The writing is on the wall here folks, Chapter 11 is likely very very close. SGAS management took a horrendous loan (Market Rate +10%) on 425 Million dollars. Thats probably a 15-16% APR loan or $64,000,000.00 (64M) in interest ALONE annually on roughly 1/3 of their debt. They also gave up 20% of control of the company with that loan by adding a board seat and giving the seat to the lender. Cash position at last Moodys report was around 100M. They also have another roughly 1 BILLION dollars in debt elsewhere in other loans, you can assume thats another 80M+ annually in interest payments. Annual interest payments of 140M+ in loans and declining revenues are going to quickly burn up the remaining cash in short order. They are laying off people in huge droves, customers are not renewing, new sales are slow at best, and they have lost market relevance. All signs point to impending collapse........
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Product Marketing has no clue. Services are rolled out with minimal value add and are at best 16 months behind the competition. Pricing is always higher if not highest compared to DIY or on the street. No offering with Veeam, Nimble, Hyperconvergence vendors.....lack of vision and strategic plan. The blame is with product development- they are inept and have no desire to equip sales with tools to win.
I honestly don't know how Andy Stern and Susan Lynch sleep at night.
Andy makes 650 grand a year not including Bonus. Give us another postive outlook on the next all hands calls. Lay more off while the loser at the top gets rich. OR BETTER LETS OUTSOURCE YOU JOB.
That is huge. I'm shocked we havent heard bonuses have been eliminated this year. I might believe we can hang on to existing logos if we had good support. The reality is support s---s to put it mildly. Customers will continue to leave in droves.
I had heard it was 30% of sales, but no matter what it was it was big. The real crux is the elimination of SALES teams. They are far less interested in selling new logos this year and far more interested in salvaging the existing contracts. All reps are hybrid this year - and I would bet money they will be paid better to maintain existing customers than tackling new logos....
45% of total headcount? I'm assuming you're just talking about US employees.
HUGE layoffs on Friday and not a peep by management in any way
45% of the employees got vaporized on Friday
Not only likely, but all backed by actual facts. You simply say "ah FUD". I say get yourself educated. Links below:
Bloomberg Article on New Loan from KBB
https://www.bloomberg.com/news/articles/2018-01-05/leveraged-loan-investors-score-an-activist-manager-style-coup
Moodys Credit Article Ratings
https://www.moodys.com/research/Moodys-rates-Sungard-Availability-Services-new-term-loan-at-B1--PR_368250
S&P Downgrade to Junk Bond rating:
http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Sungard-Availability-Services-Capital-Inc-Downgraded-To-CCC-On-Weak-Cash-Flow-Generation-Outlook-Negative-1954496
Andy Stern mismanaged this company into the ground, and should be fired for incompetence. His contract however has a poison pill attached to it and the PE groups dont want to pay him ou to fire him:
Sterns Employment Agreement:
https://www.sec.gov/Archives/edgar/data/789388/000095012310073684/c04178exv10w1.htm
Unlikely - ah FUD