InPhonic: Difference between revisions
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[[Image:Wireflylogo.gif|thumb|125px|Wirefly's logo.]] |
[[Image:Wireflylogo.gif|thumb|125px|Wirefly's logo.]] |
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'''InPhonic Inc''' ([[NASDAQ]]: INPC) is an [[United States|American]] company which sells wireless services and devices [[online]], both through its [[electronic commerce]] site '''Wirefly''' and through private labeled websites it creates and manages for online [[retail]]ers. InPhonic was founded by its previous CEO David Steinberg. |
'''InPhonic Inc''' ([[NASDAQ]]: INPC) is an [[United States|American]] company which sells wireless services and devices [[online]], both through its [[electronic commerce]] site '''Wirefly''' and through private labeled websites it creates and manages for online [[retail]]ers. InPhonic was founded by its previous CEO David Steinberg. of and |
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On November 8, 2007, InPhonic filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The filings were made in the U.S. Bankruptcy Court for the District of Delaware. InPhonic has obtained a debtor-in-possession financing facility which will give the company the financial resources it needs to operate under Chapter 11 and reorganize. |
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The company was modeled after sites like Expedia, gathering information from companies into a single site to help customers find deals by comparing services and prices. Wireless carriers do business with InPhonic because acquiring a customer through the company can be less expensive than traditional marketing approaches designed to generate sales at a brick-and-mortar store. InPhonic, in turn, receives a commission from carriers for each new account generated, once the customer meets a number of criteria. In general, this market is expanding; third-party activations now represent nearly 50% of all newly acquired subscribers, industry-wide. |
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The company's central online storefront, Wirefly.com, has received a number of Internet awards, including [[Forbes magazine]]'s "Best of the Web" for 2004 and Keynote System's "Best In Overall Customer Experience" in 2005. |
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In addition to operating Wirefly.com, InPhonic powers the technology platform and fulfillment system of 6,000 other private label cell phone sales Web sites, according to company spokesman Tripp Donnelly. In early 2006, the firm claimed that it was the largest third-party online cell phone retailer in the US, accounting for one-third of the market, and that it sold 850,000 cell phones in 2005 alone. In June 2006 the company said that it had completed more than 2.5 million cellphone activations in the past three years. |
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The company is headquartered in [[Washington, D.C.]] and maintains technology and operations centers in [[Largo, Maryland]] and [[Reston, Virginia]]. |
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==Financials== |
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In September 2001, the company closed a $19 million Series D round of capital financing headed by Core Capital Partners. The investment also included new investors McAndrews & Forbes, First Analysis, Spring Capital and Wynnefield Capital. All previous investors -- including Sculley Brothers Investments, CMS Financial Services, and Mid Atlantic Venture Funds -- participated as well. In 2003, Technology Crossover Ventures invested an additional $56 million in the company. |
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The company went public in November 2004. The company raised $108.9 million through its initial public offering. The IPO was InPhonic's second attempt to tap the public markets; the company filed to go public in 2002 but canceled the offering because of stock market conditions at the time. |
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In November 2006, Goldman Sachs one of InPhonic’s largest shareholders, made the company a proposal to provide it with $100 million in debt financing, part of which InPhonic used for a large stock buy-back [http://www.forbes.com/personalfinance/2006/10/11/inphonic-goldmansachs-wireless-pf-guru_in_nh_1011unwiredportfolio_inl.html?partner=links]. |
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==Acquisitions== |
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InPhonic expanded its business interests in 2001, absorbing several tech companies which specialize in software and content management on mobile platforms. In January, it acquired Reason, Inc. for its expertise with device and management tools; in early October, the company bought a Durham, NC-based company Gadgetspace that develops software and services designed to extend large-scale corporate applications to wireless devices; and in November, it added Skyware Group, a New York developer of custom wireless applications, for an undisclosed amount of cash and stock. At the time, industry analysts pointed to all three additions as indicative of InPhonic's plans to grow into a multi-dimensional wireless company. |
