Frankfurt - Corporate self-booking provider I:FAO last year dissolved the San Ramon, Calif.-based QuixData unit it purchased about 18 months ago (BTN, Sept. 4, 2000), I:FAO revealed in its 2001 annual report. While businesses and travel agencies no longer can buy QuixData's data services independently, the software was incorporated into I:FAO's Cytric and Powertrip systems for reporting on self-bookings.
The decision resulted from "disappointingly lower sales results," the report said. According to I:FAO chief technology officer Alexander Schott, "We had to cancel some client contracts as the numbers for the stand-alone application were behind our expectation."
The decision followed the failure of Scottsdale, Ariz.-based I-Tinerary Travel Solutions, in which I:FAO held a minority stake. Apparently seeking to assure investors, I:FAO stated that "no new funds have been made available for investment in startups" in 2001.
Schott assured the business travel community that its purchase of Powertrip, a self-booking product for midsize U.S. companies, last year from Xtra On-Line (BTN, June 25, 2001) would not follow the paths of QuixData and I-Tinerary. "The Powertrip business is very successful and close to its break-even point," Schott said. "We have stabilized their technology, integrated I:FAO components and our goal is to convince the market that I:FAO is behind it and it will be in the market for longer than people expected. We're signing up customers each week and still hiring for the development team."
I:FAO's Cytric system for larger programs gained momentum in early February when Philadelphia-based mega agency Rosenbluth International announced it had signed a partnership with I:FAO to resell the tool outside of the United States. Rosenbluth said it already has begun deployment plans for Western Europe, which will be followed by additional global markets through 2002.
I:FAO's losses in 2001 surpassed its 2000 earnings, largely due to "the significantly bad business performance of our participants, the horrific terror attacks in the United States and decreasing technology investments of our customers."
I:FAO lost $7.2 million in 2001, versus a profit of $8.5 million in 2000. The company managed to keep the employee count level while its customers grew to 1,218, from 557. It did so because I:FAO has obtained most of its clients through resellers—including BTI, Dresner Bank, Siemens Business Services and TQ3—and those companies provide the first level of client support.