Alesis Restructuring Rumours True

Seems like something is afoot in the smoke filled rooms      06/04/01
Santa Monica, California – The Alesis Corporation today announced a company-wide restructuring in an effort to refocus on its core business and ensure a smooth launch of their newly introduced product line. Jim Mack, Alesis Vice President of Sales and Marketing said, “A very aggressive new product plan coupled with slower than expected sales of our current line have forced us to make targeted cutbacks in order to secure our position in the marketplace. These streamlining efforts, while unfortunate, guarantee the necessary resources for a strong product launch later this spring.” As part of the restructuring, Alesis announced they would be handing off two products to the original development partners. The Vipre All-Tube Mic Pre, originally developed jointly by Alesis and Groove Tubes under Alesis’ GT Electronics brand, will now be manufactured and marketed solely by Groove Tubes. (Contact information: Groove Tubes, 1543 Truman Street, San Fernando, CA 90340, 818-361-4500.) As part of this agreement, the GT Electronics brand will remain at Alesis and will continue to market the AM series tube and FET studio recording microphones. Jim Mack relates, "While we are very excited by the response to Vipre, it also represents a new direction for us at a time when we need to focus on our strengths." Alesis will also be handing off the DMPro Drum Kit to HART Dynamics. HART will now assume all sales and marketing responsibilities for the product. John Maier, Director of Marketing Communication said, “Hart Dynamics’ entire operation is focused on the drumming community in general and the electronic drum kit market specifically. The DM Pro Kit will be better served under this new scenario. " (Hart Dynamics, 1-800-769-5335, www.hartdynamics.com.) The DMPro Drum Module will not be affected by this change and will still be a part of the Alesis Digital Drum Product line. Alesis also announced there would be targeted layoffs as part of this reorganization. While most of the cutbacks were centered in the company’s manufacturing and warehousing division, there were also limited cutbacks in the sales, marketing and administrative areas. The company also announced talks with prospective investors and business partners in an effort to ensure the product plan for 2001 is carried out on schedule. Jim Mack said, “Our current product plan is arguably the most aggressive in the company's history. These products represent the latest in Alesis proprietary chip technology. We felt that bringing in outside partners at this time would ensure that these new products and technologies can all come to market simultaneously rather than over the course of the next few years.” On the heels of a bold new marketing campaign dubbed, "The Re-Evolution of Music," Alesis recently introduced fourteen new products within a four month period. Among the new innovations is the groundbreaking trio of the A6 Andromeda 16 voice real analog synthesizer, the ADAT HD24 hard disk recorder and the ProLinear 820 Customizable DSP studio monitors.

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