Dublin-based technology firm Servecast is refocusing its business and cutting costs in a bid to make an operating profit by December 2002, its new chief executive said yesterday.
Ms Pat Chapman-Pincher, who joined Servecast from WorldCom last month, said the firm had closed its Spanish office and would concentrate on Northern Europe.
"We will focus on a smaller number of Northern European countries including Germany, the UK, Ireland, Sweden and Holland," said Ms Chapman-Pincher.
Servecast, which raised $40 million (€44.7 million) last year from investors that included Mr Denis O'Brien and Formula One entrepreneur Mr Eddie Jordan, lost almost £4 million (€5.1 million) during 2000, according to recently filed company accounts.
No revenue figures were included in the papers filed with the Companies Office and Ms Chapman-Pincher declined to disclose the firm's current turnover.
However, she said Servecast was not alone in overestimating projected revenue over the past 12 months. Most companies had scaled down estimates by between 25-50 per cent, she added.
Ms Chapman-Pincher said the firm had cut its cost base to match its revenues but she stressed that the company had managed its cost very well up to this point.
At its current cash-burn rate, Servecast will not run out of money until 2003. Despite its relatively cash-rich position, the company received a £300,000 research and development grant from Enterprise Ireland this year.
Servecast, which provides streaming media services to corporates and sports/entertainment firms, is suffering from a slower-than-expected rollout of high-speed internet technologies.
"The US is better than Europe but even there there is the last mile issue, which is slowing the take-up of streaming media services by consumers," said Ms Chapman-Pincher.
Servecast is refocusing its business on the enterprise sector and developing a range of new products to target the corporate sector, she said. "Before streaming media was seen as an entertainment medium. . . but what I think we won't be able to do is replace television," she said. "We want to move into the enterprise sector, although we will keep the partnerships we have with sport."
Servecast will aim to increase its corporate share of its revenues to about 70 per cent from its current level of about 30 per cent.
In January it will introduce a streaming media product targeted at the e-learning sector, which Ms Chapman-Pincher describes as "huge". The company has already signed deals with corporates such as Deutsche Telekom for the streaming of corporate results.
Other products Servecast will market include internal communications services and an ability to connect corporates with their suppliers.
Ms Chapman-Pincher, who was headhunted for the position, said she joined Servecast because it intrigued her.
"It had the right technology, was a good company with huge growth possibilities."
Mr Kevin Quinn, founder of Servecast and a significant shareholder in the firm, left the company last month with the arrival of Ms Chapman-Pincher. However, he is continuing to do some consultancy work with the firm.
Ms Chapman-Pincher said Servecast, which employs 70 staff in five countries, would grow its sales staff next year, although the firm is not expected to move into any new countries.
