The firm, which employs 520 workers, is relocating its workers to Texas in Houston, Fort Worth and Austin. The company, which released its fourth quarter financial results on Tuesday (Feb. 27), showed a net loss of $72.9 million, expects to increase its workforce to more than 600 by year-end 2001.
Company officials report that while the firm is moving from White Plains, it will retain a presence in Westchester County. The firm will retain its 125 workers at its Network Operations Center facility in Yorktown Heights at 1565 Front St.
The company has retained Insignia/ESG to market its office space here. Steven Greenbush, a director with Insignia's Westchester-Connecticut offices, said that there has been some interest in the Prodigy space, but to date no lease deals have been signed. Prodigy is vacating offices that comprise the entire eighth and ninth floors as well as some telecommunications-related space on the lower level of 44 South Broadway.
Prodigy, which was founded as a joint venture of IBM and Sears, expects to increase is current Internet subscriber base from 2.8 million to between 3.1 million to 3.8 million by year-end 2001. The Internet services firm, which has shifted its focus to providing DSL services, recently received a boost when SBC Communications provided the company with a $110 million line of credit.
Charles Foster, chairman, president and chief executive officer of Prodigy comments that the SBC Communications deal puts Prodigy "in a significantly stronger financial and marketing position. We believe our new business model, which provides a steady revenue from SBC's DSL customers, new dial subscriber growth from co-marketing opportunities with SBC within its 13-state region, and increased advertising revenue from our portal will allow us to meet or exceed our revenue projections for the year."
The company said it expects to improve its fiscal performance throughout 2001. The company, which currently occupies 35,000 sf at Building 2 at 6500 River Place Blvd., in Austin, is scheduled to move into Building 3 of the complex in May of this year. The firm will occupy the entire 112,000 sf building.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
