NetNumina Lays Off 23
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The slowing Net economy has claimed another victim from the professional Web services sector, as privately held NetNumina Solutions of Boston has laid off 23 of its 200 employees.
But Steve Richards, NetNumina's vice president and chief financial officer, said the company expects revenue growth, while still strong, to slacken in 2001 from 270 percent growth last year to 150 percent.
"We've still got a significant amount (of venture cash) left, and we're still growing on the revenue front," Richards said. "But we're getting back to a traditional business model and focusing on proving our profitability by the middle of this year. (The layoffs) will allow us to focus resources and become more nimble."
NetNumina failed for the first time to turn a profit in 2000, as it rushed to add employees and open a New York office, backed in part by its venture cash. The 3-year-old company's venture backers include Greylock and TA Associates, along with Allaire Corp., BEA System Inc. and BancBoston Ventures.
While known for work with government entities like Massport, NetNumina has from the start looked to provide Web integration services for Fortune 500 clients like Citibank Corp. and State Street Global Advisors.
Richards said the slowing Net economy has meant "not a slower deal flow, but a more competitive environment," since competing Net consultancies and integrators have largely stopped chasing dot-com clients to focus on larger corporations.