Exult Touts Bank of America Work Amid Stock Sale
Enfrastructure Promotes Executives; Datum Working with Britain’s nCipher
TECHNOLOGY
by Andrew Simons
Banc of America Securities, whose parent is one of Exult Inc.’s biggest customers, recently sold another million shares of the Irvine software maker for what it called “portfolio-driven reasons.”
Exult has a major deal with Bank of America Corp. to provide electronic human resources services. To an outsider, it could seem as though Bank of America knows of issues with Exult’s service and software, dumping its shares in response.
But Exult officials took pains to get a favorable quote from BofA in a recent press release saying Exult’s work with the bank had been impeccable.
“We are pleased with Exult’s operational performance,” said Craig Buffie, a senior vice president at Bank of America. “The recent payroll conversion was exceptionally well executed, and together with the recruiting services contract we signed last year, Exult has fully completed all process transition activities in a timely and excellent fashion. Bank of America remains firmly committed to the success of this innovative relationship.”
The sale might not have turned heads if BofA hadn’t already sold another heap of Exult shares in December. In that incident, the U.S. Postal Service, which was scrutinizing mail to government agencies because of the anthrax attacks, delayed delivery of word to the Securities and Exchange Commission that Banc of America Securities intended to dump 1.3 million Exult shares. It didn’t arrive until three weeks after the sale.
The notice finally posted a day after Exult said its $22 million loss from the year-ago quarter had narrowed to $4.5 million and sales had increased 179% to $89.4 million. But investors paid attention to the BofA sale. Exult’s stock declined some 35% on the news.
It’s worth noting that on Dec. 5, the day BofA sold its first round of shares, Exult’s stock price scarcely blipped. It wasn’t until people heard of the sale a month later that the stock fell.
Not this time around. Exult’s shares started plunging April 23,losing a third of their value in 10 days,before word of the second BofA sale was widely known. Then when investors noticed news of the sale in an Exult press release, they fell even further.
New Enfrastructure Officers
Still no word on the deal that Aliso Viejo-based Enfrastructure Inc. indicated would expand its business running campus-like facilities. But a couple of appointments could presage some internal adjustments as the company readies itself for planned growth on the East Coast.
The company recently appointed company insider Victor Memenas as the vice president of operations. It also hired Brady Butcher, a former broker with CB Richard Ellis Services Inc., as director of sales.
“Vic and Brady have both demonstrated their extraordinary knowledge of the commercial real estate and (technology) markets, and are experts at making the client experience the best it can possibly be,” Chief Executive James Watson said. “Their increased responsibility is a direct result of their commitment to the Enfrastructure model of providing superior services and infrastructure to growing companies.”
A month ago, Watson said the company was near a deal to expand to the East Coast sometime in May or June. Watson declined to offer specifics.
Enfrastructure had planned to open campuses in New York, Northern California and Colorado when it first opened in 2000.
The company’s Aliso Viejo campus is 78% full. Enfrastructure executives project the campus will be 90% full by July.
Datum, nCipher Team Up
Irvine’s Datum Inc. and Britain’s nCipher PLC recently signed a deal in which Datum’s time stamping technology is set to be included in nCipher’s security modules. Using Datum’s software, the modules will ensure the accuracy of time-sensitive data and operations, the companies say.
Datum, which is set to be bought by San Jose-based Symmetricom Inc., makes high-precision timekeeping devices, atomic frequency sources and test and measurement gear based on its quartz and rubidium oscillators and cesium standards.
“NCipher, one of the most trusted names in security will provide a valuable component in our future products,” said John Bernardi, a president with Datum. “NCipher’s products and reputation have been proven to offer the highest level security, reliability and flexibility that our customers require.”
The two companies also plan to jointly market their products, once Datum’s technology is inserted into nCipher’s modules.
Conexant’s New Management
Only a couple months after Newport Beach’s Conexant Systems Inc. finished breaking apart into four separate businesses, the company named new top execs at the company that will retain the Conexant name.
F. Matthew Rhodes, the former vice president of Conexant’s personal computing division will be the presiden,t and Dan Marotta, former vice president of Conexant’s information and entertainment division will be the chief operating officer. Dwight Decker will stay as Conexant’s chief executive.
“Matt and Dan are Conexant veterans with a proven record of creating and executing winning technology and product strategies,” Decker said.