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In 2002, InPhonic built its wireless distribution channels by buying Simplexity, Inc. for $20 million in stock and cash. The following year, the company maintained its aggressive acquisition strategy when it bought mobile marketing firm Avesair, signaling a move into mobile ad messaging and delivery. |
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In January 2005, InPhonic bought rival A1 Wireless for $10 million, and a few months later it purchased VMC Satellite, a player in the satellite TV industry, for $11 million. |
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== Partnerships and affiliates == |
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InPhonic's has established relationships with a range of e-commerce partners to provide wireless activation services. Its partners include high-profile brands such as [[Radio Shack]], [[BestBuy]], [[Overstock.com]], [[Buy.com]] and [[AOL]]; industry players like Cognigen Networks and Intelisys,; and major U.S. carriers [[Verizon Wireless]], [[Cingular]], [[Sprint Nextel|Sprint]], [[T-Mobile]], [[Alltel]] and others. InPhonic also runs fulfillment for [[original equipment manufacturer]]s like the [[Motorola]] and LG brands. |
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A deal signed with [[Disney]] in April 2006 was the first deal for the company's mobile virtual network enabler (MVNE) division since the company shed its own [[mobile virtual network operator]] (MVNO), Liberty Wireless, in 2005. |
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InPhonic works with smaller sites through the LinkShare Affiliate Program [http://www.wirefly-affiliate.com/], paying commissions to these websites when their readers go to InPhonic's site. |
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In April 2006, InPhonic finalized a partnership with [[Amazon.com]] to become Amazon's first third-party provider of wireless products [http://www.ecommercetimes.com/rsstory/50072.html]. |
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InPhonic's online storefront Wirefly.com announced its sponsorship of the [[Wirefly X Prize Cup]] in September 2006. The event showcases space-related technology and innovation in the private sector, and features rocketry exhibitions and a series of monetary prizes. |
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On Thursday November 8, 2007, InPhonic filed for Chapter 11 Bankruptcy. The shares of this company fell to $.06 per share in late afternoon trading. |
On Thursday November 8, 2007, InPhonic filed for Chapter 11 Bankruptcy. The shares of this company fell to $.06 per share in late afternoon trading. |
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Revision as of 18:00, 5 December 2007
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| Company type | Public (NASDAQ: INPC) |
|---|---|
| Industry | Wireless |
| Founded | 1999 |
| Founder | David A. Steinberg |
| Headquarters | Washington, DC , USA |
Area served | USA |
Key people | David A. Steinberg, John Sculley, Jack Kemp, Ira Brind, Lawrence E. Harris, Blake Bath |
| Products | Cell phones and wireless plans |
| Revenue |  $320.5 million USD (2006) |
 $38.2 million USD (2006) | |
Number of employees | > 1,000 |
| Subsidiaries | Wirefly.com |
| Website | www.inphonic.com |
InPhonic Inc (NASDAQ: INPC) is an American company which sells wireless services and devices online, both through its electronic commerce site Wirefly and through private labeled websites it creates and manages for online retailers. InPhonic was founded by its previous CEO David Steinberg. Its board of directors once included former Vice-Presidential candidate Jack Kemp and technology/marketing guru John Sculley (of Pepsi Co and Apple Computer fame).
On November 8, 2007, InPhonic filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The filings were made in the U.S. Bankruptcy Court for the District of Delaware. InPhonic has obtained a debtor-in-possession financing facility which will give the company the financial resources it needs to operate under Chapter 11 and reorganize.
The company was modeled after sites like Expedia, gathering information from companies into a single site to help customers find deals by comparing services and prices. Wireless carriers do business with InPhonic because acquiring a customer through the company can be less expensive than traditional marketing approaches designed to generate sales at a brick-and-mortar store. InPhonic, in turn, receives a commission from carriers for each new account generated, once the customer meets a number of criteria. In general, this market is expanding; third-party activations now represent nearly 50% of all newly acquired subscribers, industry-wide.
