Cadmus Communications Announces Purchase of Remainder of KnowledgeWorks Global Limited
April 11 2006 - 7:55AM
PR Newswire (US)
RICHMOND, Va., April 11 /PRNewswire-FirstCall/ -- Cadmus
Communications Corporation (NASDAQ:CDMS) today announced that it
has purchased through a subsidiary the remaining 20% of
KnowledgeWorks Global Limited ("KGL") from Datamatics Technologies
Limited ("DTL"), which gives the Company 100% ownership of its
content services operations in Mumbai and Chennai, India. KGL was
formed in 2003 as a joint venture with DTL, a business process
outsourcing services provider in India. KGL provides a full range
of content processing, content management and related services to
scientific, technical and medical ("STM"), scholarly and
educational publishers, and other organizations on a global basis.
Bruce V. Thomas, president and chief executive officer of Cadmus,
remarked, "We are very excited about the potential for KGL and our
ability to continue to grow our services to the STM and education
markets through the use of our global content services platform.
Our operations in Mumbai and Chennai provide a full range of highly
automated content services including copy editing, issue
management, composition, SGML/XML processing and data conversion.
We felt the time was right to negotiate the termination of the
joint venture agreement to provide us with 100% ownership of the
operations in India and as we continue to expand our global
operations." Continuing, Mr. Thomas said, "We are extremely
grateful to DTL and to Dr. Lalit Kanodia, founder and chairman of
DTL, who has served as a director for KGL, for the relationship
that has existed since 2000 and for our partnership in establishing
KGL in 2003. We have obtained a great deal of knowledge about
conducting business in India and learned from one of the leading
business process outsourcing providers in India. We believe
entering the market in India through the joint venture with DTL
helped us limit our risk, gave us insight into business operations
in India, and helped us establish our content services platform in
a manner that could quickly and efficiently serve the needs of our
customers." In August of 2005, Cadmus transferred Atul Goel to
Mumbai to serve as President and COO of KGL. Mr. Goel was formerly
the senior vice president of Cadmus' U.S. Production Technology
operations and has been instrumental in developing the workflows
and systems that link Cadmus and KGL production operations. Mr.
Goel will be focused on further integration and standardization of
workflows allowing Cadmus to offer both its U.S. and international
publishing customers a number of standardized workflows which will
optimize the mix of localized service and offshore production that
best meets each publisher's needs. Furthermore, Mr. Goel will
continue to guide the growth and development of the KGL team to
meet the expanding outsourcing needs of U.S. and international
publishers. --------------------------------------------- Cadmus
... Serving Education, Science, Health
--------------------------------------------- Cadmus Communications
Corporation provides end-to-end, integrated graphic communications
services to professional publishers, not-for-profit societies and
corporations. Cadmus is the world's largest provider of content
management and production services to scientific, technical and
medical journal publishers, the fifth largest periodicals printer
in North America, and a leading provider of specialty packaging and
promotional printing services. Additional information about Cadmus
is available at http://www.cadmus.com/. KnowledgeWorks Global
Limited ("KGL") is an Indian-based content services company that is
owned by Cadmus Communications Corporation. KGL provides a full
range of content processing, content management, XML coding and
related services to scholarly, educational, and trade publishers
around the world. KGL operates two processing centers in India,
Mumbai and Chennai, with employees skilled in major publishing
production platforms including XyVision, 3B2, TeX, Quark and
InDesign. Additional information about KGL is available at
http://www.kwglobal.com/. Statements contained in this release
relating to Cadmus' future prospects and performance are
"forward-looking statements" that are subject to risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied by such statements. Factors that
could cause actual results to differ materially from management's
expectations include but are not limited to: (1) the overall
economic environment, (2) the equity market performance and
interest rate environment, which can impact our pension liability,
(3) the impact of price increases for energy and other materials
and services affected by higher oil and fuel prices, (4) our
ability to grow revenue and market share in the educational market,
(5) significant price pressure in the markets in which we compete,
(6) the loss of significant customers or the decrease in demand
from customers, (7) our ability to continue to obtain improved
efficiencies and lower production costs, (8) the financial
condition and ability to pay of certain customers, (9) our ability
to implement and realize the expected benefits associated with our
equipment replacement and consolidation plan, including our ability
to successfully complete certain consolidation initiatives and
effect other restructuring actions, (10) our ability to operate
effectively in markets outside of North America, and (11) our
ability to realize the tax benefits associated with certain
transactions. Other risk factors are detailed from time to time in
our Securities and Exchange Commission filings. The information
provided in this release is provided only as of the date of this
release, and we undertake no obligation to update any
forward-looking statements made herein. DATASOURCE: Cadmus
Communications Corporation CONTACT: Paul K. Suijk, Senior Vice
President and CFO of Cadmus Communications Corporation,
+1-804-287-5694; or Atul Goel, President and COO of KnowledgeWorks
Global Limited, +91-22-555-65251 Web site: http://www.cadmus.com/
http://www.kwglobal.com/ Company News On-Call:
http://www.prnewswire.com/comp/115581.html
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