Encore No More

New in Town

Start-Ups

Crosstown Moves

Deaths

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 (http://www.redherring.com). This month ITXC

was on the Hot 100 list for Upside magazine, selected from more than

800 nominations (http://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, 600

College Road East, Princeton 08540. Tom Evslin, CEO. 609-419-1500;

fax, 609-419-1511. Home page: http://www.itxc.com.

— Barbara Fox

Top Of Page
Encore No More

A potential turnaround for Encore Books & Music seemed

possible eight months ago, when Lauriat’s, the 126-year-old regional

chain that owns the company, brought in turnaround officer Matthew

Harrison to get the company out of Chapter 11. On Friday, June 11,

however, company officials announced to its landlord at the Princeton

Shopping Center that it is going out of business. "We’re selling

off the inventory in the store now," says John McNamara, chief

operating officer for Lauriat’s. Harrison, who had hoped to reduce

the firm’s hefty debt, resigned last week.

Encore Books is the second area bookstore to fold in a week. Rivergate

Books, the 10-year-old bookstore in Lambertville, announced it will

close on June 30. Janet Holbrook, the owner, attributed a drop in

sales to competition from online stores like Amazon.com.

The proliferation of book and CD stores online may not entirely explain

the closing of Encore, however. Oren Teicher, chief operating officer

of the American Booksellers Association, was quoted as saying that

Internet sales only account for two percent of book sales. He thinks

the problem is industry wide — books sales, he says, remain flat.

Within Princeton, however, book sales are still strong, as focus group

studies conducted under Harrison proved. "We realized that our

heavy niche was the heavy book buyers, people age 50 and over with

above average income, above average education, a variety of interests,

and time. A very small penetration of that market gives you a profitable

business," 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 out

of touch with the clientele, and that enhanced the appeal of Route

1 superstores like Barnes and Noble.

Ironically, "individualized service" was part of Harrison’s

vision for making the company a viable small book store, and getting

it out of debt by the first quarter of this year. He also closed one-third

of 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 would

be closing its doors for good, saying that it was still possible that

the store could be sold. Chris Hanington, general manager of the Princeton

Shopping Center, says that would be ideal. "It was a great use

of the space," she says. "Books and music are very important

in Princeton. It’s a big loss."

Once Encore’s property is turned over, however, the Princeton Shopping

Center can make good use of it. Hanington has already begun to market

it as one with the adjoining property, vacant since 1997 when Super

Fresh left town. "It’ll be a great location, much better location

than Super Fresh was, because now it will be an end-cap," she

says of the 38,000 square foot space. "That’s more attractive

to retailers."

— Melinda Sherwood

Top Of Page
New in Town

EPAm Systems, 29 Emmons Drive, Building G-50, Princeton

08540. 609-452-1701; fax, 609-452-1704. Home page: http://www.epam.com.

Founded in Belarus, Russia, seven years ago, this computer consulting

firm was originally named Effective Programming America. It had an

office in Marlton but moved in May to Emmons Drive, where it occupies

temporary space (1,700 feet) and will move to 3,600 feet. Ten workers

consult in sales force automation on PCs for various industries. The

programs are webcentric and adaptable for either Internet and intranet

use.

The spokesperson for the company declined to be identified or provide

further information, but the website lists such clients as Bally USA,

Colgate-Palmolive (in the United States and Paris), and the Belarus

office of the World Bank, for which it did a household expenditure

survey. Among its programs is a report viewer, which can interface

with SAP requirements.

Top Of Page
Start-Ups

Executive 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 operation

at Trenton-Mercer Airport. His competitor is Ronson Aviation, the

38-year-old company that until now, was the sole fuel and service

provider at the airport.

With 15 workers, Patterson aims to eventually offer turboprop aircraft

maintenance, charters, avionics repair, and aircraft sales. Patterson

also wants to offer maintenance for jets and commercial passenger

planes 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 Patterson

more than two years to develop the former Naval Air Warfare Center

and get past Federal Aviation Administration requirements.

Top Of Page
Crosstown Moves

Summit Asset Management, 47 Hulfish Street, Suite

420, Princeton 08542. Scott M. Ciccone, president. 609-275-1890; fax,

609-275-1892.

The investment advisory firm has moved from Suite 445 at Princeton

Meadows Office Center to the Palmer Square neighborhood. The former

president, Tina S. March, has been succeeded by Scott M. Ciccone.

Top Of Page
Deaths

James Barrillas, 33, on June 4. A carpenter, Barrillas

died as a result of injuries suffered from a fall at a construction

site on Bedens Brook Road.

Joel Spaeth, 61, on June 8. He was an architect and a

longtime principal with the Hillier Group on Alexander Road.

Marsha L. Abrams on June 11. She was an employee of Bloomberg

Financial 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 former

deputy attorney general and had been the defendant in a sexual harassment

suit.

Corrections or additions?


This page is published by PrincetonInfo.com

— the web site for U.S. 1 Newspaper in Princeton, New Jersey.

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