USi Names Former Scient, IBM Exec as COO
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Enterprise ASP USi on Wednesday announced that it has appointed Stephen A. Mucchetti to the newly-created position of Chief Operating Officer.
"With our continuing growth and success, as well as the increasing adoption of the ASP model, now is the right time to bring on someone of Steve's stature who will provide us with the operational leadership needed to expand our business," said Andrew A. Stern, USi chairman and CEO. "It's an exciting time for our industry, and I look forward to working closely with Steve to define and implement new approaches for application management that reflect the significant changes that the IT industry is currently undergoing."
Mucchetti has previous experience as the CEO of Scient Inc. and the General Manager for IBM's Global Telecommunications & Media Solutions Unit. Mucchetti will assume responsibility for USi's day-to-day operations with a specific focus on enhancing USi's service metrics and developing new operating strategies.
"As the recognized leader in outsourced application management services, USi boasts a solid financial model and an impressive enterprise client base," Mucchetti said. "I look forward to leading our efforts to enhance the business value we provide our clients, while increasing the efficiency with which we deliver our services."
USi this week was also named by IT research firm IDC in a recent competitive analysis report as the largest enterprise ASP. The report, in which IDC evaluated companies based on market share as well as nine other parameters, noted that USi has more enterprise ASP revenue than any company featured within the report. IDC selected the most influential enterprise ASPs based on revenue, visibility, and mindshare to be profiled in this report.
This recognition follows continued sales success for the company within its recently concluded second quarter. Additionally, the company reported that it was again EBITDA and Operating Cash Flow positive during this period. USi initially reached EBITDA breakeven in the third quarter of 2001 and operating cash flow breakeven the following quarter.
"The last 12 months have been eventful for the ASP market. Today, enterprise ASP services are gaining ground with mainstream companies at a rate that is impossible to ignore," said Amy Mizoras, Program Manager, Software Pricing, Licensing, and Delivery, IDC. "USi has more enterprise ASP revenue than any other company in IDC's 2003 Enterprise ASP Leadership Grid. What's more, USi has improved its position in 2003 with the successful integration of Interpath and continued improvements to its financial position."
The company recently signed new contract agreements with specialist engineering company Morgan Crucible, Micromuse Inc., The Conference Board, the world's leading research and business membership organization, and others including a leading Enterprise Spend Management solutions provider, and one of the world's largest management and human resources consulting firms.
USi also continued to successfully leverage its existing client relationships through contract upgrades from a number of enterprise clients including Coventry Health Care, Intralinks Inc., PolyOne Corporation, VISA U.S.A. Inc., and Watson Wyatt & Company.
During the second quarter, USi also added to its Ariba client portfolio by completing the acquisition of the assets of CoreHarbor, a managed service provider targeting the enterprise spend management market. This combination resulted in the industry's largest ASP practice dedicated to the support of Ariba applications.
"Our success underscores continuing interest in the proven business value that USi brings to the table," said Stern. "USi's clients realize significant cost savings and superior performance on a daily basis, and our long-term focus on innovation allows us to continually enhance the business value our clients derive from the applications we deliver."