Learn2 Supports Industry Standard E-Learning Courseware And Tools, Will Streamline Operations
Learn2 Corporation (Nasdaq: LTWC), an interactive
multimedia e-learning provider, announced today that it is taking additional
steps intended to better support its existing customers, attract new customers,
and to consolidate and streamline its operations. Learn2 is converting its courseware
libraries and its authoring tool, StreamMaker, to be compatible with the evolving
e-learning standards. The Company will phase out its Pryor, Oklahoma operations
and consolidate its e-learning business at its Denver, Colorado location.
Learn2’s mission is to be business and government’s preferred partner providing
open, interactive, multimedia e-learning solutions for their employees and customers.
As the e-learning industry evolves, customers are selecting content and tools
from a variety of sources and additionally mixing instructor led training with
e-learning. In response to those customer requirements, Learn2 is enabling its
courseware to support industry standards (AICC and SCORM) so that its courses
can interoperate with learning management systems provided by other vendors.
Standards based interoperability is crucial for companies implementing e-learning
initiatives because the freedom to choose best of breed courseware is very important
in establishing training programs that meet business objectives. Learn2 has
organized its courseware into three libraries: end-user desktop applications,
professional Information Technology (IT) software and business skills courses.
The courseware within these libraries is AICC compatible and the Company is
working to make it SCORM compatible so that it will "plug and play"
with other vendors’ learning management systems.
Learn2 is also extending its authoring tools to support its standards compatible
courseware and has taken steps to enable subject matter experts to more easily
develop their own courseware. All courseware developed by Learn2 meets strict
instructional design standards such as stating the objectives of the course,
prescribed number and variety of interactions, pre-assessment and post-assessments,
appropriate graphics and animation that meet criteria for its methodology and
standardized terminology, writing style and active voice and vocabulary.
Learn2 will phase out its production and distribution operations in Pryor,
Oklahoma and consolidate its e-learning business in Denver, Colorado, which
is the current home of the Company’s courseware and authoring tool development
activities. The result of all of these actions is that about 60 positions will
be eliminated, primarily in the Oklahoma facility and certain field sales operations.
Severance and related expenses attributable to the elimination of these positions
will be approximately $300,000. When fully implemented these steps are estimated
to result in a reduction of operating expenses of approximately $5.5 million
on an annualized basis. The Company is currently re-examining the value of its
intangible assets as of December 31, 2001, as a result of these actions. The
Company anticipates that it will reduce the value of its intangible assets as
of December 31, 2001 by less than $500,000.
Robert "Bo" Ewald, Executive Chairman of the Board of Directors of
Learn2, said, "We continue the process of aligning our operations with
our strategy and streamlining our business to work towards profitability. These
decisions are based on the trends taking place within the e-learning industry
and will enable us to cost effectively manage and grow the business. The steps
we are taking will help strengthen the foundation of the Company in both its
product direction and financial base."
Learn2 Corporation is driven to be business and governments’ preferred partner
offering open interactive multimedia e-learning solutions for their employees
and customers. Learn2 provides effective online and CD-ROM training in: end-user
desktop applications, professional Information Technology (IT) software and
business skills. Learn2 also partners with clients to design customized proprietary
or industry specific content. Learn2’s engaging courseware features content
from leading subject matter experts, sound instructional design, low bandwidth
capability due to our patented delivery platform, StreamMakerâ, and support
of industry standards. Learn2 is a complete interactive learning solution provider
and our learning programs including tracking, administration and support services.
For more information please call 1-888-339-8898 or visit www.learn2.com.
This news release contains forward-looking statements, which involve risks and
uncertainties. Accordingly, no assurance can be given that the actual events
and results will not be materially different than the anticipated results described
in the forward-looking statement. There are a number of important factors that
could cause actual results to differ materially from those expressed in any
forward-looking statements made by the Company. These factors include the Company’s
success in its business and operations; the activities of new or existing competitors,
the ability to attract and retain employees and strategic partners, the ability
to leverage intangible assets, the ability to complete new projects at planned
costs and on planned schedules and adoption of the Internet as a medium of commerce,
communications and learning. Investors are also directed to consider other risks
and uncertainties discussed in documents filed by the Company with the Securities
and Exchange Commission.
The Company undertakes no obligation to publicly release the
result of any revisions to these forward-looking statements, which may be made
to reflect events or circumstances after the date hereof or to reflect the occurrence
of unanticipated events.