The company's central online storefront, Wirefly.com, has received a number of Internet awards, including Forbes magazine's "Best of the Web" for 2004 and Keynote System's "Best In Overall Customer Experience" in 2005.
In addition to operating Wirefly.com, InPhonic powers the technology platform and fulfillment system of 6,000 other private label cell phone sales Web sites, according to company spokesman Tripp Donnelly. In early 2006, the firm claimed that it was the largest third-party online cell phone retailer in the US, accounting for one-third of the market, and that it sold 850,000 cell phones in 2005 alone. In June 2006 the company said that it had completed more than 2.5 million cellphone activations in the past three years.
The company is headquartered in Washington, D.C. and maintains technology and operations centers in Largo, Maryland and Reston, Virginia.
Financials
In September 2001, the company closed a $19 million Series D round of capital financing headed by Core Capital Partners. The investment also included new investors McAndrews & Forbes, First Analysis, Spring Capital and Wynnefield Capital. All previous investors -- including Sculley Brothers Investments, CMS Financial Services, and Mid Atlantic Venture Funds -- participated as well. In 2003, Technology Crossover Ventures invested an additional $56 million in the company.
The company went public in November 2004. The company raised $108.9 million through its initial public offering. The IPO was InPhonic's second attempt to tap the public markets; the company filed to go public in 2002 but canceled the offering because of stock market conditions at the time.
In November 2006, Goldman Sachs one of InPhonic’s largest shareholders, made the company a proposal to provide it with $100 million in debt financing, part of which InPhonic used for a large stock buy-back [1].
Acquisitions
InPhonic expanded its business interests in 2001, absorbing several tech companies which specialize in software and content management on mobile platforms. In January, it acquired Reason, Inc. for its expertise with device and management tools; in early October, the company bought a Durham, NC-based company Gadgetspace that develops software and services designed to extend large-scale corporate applications to wireless devices; and in November, it added Skyware Group, a New York developer of custom wireless applications, for an undisclosed amount of cash and stock. At the time, industry analysts pointed to all three additions as indicative of InPhonic's plans to grow into a multi-dimensional wireless company.
In 2002, InPhonic built its wireless distribution channels by buying Simplexity, Inc. for $20 million in stock and cash. The following year, the company maintained its aggressive acquisition strategy when it bought mobile marketing firm Avesair, signaling a move into mobile ad messaging and delivery.
In January 2005, InPhonic bought rival A1 Wireless for $10 million, and a few months later it purchased VMC Satellite, a player in the satellite TV industry, for $11 million.
Partnerships and affiliates
InPhonic's has established relationships with a range of e-commerce partners to provide wireless activation services. Its partners include high-profile brands such as Radio Shack, BestBuy, Overstock.com, Buy.com and AOL; industry players like Cognigen Networks and Intelisys,; and major U.S. carriers Verizon Wireless, Cingular, Sprint, T-Mobile, Alltel and others. InPhonic also runs fulfillment for original equipment manufacturers like the Motorola and LG brands.
A deal signed with Disney in April 2006 was the first deal for the company's mobile virtual network enabler (MVNE) division since the company shed its own mobile virtual network operator (MVNO), Liberty Wireless, in 2005.
InPhonic works with smaller sites through the LinkShare Affiliate Program [2], paying commissions to these websites when their readers go to InPhonic's site.
In April 2006, InPhonic finalized a partnership with Amazon.com to become Amazon's first third-party provider of wireless products [3]. InPhonic's online storefront Wirefly.com announced its sponsorship of the Wirefly X Prize Cup in September 2006. The event showcases space-related technology and innovation in the private sector, and features rocketry exhibitions and a series of monetary prizes.
On Thursday November 8, 2007, InPhonic filed for Chapter 11 Bankruptcy. The shares of this company fell to $.06 per share in late afternoon trading.