According to a quarterly financial report released by NaviSite Inc., the company is looking to dispose of America’s Job Exchange, one of the company’s wholly owned subsidiaries.
NaviSite apparently made the determination in fiscal year 2008 to shut down or sell the job board because “it was not core to [their] business.”
Now they are actively seeking an appropriate means of disposal.
America’s Job Exchange has continued to offer recruiting tools to former users of America’s Job Bank, a job site run by the U.S. Department of Labor that was retired in 2007. The site claims to have over half a million jobs from 35,000 registered employers.
AJE also offers employers premium job postings, resume database access, brand advertising, and assistance with OFCCP distribution and reporting.
UPDATE 3.22.09 (JC)
The company was none too happy about this post. Shortly after publishing, author Vanessa Dennis received a nasty e-mail from an AJX employee:
I read your interpretation of the recent Navisite Quaterly earnings report, a call I listened to from start to finish.
Cheezhead is sponsored by JobCentral: I see you’re a ‘writer’ and not a journalist, but did you not take an ethics class at Loyola?
Meredith Bartlett
Senior Account Executive
America’s Job Exchange
Nice. At least she had the guts to put her name to such a message, which is more than I can say from most. Her beef, which mirrored that of CEO Rathin Sinha, was that somehow our close relationship with sponsor JobCentral spurred the post. Such a claim would hold a lot more water had there been a track record of bashing America’s Job Exchange, but that’s hardly the case. I’m not even sure I could pick the site out of a lineup, sans logo.
Anyway, a phone conversation with Sinha regarding the post and the subsequent e-mail led to an agreement that the post shared no falsehoods with our beloved readers. We buried the hatchet and threw the troubled waters under the bridge. Or so I thought. On Friday, Sinha posted the following update to his LinkedIn account:
So disappointing. After an apparent agreement to let bygones be bygones, homeboy punks us via LinkedIn. He may want to read a little Mark Twain who said, “Never pick a fight with a man who buys his ink by the barrel.”
Nevertheless, it may not even make a difference. The company has bigger issues than lil’ ol’ us. Earlier this month, NaviSite, America’s Job Exchange’s ownership and public company, was notified by Nasdaq that its common stock was in jeopardy of being delisted. It was last trading at 35 cents a share.
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March 18th, 2009 at 12:24 pm
It is interesting to see the way you crafted the headline.
If you go through NaviSite earnings call transcripts you will see that the company’s position has been very consistent for the past two years and the latest earning call has not been any different. NaviSite wants to build and grow AJE until a suitable strategic alternative (including disposition) is achieved. Currently, AJE continues to grow and sign up new customers, launch new products, grow sales and profitability.
If you had only refrenced the actual words from the latest earnings call on March 05 readers would have seen something like this “Traffic to the career search portal continues to grow along with key operating metrics…. Per our projections, the AJE operation was essentially breakeven on both an EBITDA and cash flow basis in Q2 (Fiscal quarter that ended in January 09) and we plan to continue the business in this fashion until a strategic exit is achieved.”
The way I read it, AJE keeps growing as a subsidiary of NaviSite maximizing its shareholder value.
March 20th, 2009 at 2:39 pm
http://finance.yahoo.com/q?s=navi