Melville, NY – Pulvermedia, Inc. is undergoing a restructuring that included some layoffs March 31; however company officials denied rumors the company had been shut down or was about to be acquired.
Jason Chudnofsky, CEO of the company’s Events Group, told Trade Show Executive that Pulvermedia was in a “silent period” during which there would be no public discussion of the details of the reorganization. He said, “Right now, it’s business as usual with some reorganizing taking place” and that the company remained “focused on our upcoming events.”
Pulvermedia organizes the VON events that serve the Voice over Internet Protocol (VoIP) industry.
“We are restructuring our financing and organization and, yes, had layoffs to deal with the economy and what we felt could be challenging times for the industry,” Chudnofsky said. “Unfortunately, all this came at one time and created the rumors that we are all reading.”
The rumor mill originated among blogs dedicated to the high-tech and VoIP industries. They pointed to unconfirmed reports that Pulvermedia was having difficulties with its financial backers.
In the March 13 10-K filed with the Securities and Exchange Commission, TICC Capital Corp. cited a $10.6 million loss in its investment in Pulvermedia. The document said the losses from Pulvermedia and two other portfolio companies was “in part attributable to worsening economic conditions in the industries in which those portfolio companies operate.”
The filing said specifically that Pulvermedia had been hurt by consolidation within the telecommunications industry and was “projecting a substantial reduction in its business.”
“In addition, the likelihood of a recession is also having a dramatic impact on the number of attendees at the company’s shows,” the document continued. “The company is attempting to raise additional equity and exploring other strategic options.”
Reach Jason Chudnofsky at (631) 961-1100 or Jason@pulvermedia.com