PVI’s Mexico Deal

Expansions

Crosstown Move

Name Change

Corrections or additions?

These articles were

prepared for the December 20,

2000 edition of U.S. 1 Newspaper. All rights reserved.

Life in the Fast Lane: RCN

Two years ago RCN was hiring five new people a day;

last week it gave pink slips to 70 workers in Carnegie Center, 10

percent of its workforce. It may also relinquish up to a quarter of

its Carnegie Center space. This news came on the heels of RCN’s

announcement

that it had halted construction on its Princeton Pike headquarters

(U.S. 1, December 6).

Though the company’s plummeting stock price is an obvious trigger

for cutting back, there is also a strategic reason, says Nancy Bavec,

RCN’s spokesperson. She says that RCN wants to move decision making

closer to the customer and decentralize. "RCN’s markets have grown

to a size where we can make better, faster decisions in the market

itself."

RCN continues to rollout fiberoptic lines with bundled cable

television,

high-speed Internet, and telephone services to seven of the top ten

residential markets in the United States but has drawn back from

entering

new markets. RCN is now operating with varying degrees of market share

in New York, Boston, Washington, Philadelphia, Chicago, Los Angeles,

and San Francisco. (It had contemplated moving into Houston, Miami,

or Denver.)

Many staff functions will move to the outlying markets "where

they will have greater accountability for profit & loss statements

in their areas," Bavec says.

Next year’s cash needs for RCN are roughly equivalent to the entire

investment made in 1999 by Microsoft co-founder Paul Allen. Though

the company reportedly has $2.7 billion in available cash, it will

spend more than half of it, $1.6 billion, in 2001.

RCN is looking for sublet tenants for about 29,000 square feet in

Carnegie 214 and 45,000 feet in Carnegie 202. RCN currently occupies

approximately 200,000 square feet at the Carnegie Center, including

60,000 square feet at its Carnegie 105 headquarters plus some space

sublet from Raytheon. RCN has also relinquished its 21,000 square-foot

call center at a Nexus Properties building on Brunswick Pike.

"We are taking a look at the business in a conservative way,"

says Bavec. "If the capital markets don’t open up for a while,

we need to consider how we can manage the business, continue to grow,

and fund the business appropriately."

RCN Corporation (RCNC), 105 Carnegie Center, Suite

300, Princeton 08540. David C. McCourt, CEO. 609-734-3700; fax,

609-734-7551.

Www.rcn.com.

Top Of Page
PVI’s Mexico Deal

Latin American broadcasters are more adventurous than

those in this country, says Dennis Wilkinson, president and chief

executive officer of Princeton Video Image (PVI). PVI has just bought

its most successful client/licensee, Mexico City-based Publicidad

Virtual, the leading revenue producer in the virtual advertising

business.

The transaction cost PVI 21 percent of its stock, and the Mexican

company now owns 25.6 percent of PVI’s shares. The deal is expected

to close March 31.

Among the clients for PVI’s Emmy-winning L-VIS System, an electronic

video insertion system, are CBS for the virtual lines at the National

Football League’s games; ads in back of home plate for the Phillies,

the Padres, and Sunday night games on ESPN; virtual billboards at

motor races for the Indy racing league; the X games for ESPN; overseas

soccer games in Brussels and the Netherlands; and some golf matches.

PVI has nearly doubled in size since Wilkinson came two years ago,

and it now has 71 employees at 25,000 square feet in two locations

on Princess Road. The buy will add $10 million in profitable revenue

to PVI, Wilkinson says, and help PVI conquer other Spanish-language

markets. Publicidad Virtual currently provides virtual advertising

services in Latin America for clients such as Visa, Volkswagen and

Nokia.

Mexican advertising companies, Wilkinson says, "are very

adventurous,

very open in the way they approach things. They experiment at a more

rapid pace." Broadcasters in this country are slower to adapt

to new technology, he says, using the word "provincial."

Wilkinson’s view: "It’s a business model issue. It’s new. It’s

different. It’s pushing the envelope."

Top Of Page
Expansions

Expert Plan Inc., 50 Millstone Road, Building 400,

Suite 100, Cranbury 08512. Winthrop Cody, owner. 609-394-0606; fax,

609-918-1328. Home page: www.expertplan.com.

Expert Plan, a company that started with 10 people and 900 square

feet at the Trenton Business and Technology Incubator on South Broad

Street, has moved up and out to Windsor Corporate Park, where it has

18 full-timers and 7,270 square feet. It is a web-based application

service provider for Internet-based retirement planning services (U.S.

1, March 15, 2000).

Cody had been CIO at the Copeland Companies, the retirement planning

subsidiary of CitiGroup/Travelers. C.R. Chandrasekar, director of

internet development, had developed object-oriented global systems

for Morgan Stanley and had also worked at the Copeland Companies.

The company offers large financial firms an "efficient and

adaptable"

technology to service retirement plans for small to mid-sized

companies

— online 401(k)s, 403(b)s, and 457s. "Traditional

services,"

says Winthrop Cody, the founder, "have high administrative fees

and find it difficult to adequately serve smaller companies. The

Internet

allows us to focus on good service at a reasonable cost."

Ken Clark International, 2000 Lenox Drive, Suite

200, Lawrenceville 08648. Kenneth Clark, president, CEO. 609-308-5200;

fax, 609-308-5255. Home page: www.kenclark.com.

Ken Clark moved his executive search business from 9300 square feet

at Independence Way to 17,000 feet on Lenox Drive and this

headquarters

now houses 35 employees. The company has offices in Singapore, Paris,

London, Dusseldorf, and Newport Beach, and it is opening offices in

Switzerland and Japan. It does high-level retained executive searches

for the healthcare, scientific, consumer, and industrial products

and services industries.

Top Of Page
Crosstown Move

New Jersey State Association of Chiefs of Police,

830 Bear Tavern Road, Suite 105, West Trenton 08628. Mitchell C.

Sklar,

executive director. 609-637-9300; fax, 609-937-9337.

The state police association will move from 777 Alexander Road on

January 1. The new address, phone, and fax, are as listed.

Top Of Page
Name Change

Nextera Enterprises (Sibson & Company), 600

Alexander

Park, Suite 208, Princeton 08540. Donald Gallo, principal.

609-520-2700;

fax, 609-520-0369. Home page: www.sibson.com.

Sibson & Company expanded last summer from the Carnegie Center to

24,000 square feet at Alexander Park, and now changes its name to

Nextera Enterprises, its owner as of two years ago. Nextera also has

Lexecon and Nextera Interactive as separate business units.

"Collaboration

among these groups has led to a diverse team of consultants with

services

that are particularly attuned to these times of great change,"

says Janet Dow, market relations manager. "We are approaching

the marketplace as a unified company with more than 600 consultants

who have deep and functional expertise in human capital and technology

solutions."

Corrections or additions?


This page is published by PrincetonInfo.com

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

Facebook Comments