Corrections or additions?
These articles were published in U.S. 1 Newspaper on June 16, 1999.
All rights reserved.
Life in the Fast Lane: ITXC IPO
Being first with the most is working for ITXC Corp.
Ever since ITXC (Internet Telephony Exchange Carrier) was founded
in a home office on Library Place, Tom and Mary Evslin knew they would
take it public. Now it has more than 70 employees at 600 College Road
East, and it is the world’s largest wholesale Internet telephony network
(U.S. 1, September 15, 1997, and July 17, 1998).
Last year the firm hit the top 100 list of technology companies that
“will change the way business gets done” as published by Red
Herring magazine (https://www.redherring.com). This month ITXC
was on the Hot 100 list for Upside magazine, selected from more than
800 nominations (https://www.upsidetodoay.com.
Last week the other shoe dropped: ITXC filed with the Securities and
Exchange Commission for an initial public offering of common stock.
The only details disclosed in this preliminary statement are the prospective
underwriters: Lehman Brothers, CIBC World Markets, and First Analysis
Securities Corporation.
ITXC is capitalized to the tune of $33 million, and it received half
of that ($15 million) this March. Investors include Chase Capital
Partners, Flatiron Partners, Intel, Polaris Ltd., Spectrum Equity
Investors, and VocalTec Communications, all of whom also invested
in ITXC’s first round.
For its clients — which include traditional telephone companies,
new competitive carriers, pre-paid calling card companies, callback
companies, and other resellers — ITXC performs the service of
completing Internet calls, using a combination of traditional technology
and Internet service. ITXC is affiliated with Bell Atlantic, China
Telecom, Japan Telecom, and Korea Telecom. It has more than 113 “point
of presence” nodes in 38 countries and is adding five to seven
new locations per month.
Tom and Mary Evslin started their entrepreneurial careers by founding
a mainframe software firm in Vermont in the 70s. Then Tom, a Harvard
alumnus (Class of ’65), worked at Microsoft as a division general
manager, before moving to AT&T, where he jumpstarted AT&T’s Internet
initiative, AT&T WorldNet. This time around, the Evslins’ own company
might do very well.
ITXC: Internet Telephony Exchange Carrier, 600College Road East, Princeton 08540. Tom Evslin, CEO. 609-419-1500;fax, 609-419-1511. Home page: https://www.itxc.com.— Barbara FoxTop Of PageEncore No MoreA potential turnaround for Encore Books & Music seemedpossible eight months ago, when Lauriat’s, the 126-year-old regionalchain that owns the company, brought in turnaround officer MatthewHarrison to get the company out of Chapter 11. On Friday, June 11,however, company officials announced to its landlord at the PrincetonShopping Center that it is going out of business. “We’re sellingoff the inventory in the store now,” says John McNamara, chiefoperating officer for Lauriat’s. Harrison, who had hoped to reducethe firm’s hefty debt, resigned last week.Encore Books is the second area bookstore to fold in a week. RivergateBooks, the 10-year-old bookstore in Lambertville, announced it willclose on June 30. Janet Holbrook, the owner, attributed a drop insales to competition from online stores like Amazon.com.The proliferation of book and CD stores online may not entirely explainthe closing of Encore, however. Oren Teicher, chief operating officerof the American Booksellers Association, was quoted as saying thatInternet sales only account for two percent of book sales. He thinksthe problem is industry wide — books sales, he says, remain flat.Within Princeton, however, book sales are still strong, as focus groupstudies conducted under Harrison proved. “We realized that ourheavy niche was the heavy book buyers, people age 50 and over withabove average income, above average education, a variety of interests,and time. A very small penetration of that market gives you a profitablebusiness,” said Harrison last November.Encore’s greatest challenge was meeting the needs of that market.A shortage of inventory left many feeling that management was outof touch with the clientele, and that