Modem Media.Poppe Tyson (Nasdaq: MMPT), which builds and markets online businesses for large companies, has landed another significant deal from a corporate heavyweight. Today, Modem Media announced that General Electric (NYSE: GE) has committed to a contract worth more than $11 million (US$) through September 30, 2000.
Under the terms of the contract, which builds upon earlier agreements with GE, Modem Media will provide Internet and intranet planning and development services to GE and its business units, including those in North America, Europe, South America and Asia.
One of Modem Media’s firsts tasks will be to redesign GE’s corporate Web site. The new GE site launched on July 20, and the company says the site will be continually upgraded with content and commerce offerings.
“GE business units operate in more than 100 countries around the world, and developing our global Internet enterprise is a key strategic priority for us,” said Gary M. Reiner, senior vice president and chief information officer for GE. “We selected Modem Media because of their strategic approach and demonstrated expertise in working with global companies.”
Modem Media’s Global Presence
Modem Media has offices in Norwalk, Connecticut, New York City, San Francisco, Toronto, London, Tokyo, Hong Kong and an affiliate office in Sao Paolo. Other companies Modem Media has worked with include IBM, AT&T, Lucent, Excite, Compaq, Intuit, Sony, E*Trade, 3M, Citibank, Delta Air Lines, JCPenney, John Hancock and Unilever.
Shares of Modem Media were up nearly 22 percent in early trading today after the news, climbing 4-1/2 to 25. Two weeks ago Modem Media dazzled Wall Street with a blowout second-quarter earnings report. Modem Media, which analysts had expected to lose money in the quarter, reported record revenues of $16 million, and earnings of five cents a share. The stock climbed 7-7/8 to 29-1/8 two Fridays ago after the earnings report was released, before giving back some of the gains.
Modem Media’s prospects look good because it is helping brick-and-mortar companies, media companies and pure-play e-commerce companies create or expand their online presence. Last Thursday, Modem Media announced a deal with the Financial Times of London newspaper. Modem Media will manage a new marketing program for the Financial Times’ Web site.