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07-09-2002, 03:14 PM
Yipes Enterprise Services Emerges as Newly Funded Company
Poised for Growth
Company Provided Unwavering Support for Customers During Reorganization
SAN FRANCISCO, Calif. July 9, 2002 Yipes Enterprise Services, Inc. (formerly PHX Holdings, Inc.), today announced it has acquired substantially all the assets of Yipes Communications, Inc. via an asset sale approved by the U.S. Bankruptcy Court in San Francisco, CA. The company also raised a $54 million round of new financing from a strong syndicate of investors, and is in a healthy financial position to achieve market growth and offer Yipes・ unique, highly scalable Ethernet services to new and existing customers.
In an effort to lower costs, reduce fixed obligations and position itself to take advantage of future growth opportunities, Yipes filed a voluntary petition for reorganization under Chapter 11 in late March of 2002. In just over three months, Yipes revised its business plans, restructured operations, and sold substantially all of its assets to a newly formed company, Yipes Enterprise Services, Inc. The operations of Yipes has now emerged as a fully funded, highly competitive organization with Yipes・ blue chip customer base intact. Under the new business plan, the company will continue to serve customers and expand services in 10 markets including San Francisco, San Diego, Seattle, Chicago, New York, Philadelphia, Denver, Dallas, Houston and Washington D.C. Customers in remaining markets will transition to E-xpedient Holdings, Inc., a national service provider. Yipes・ assets, including its network, operational support systems, customer support, NOC and local sales and operations teams remain intact, and the company will continue to operate under Yipes management and the new Yipes Enterprise Services trademark.
Yipes・ top priority throughout restructuring was ensuring continued top-notch service for customers in all markets.
"Yipes NET service is a great fit for the iNetworking requirements of Deloitte Consulting's TriState region. Yipes has built a scalable and sustainable network, which the majority of our strategic financial services clients also rely on to support core pieces of their networks under long term contracts. When Yipes decided to take strategic reorganization steps, they were proactive in contacting customers, outlining the process and re-assuring us about our uptime. Yipes has maintained all SLAs during the reorganization. The company has consistently provided us full support and continued excellent service levels," said Dr. Neil Lowe, Senior Manager, Deloitte Consulting.
The reorganization focused on successfully renegotiating supplier contracts to current market rates and aligning expenses with revenue generation. The negotiations included significant reductions in costs associated with adding new customers. These activities have enabled Yipes Enterprise Services to create a business plan that is fully funded to cash flow positive.
"Yipes' restructuring was completed quickly, maintaining the company's customer value proposition and its excellent customer base while funding the new business plan. We expect to see strong growth for metro Ethernet services," said Nick Maynard, senior analyst at the Yankee Group.
"We remain optimistic about the Ethernet services market and the unique and compelling services it enables for customers. Having financially viable competition is key to drive the rapid growth we expect in this market,； said Mark Fabbi, Vice President and Research Director, Gartner, Inc.
Yipes Enterprise Services continues to serve Yipes・customers with its trademark flexible and scalable Ethernet services. The success in retaining customers reflects the high customer value of Yipes・ services, as well as exceptional customer communication and network reliability.
"Yipes has been a strategic business partner for Extreme since day one, and our ongoing relationship and commitment to advanced Ethernet and IP services is setting the standard for high-bandwidth and service-rich metro networks," said Gordon Stitt, president and CEO of Extreme Networks. "We are pleased to see the restructured company poised to expand its network, and we will continue to work together to offer customers unprecedented levels of bandwidth and services for increased productivity."
：We・ve believed in the value proposition offered by Yipes・ services and the metro Ethernet market opportunity from the day we seeded the company to today・s successful restructuring. This is evidenced by our decision to support Yipes Communications through its bankruptcy via a dip loan, and our subsequent endeavor to lead the syndicate that bought the assets of Yipes Communications,； said Promod Haque, managing partner, Norwest Venture Partners and chairman of Yipes Enterprise Services. ：We believe Yipes Enteprise Services now has the management team in place with the breadth and track record to help the company achieve continued market growth and leadership.；
Dennis Muse has been appointed to president and CEO of Yipes Enterprise Services. Muse joined Yipes Communications, Inc. in January 2002 as chief operating officer, and in March he was appointed to president and CEO when the company filed for bankruptcy. Muse・s experience with competitive service providers and value-added services will help bring Yipes Enterprise Services into the next phase of its lifecycle. Muse・s team includes co-founder and CTO Kamran Sistanizadeh, who is the original architect of Yipes・ network and holds 16 service-related patents.
