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Motricity Shutters Asian Operations; India?

Mobile data company Motricity has shuttered its Asian operations, as a part of its reorganization to (in PR speak) “capitalize on changing customer and market conditions”, and will focus on servicing carriers in North America, and focus on mobile advertising and enterprise services. The Seattle Times reports that around 135 jobs will be cut in India too. Mohit Rampal, who had joined Motricity as Managing Director (South Asia) in July 2010, appears to have left the company this month, according to his LinkedIn profile, and is now an independent consultant. Remember that the company had inked a mobile data deal with Reliance Communications back in October 2010, for deploying its mCore platform for managing content, marketing and commerce, and in June last year, it opened a data center in New Delhi. We’ve written to Motricity for more details on its Indian ops, and will update in case we get a response.

The company, for the third quarter last year (2011), reported a net loss of $174.5 million, compared with net income of $3.3 million for the third quarter of 2010; this included $162.3 million of impairment, of which $123.5 million was related to goodwill and $38.8 million was related to various fixed and intangible assets, and $4.6 million in restructuring charges. Its revenues were $30.4 million as compared to $37.9 million in the third quarter of 2010. Of the $30.4 million, Mobile Marketing and Advertising revenue was $7.1 million.

Fool.com contends that the company made the mistake of ignoring the smart phone market and going after the feature phones business, because of which they underperformed in the US. Read:

This Year Was a Bloodbath for Motricity
– What’s Wrong With Motricity?



Motricity announcement (source)

BELLEVUE, Wash., Jan. 19, 2012 (GLOBE NEWSWIRE) — Motricity (Nasdaq:MOTR) announced today that it has taken significant steps to reorganize the company in order to capitalize on changing customer and market conditions. As part of the realignment, the Company has decided to close its operations in Asia. This shift will enable Motricity to concentrate efforts on the burgeoning opportunity the Company sees in the mobile advertising and enterprise space, while continuing to provide focused service to the largest carriers in North America.

In addition to hiring sales resources to focus on market opportunities in North America and expand its penetration into carriers, the Company is also investing in product development. Work is underway on the next version of products designed to expand Motricity’s current suite of solutions and services.

“The past several months have been a period of transformation for the company,” said Jim Smith, interim chief executive officer of Motricity. “We’ve made considerable changes which I believe will lay the foundation for long-term success and reignite growth. However, in order to achieve our business objectives, we’ve had to make some difficult choices, including streamlining and exiting areas of our business that were no longer strategic or profitable. I believe the strategy that we’ve since adopted now aligns with the strong market opportunity that exists in mobile enterprise and advertising.”

Throughout this period of transition, Motricity has remained committed to driving growth, accelerating technological innovation and increasing the speed to market for its products and services.

“As a company, we have made significant adjustments to our cost structure, organization and strategy. Given our depth of talent, rich history in mobile and strategic focus on mobile enterprise and advertising, I’m confident that the changes we’ve instituted will help deliver enhanced shareholder and customer value,” said Smith.

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