Motricity replaces interim CEO Smith with mobile media chief Stalzer
Motricity (NASDAQ:MOTR) is parting ways with interim CEO Jim Smith. Richard Stalzer, president of Motricity's Voltari mobile media unit, is now CEO; in addition, Chief Financial Officer Nathan Fong will continue in that position and assume Chief Operating Officer duties, while General Counsel Richard Sadowsky has also been named Chief Administrative Officer.
Smith--appointed Motricity president and COO in early 2009--took the interim CEO reins in August 2011 following the departure of founder and CEO Ryan Wuerch, who launched the firm in 2001 under the PowerByHand brand and now serves as CEO of T-Mobile USA MVNO Solavei. Earlier this year, Motricity announced plans to restructure its business, shifting away from its signature mobile content and data solutions to focus on the mobile advertising and enterprise space.
Motricity is currently rolling out V-Connect, a predictive analytics platform designed to help mobile advertisers more effectively identify and target audience demographics prior to launching campaigns. Motricity is also introducing Serrano Mobile, a cloud-based mobile marketing platform including campaign development, management and performance measurement tools. The firm continues providing value-added mobile data services to operator partners as well.
"After restructuring the business, launching new products and incubating a clear future strategic direction, this is a natural transition to hand-off to the new leadership to execute," Smith said.
This month, Motricity reported third-quarter 2012 revenues of $23 million, down from $24.8 million in the year-ago quarter but up from $22.2 million in the previous quarter. Operating income was $1.4 million, compared to $700,000 during the second quarter of 2012 and operating losses of $141.7 million during the third quarter of 2011. Motricity entered the current quarter with $19 million of cash and cash equivalents and said it expects to receive net proceeds of approximately $28 million from a recent rights offering issuance of Series J preferred stock shares and common stock warrants.
Moving forward, Stalzer, Fong and Sadowsky will report directly to Motricity's Board of Directors. The five-person board includes Brett Icahn, son of activist investor Carl Icahn, who owns approximately 16.5 percent of Motricity's outstanding shares; Hunter Gary, who is married to the daughter of Icahn's wife, also sits on the firm's board.
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