：The successful restructuring of Yipes and the recent infusion of new funds is a testament to the company・s unique vision, highly affordable service offerings and ongoing customer traction,； said Dennis Muse, president and CEO, Yipes Enterprise Services. ：We value the patience and loyalty of our customers, business partners and suppliers, and we are delighted to have a new business plan in place that will enable it to continue serving and nurturing these strategic relationships.；
About Yipes Enterprise Services
Yipes Enterprise Services provides instantly scalable Ethernet services, ranging from 1 Megabit per second to 1 Gigabit per second in 1 Mbps increments. These highly affordable services available in 10 major metropolitan markets coast-to-coast, include Yipes MAN (Metro Area Networking), Yipes NAN (National Area Networking) and Yipes NET (high-speed Internet access). The San Francisco-based company's customers include Fortune 1000 enterprises, financial institutions, real estate companies, law firms, medical facilities, Web-based businesses, ISPs and ASPs, universities, school districts and government agencies. The assets of Yipes Communications are owned by Yipes Enterprise Services (formerly PHX Holdings, Inc.), led by Norwest Venture Partners. The newly formed company also raised a $54 million round of funding led by Norwest Venture Partners and a syndicate of existing investors including New Enterprise Associates (NEA), The Sprout Group/CSFB, JP Morgan Partners, Soros Private Equity Partners, Focus Capital, Glynn Ventures and Quantum Capital.
Yipes Enterprise operations has won numerous honors for innovation and excellence from America's Network, CED, Computerworld, CRN, Enterprise Systems, Inter@ctive Week, The Net Economy, Network Magazine, Network World, Red Herring, tele.com, Telephony and Upside, and awards from COMNET, NetWorld + Interop, Supercomm, as well as the World Communication Award for Best New Carrier. For more information, visit www.yipes.com.
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Poised for Growth
Company Provided Unwavering Support for Customers During Reorganization
SAN FRANCISCO, Calif. July 9, 2002 Yipes Enterprise Services, Inc. (formerly PHX Holdings, Inc.), today announced it has acquired substantially all the assets of Yipes Communications, Inc. via an asset sale approved by the U.S. Bankruptcy Court in San Francisco, CA. The company also raised a $54 million round of new financing from a strong syndicate of investors, and is in a healthy financial position to achieve market growth and offer Yipes・ unique, highly scalable Ethernet services to new and existing customers.
In an effort to lower costs, reduce fixed obligations and position itself to take advantage of future growth opportunities, Yipes filed a voluntary petition for reorganization under Chapter 11 in late March of 2002. In just over three months, Yipes revised its business plans, restructured operations, and sold substantially all of its assets to a newly formed company, Yipes Enterprise Services, Inc. The operations of Yipes has now emerged as a fully funded, highly competitive organization with Yipes・ blue chip customer base intact. Under the new business plan, the company will continue to serve customers and expand services in 10 markets including San Francisco, San Diego, Seattle, Chicago, New York, Philadelphia, Denver, Dallas, Houston and Washington D.C. Customers in remaining markets will transition to E-xpedient Holdings, Inc., a national service provider. Yipes・ assets, including its network, operational support systems, customer support, NOC and local sales and operations teams remain intact, and the company will continue to operate under Yipes management and the new Yipes Enterprise Services trademark.
Yipes・ top priority throughout restructuring was ensuring continued top-notch service for customers in all markets.
"Yipes NET service is a great fit for the iNetworking requirements of Deloitte Consulting's TriState region. Yipes has built a scalable and sustainable network, which the majority of our strategic financial services clients also rely on to support core pieces of their networks under long term contracts. When Yipes decided to take strategic reorganization steps, they were proactive in contacting customers, outlining the process and re-assuring us about our uptime. Yipes has maintained all SLAs during the reorganization. The company has consistently provided us full support and continued excellent service levels," said Dr. Neil Lowe, Senior Manager, Deloitte Consulting.
