Network Imaging Eliminates Stock Dividend

In a push to return to profitability, Network Imaging's (Herndon, VA) shareholders have voted to eliminate the company's current $3.2 million cash dividend. The extra funds "could be much better spent on sales and marketing," said chairman and CEO Jim Leto. Network Imaging will modify the terms and conditions of its Preferred A stock to free up the cash. "For a company that is not yet profitable, the expense has been a major drain on our resources," said Leto. "This will have a major positive effect on our earnings and earnings per share." The elimination of the dividend is the final phase of a three-year restructuring program that has eliminated eleven non-strategic businesses, refocused the company's attention to two product lines, and placed an increased emphasis on sales and marketing.