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Motricity founder/CEO Wuerch exits, Smith named interim chief

August 22, 2011 — 9:34am ET | By Jason Ankeny

Motricity founder and CEO Ryan Wuerch has left the company, effective immediately. Motricity and Wuerch agreed on Aug. 21 to terminate Wuerch's employment with the mobile content services firm and to end his membership on its board of directors. Jim Smith, named Motricity president and COO in early 2009, will step into the CEO seat on an interim basis; Motricity's board has already initiated a search for a permanent replacement, adding it will consider Smith as well as external candidates.

Wuerch launched Motricity under the PowerByHand brand in 2001, offering content and information services targeting mobile and handheld devices. The company merged with Pinpoint Networks in April 2004, rebranding as Motricity six months later. In early 2008 Motricity acquired Seattle-based Infospace Mobile for $135 million, relocating from Durham, N.C. to the Pacific Northwest and touting an end-to-end platform powering operator portals, storefronts, managed web and search services.

Motricity filed for an IPO in January 2010--when the company finally began trading on the NASDAQ five months later, it offered 6 million shares of common stock priced at $10 per share, down from previous projections of 6.75 million shares valued at $14 to $16 apiece. Motricity said it planned to leverage the proceeds of the IPO to fund investments and product/technology acquisitions, scooping up mobile marketer Adenyo for $100 million. In recent months Motricity has also inked international carrier deals with operators including Reliance and Celcom Axiata.

Wuerch's exit follows just days after Motricity reported second quarter losses of $4.3 million, less than the $11.6 million net loss reported a year earlier--in addition, the mobile content services firm projected third quarter revenues of $31.5 million to $32.5 million, far off analyst forecasts of $45 million. Motricity blamed its weak results on increased competition in the international market and closing its Adenyo acquisition later than expected.

With its stock down 42 percent over the last year, Motricity is also seeking a replacement for CFO Allyn Hebner. The company recently removed chief strategy and marketing and development officer Jim Ryan as well.

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