enhanced the appeal of Route1 superstores like Barnes and Noble.Ironically, “individualized service” was part of Harrison’svision for making the company a viable small book store, and gettingit out of debt by the first quarter of this year. He also closed one-thirdof Encore’s 110 locations, including stores in Plainsboro and Trenton,and instituted store-wide discounts.Although Encore is auctioning off its merchandise to liquidators,McNamara hesitated to give a final word on when the company wouldbe closing its doors for good, saying that it was still possible thatthe store could be sold. Chris Hanington, general manager of the PrincetonShopping Center, says that would be ideal. “It was a great useof the space,” she says. “Books and music are very importantin Princeton. It’s a big loss.”Once Encore’s property is turned over, however, the Princeton ShoppingCenter can make good use of it. Hanington has already begun to marketit as one with the adjoining property, vacant since 1997 when SuperFresh left town. “It’ll be a great location, much better locationthan Super Fresh was, because now it will be an end-cap,” shesays of the 38,000 square foot space. “That’s more attractiveto retailers.”– Melinda SherwoodTop Of PageNew in TownEPAm Systems, 29 Emmons Drive, Building G-50, Princeton08540. 609-452-1701; fax, 609-452-1704. Home page: https://www.epam.com.Founded in Belarus, Russia, seven years ago, this computer consultingfirm was originally named Effective Programming America. It had anoffice in Marlton but moved in May to Emmons Drive, where it occupiestemporary space (1,700 feet) and will move to 3,600 feet. Ten workersconsult in sales force automation on PCs for various industries. Theprograms are webcentric and adaptable for either Internet and intranetuse.The spokesperson for the company declined to be identified or providefurther information, but the website lists such clients as Bally USA,Colgate-Palmolive (in the United States and Paris), and the Belarusoffice of the World Bank, for which it did a household expendituresurvey. Among its programs is a report viewer, which can interfacewith SAP requirements.Top Of PageStart-UpsExecutive JetPort of New Jersey, 1440 Parkway Avenue,Box 7794, West Trenton 08628. 609-883-2146; fax, 609-883-5627.After two years of getting ready Tom Patterson is finally — maybe– due to open his $10 million full-service fixed base operationat Trenton-Mercer Airport. His competitor is Ronson Aviation, the38-year-old company that until now, was the sole fuel and serviceprovider at the airport.With 15 workers, Patterson aims to eventually offer turboprop aircraftmaintenance, charters, avionics repair, and aircraft sales. Pattersonalso wants to offer maintenance for jets and commercial passengerplanes and 24-hour customs services.A graduate of Delaware Valley College in Doylestown, Class of 1974,Patterson sold his Trenton-based business, Casino Events Marketing,and sunk that profit into Executive Jetport. It has taken Pattersonmore than two years to develop the former Naval Air Warfare Centerand get past Federal Aviation Administration requirements.Top Of PageCrosstown MovesSummit Asset Management, 47 Hulfish Street, Suite420, Princeton 08542. Scott M. Ciccone, president. 609-275-1890; fax,609-275-1892.The investment advisory firm has moved from Suite 445 at PrincetonMeadows Office Center to the Palmer Square neighborhood. The formerpresident, Tina S. March, has been succeeded by Scott M. Ciccone.Top Of PageDeathsJames Barrillas, 33, on June 4. A carpenter, Barrillasdied as a result of injuries suffered from a fall at a constructionsite on Bedens Brook Road.Joel Spaeth, 61, on June 8. He was an architect and alongtime principal with the Hillier Group on Alexander Road.Marsha L. Abrams on June 11. She was an employee of BloombergFinancial Services. A memorial service will be Saturday, June 19,at 4 p.m. at the Kimble Funeral Home in Princeton.Richard T. Carley 52, on June 11. He was the state’s formerdeputy attorney general and had been the defendant in a sexual harassmentsuit.Corrections or additions?This page is published by PrincetonInfo.com— the web site for U.S. 1 Newspaper in Princeton, New Jersey.
