Internap Corp. shareholders are receiving some good news for the company's 10th birthday: profitability.
Under the leadership of new CEO Jim DeBlasio, Internap, a provider of routing services for large online companies, has achieved its first year of positive net income since being founded during the first quarter of 1996. The company posted a profit of $541,000 on $42.6 million in sales during the first quarter, as opposed to a loss of $570,000 on $37.9 million in sales in the fourth quarter.
DeBlasio credits a more disciplined focus as well as his frugal management style.
"I'm really cheap," he said. "I can't help it."
Among other things, DeBlasio drove down costs associated with landlords and vendors. In addition, he restructured the sales process and commission program to provide more targeted incentives for the sales team. The CEO also says he has been relentless in instilling the fact that company money is employees' money.
"I tell them 'You are the owners of this business, act like it.' "
DeBlasio took the reins of the struggling company from Greg Peters in November. Internap has reduced head count substantially over the past two years and now employs about 300 people.
Internap (Amex: IIP), which signed 50 customers during the first quarter, helps companies such as Atari Inc. increase the speed of their Internet traffic. The company plans on doing a reverse stock split by the end of the year. Share price is currently about $1.45.
DeBlasio expects the entire year to be profitable.