The reorganization focused on successfully renegotiating supplier contracts to current market rates and aligning expenses with revenue generation. The negotiations included significant reductions in costs associated with adding new customers. These activities have enabled Yipes Enterprise Services to create a business plan that is fully funded to cash flow positive.
"Yipes' restructuring was completed quickly, maintaining the company's customer value proposition and its excellent customer base while funding the new business plan. We expect to see strong growth for metro Ethernet services," said Nick Maynard, senior analyst at the Yankee Group.
"We remain optimistic about the Ethernet services market and the unique and compelling services it enables for customers. Having financially viable competition is key to drive the rapid growth we expect in this market,； said Mark Fabbi, Vice President and Research Director, Gartner, Inc.
Yipes Enterprise Services continues to serve Yipes・customers with its trademark flexible and scalable Ethernet services. The success in retaining customers reflects the high customer value of Yipes・ services, as well as exceptional customer communication and network reliability.
"Yipes has been a strategic business partner for Extreme since day one, and our ongoing relationship and commitment to advanced Ethernet and IP services is setting the standard for high-bandwidth and service-rich metro networks," said Gordon Stitt, president and CEO of Extreme Networks. "We are pleased to see the restructured company poised to expand its network, and we will continue to work together to offer customers unprecedented levels of bandwidth and services for increased productivity."
：We・ve believed in the value proposition offered by Yipes・ services and the metro Ethernet market opportunity from the day we seeded the company to today・s successful restructuring. This is evidenced by our decision to support Yipes Communications through its bankruptcy via a dip loan, and our subsequent endeavor to lead the syndicate that bought the assets of Yipes Communications,； said Promod Haque, managing partner, Norwest Venture Partners and chairman of Yipes Enterprise Services. ：We believe Yipes Enteprise Services now has the management team in place with the breadth and track record to help the company achieve continued market growth and leadership.；
Dennis Muse has been appointed to president and CEO of Yipes Enterprise Services. Muse joined Yipes Communications, Inc. in January 2002 as chief operating officer, and in March he was appointed to president and CEO when the company filed for bankruptcy. Muse・s experience with competitive service providers and value-added services will help bring Yipes Enterprise Services into the next phase of its lifecycle. Muse・s team includes co-founder and CTO Kamran Sistanizadeh, who is the original architect of Yipes・ network and holds 16 service-related patents.
：The successful restructuring of Yipes and the recent infusion of new funds is a testament to the company・s unique vision, highly affordable service offerings and ongoing customer traction,； said Dennis Muse, president and CEO, Yipes Enterprise Services. ：We value the patience and loyalty of our customers, business partners and suppliers, and we are delighted to have a new business plan in place that will enable it to continue serving and nurturing these strategic relationships.；
About Yipes Enterprise Services
Yipes Enterprise Services provides instantly scalable Ethernet services, ranging from 1 Megabit per second to 1 Gigabit per second in 1 Mbps increments. These highly affordable services available in 10 major metropolitan markets coast-to-coast, include Yipes MAN (Metro Area Networking), Yipes NAN (National Area Networking) and Yipes NET (high-speed Internet access). The San Francisco-based company's customers include Fortune 1000 enterprises, financial institutions, real estate companies, law firms, medical facilities, Web-based businesses, ISPs and ASPs, universities, school districts and government agencies. The assets of Yipes Communications are owned by Yipes Enterprise Services (formerly PHX Holdings, Inc.), led by Norwest Venture Partners. The newly formed company also raised a $54 million round of funding led by Norwest Venture Partners and a syndicate of existing investors including New Enterprise Associates (NEA), The Sprout Group/CSFB, JP Morgan Partners, Soros Private Equity Partners, Focus Capital, Glynn Ventures and Quantum Capital.
Yipes Enterprise operations has won numerous honors for innovation and excellence from America's Network, CED, Computerworld, CRN, Enterprise Systems, Inter@ctive Week, The Net Economy, Network Magazine, Network World, Red Herring, tele.com, Telephony and Upside, and awards from COMNET, NetWorld + Interop, Supercomm, as well as the World Communication Award for Best New Carrier. For more information, visit www.yipes.com.
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