cereplast now offers resins to meet a variety of customer
demands. Cereplast Compostables® resins are ideally suited for single-use
applications where high biobased content and compostability are advantageous,
especially in the food service industry. Cereplast Sustainables® resins
combine high biobased content with the durability and endurance of traditional
plastic, making them ideal for applications in industries such as automotive,
consumer electronics and packaging. Learn more at www.cereplast.com. You may
also visit the Cereplast social networking pages at Facebook.com/Cereplast,
Twitter.com/Cereplast and Youtube.com/Cereplastinc.
Safe Harbor Statement
Matters discussed in this press release contain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
When used in this press release, the words "anticipate," "believe,"
"estimate," "may," "intend," "expect" and similar expressions identify such
forward-looking statements. Actual results, performance or achievements could
differ materially from those contemplated, expressed or implied by the
forward-looking statements contained herein. These forward-looking statements
are based largely on the expectations of the Company and are subject to a
number of risks and uncertainties. These include, but are not limited to,
risks and uncertainties associated with: the impact of economic, competitive
and other factors affecting the Company and its operations, markets, product,
and distributor performance, the impact on the national and local economies
resulting from terrorist actions, and U.S. actions subsequently; and other
factors detailed in reports filed by the Company.
CONTACT: Cereplast, Inc.
(310) 615-1900 x154
Alliance Advisors, LLC
Cereplast, Inc. Logo
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