Considering that Xpedior’s major stockholder and revenue provider, PSINet, is presently seeking to dispose of the e-Business provider’s shares, and even sell its own, to deal with finanical problems associated with its ill-timed venture into e-Business, the future was looking fairly gray for Xpedior, especially after posting a disappointing 3Q.
But today, it found a needed lifeline of new business by announcing an expanded alliance with PC giant IBM.
Building on initiatives begun with IBM in 1999, Xpedior will create a Solutions Initiative Organization to develop industry specific templates optimized for IBM software products and technology, focusing on solution areas including: e-Commerce, Knowledge Management, Wireless, Security, and Business Intelligence.
This alliance will focus on IBM’s websphere software platform including webSphere Application Server, MQSeries and VisualAge for Java and result in faster deployment times for the companies’ mutual customers, while providing the level of customization required by today’s e-Business clients.
This will allow Xpedior to accelerate its ability to deliver e-Business solutions to customers throughout our worldwide market space.
“We are pleased to announce the renewal and international expansion of our relationship with IBM. We believe that our continued joint commitment will generate a substantial revenue stream and drive new business opportunities for Xpedior,” said Vince Verna, Xpedior’s CEO.
The alliance is welcome news after a disappointing 3Q for Xpedior. The company’s revenue had decreased steadily and its loss of $0.47/share was much higher than analysts’ estimated loss of $0.02/share.
Its majority shareholder PSINet contributed about $30 million to Xpedior, which ultimately caused a chain reaction, creating problems for itself.
During the past quarter, Xpedior has seen a corporate reorganization, key staff changes and a CEO resignation.