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Burlington Based Security Technology Company

 
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netNumina
Cambridge Based Internet Professional Services Firm
Startup Spotlight
netNumina CEO,
Al Lucchese
You Can Call Him Al
by Michael Stern

YOU CAN CALL netNumina's CEO Al, but you may need to add on the Jr. suffix to distinguish Al Lucchese from his well-known father Al Lucchese Sr., the Chairman of Westford, MA based Davox. Running technology companies apparently runs in the family blood. Al Jr. joined netNumina as CEO in March of 2000 after having co-founded a technology solutions company in 1992, which he sold in 1998 to Whitman-Hart.

netNumina, located in West Cambridge at the old Star Market headquarters, is one of the many local players in the Internet Professional Services space. A hybrid consulting company and design firm, netNumina builds web sites, and components of sites, for large companies.

While this segment of the industry has suffered some deep setbacks, with former local star Zefer recently shutting its doors, netNumina appears to be bucking the trend. The company expects to generate greater sales in 2001 than 2000, as its competitors are posting steep year-over-year declines.

netNumina focuses on the financial services vertical: banking, brokerage and insurance companies, which Lucchese believes has helped it weather the storm. "We feel that by making a decision early on to not be cross-industry [oriented] and not focus on emerging dot com businesses, we positioned [ourselves] to be a high-value proposition company," he says.

Lucchese believes in putting the customer first. Gone are the days of Internet arrogance where consulting firms thumbed their noses at potential clients who they thought "didn't get it."

"No professional services company is anything without terrific people that really know how to work as a team, and leverage one another and respect one another, and truly, truly respect how to work with a client," Lucchese articulates.

Though revenue gains are solid, Lucchese is quick to admit that netNumina has a difficult issue with its real estate. The company has signed for 60,000 square feet at its current Cambridge digs, but is only utilizing half of it, and is looking to sublease.

"I have a wildcard in the [profitability] scenario," Lucchese states. "netNumina, not unlike a lot of companies, committed to real estate in anticipation of growth. If we did not have the real estate burden, we would be close to profitable right now."


netNumina

Founded:
Founded in 1997 by three technologists from Open Environment after it was acquired by Borland International.

HQ:
625 Mount Auburn Street
Cambridge, MA 02138
Phone: 617-575-8000
Fax: 617-575-8100

Web site:
www.netnumina.com

Employees:
120 employees with 85 billable consultants. netNumina continues to hire business relationship employees.

Funding:
In May of 2000, the company raised $25 million in its first and only round of funding. Greylock and TA Associates were the lead investors. Other investors were BancBoston Ventures, BEA Systems and Allaire.

Customers:
80% of revenue comes from financial services clients like Fidelity, Liberty Mutual, State Street, Merrill Lynch and Citigroup. Clients outside of financial services include CVS, Massport, Agilent, Johnson & Johnson and WBUR.

Competitors:
Sapient, Viant, Scient

Revenue:
netNumina did $14 million in revenue for 2000. Currently experiencing sequential quarterly growth. Expecting to become profitable in Q2 of 2002. "We'll grow over 40% in a very, very difficult market and finish 2001 with a little over $20 million." Al Lucchese

Competitive Advantage:
netNumina delivers sites and solutions at the client's site, allowing for the client to participate in the process. A company like Sapient tends to build solutions at their own offices rather than at the client's, which Lucchese views as less attractive for the client.

Management Team:
Al Lucchese Jr.
President & CEO

Stephen M. Richards
CFO

Alex Hase
VP of Sales

Max P. Grasso
CTO

Anish Dhanda
Founder & VP

Imran Sayeed
Founder & Chairman

Greg Sabatino
Founder & VP

 
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