In a move that it says will “substantially accelerate [its] path to profitability,” Real Media made a number of announcements today, all pointing at a large-scale company-wide restructuring
Most notably, the company’s president and chief executive, Chris Neimeth, has left the New York-based company to “pursue other interests,” according to a statement from Real Media.
Walter Annasohn, who comes from to Real Media from PubliGroup –a major shareholder — will replace Neimeth. Annasohn formerly served as senior vice president for international sales at PubliGroupe, a Swiss print advertising rep firm, and also sat on Real Media’s board of directors.
Annasohn said he would be “cutting costs in several areas” to accelerate the company’s path to profitability, but declined to disclose specific plans.
Real Media also said today that it has formally withdrawn its IPO filing, citing market conditions.
The company, which filed in February to go public with the aim of raising $71 million, has recorded mounting expenditures despite increasing revenue. In 1999, the company posted a loss of about $40.1 million after expenses, on revenues of more than $55 million. As of January 1, the company had an accumulated deficit of $14.2 million.
In September 2000, the company landed $30 million in financing from PubliGroup and another investor, Advance Internet, but to date has not yet given indications of how the industry-wide downturn in revenues have impacted the firm’s bottom line.
The company also announced that it had received offers of an unspecified amount of financing from PubliGroupe and Los Angeles-based equity investment firm The Destination Group.
“I am very excited about the opportunity to lead Real Media at this important juncture in its development,” Annasohn said. “With the help of PubliGroupe, The Destination Group and Advance, we will ensure that it is successful as it transitions from an important global Internet advertising industry pioneer into a highly-profitable and successful long-term global winner in the marketplace.”