Motricity terminates T-Mobile USA contract

Mobile content solutions provider Motricity has dissolved a wireless data services partnership with T-Mobile USA. A Motricity spokesperson tells TechFlash the move will help "drive margin expansion in our business, serve our growing customer base and deliver shareholder value," adding the T-Mobile deal represents only about 1.5 percent of its revenues. "We continue to support T-Mobile, their business needs, and will endeavor to pursue a mutually beneficial relationship in the future," Motricity adds. T-Mobile USA declined comment.

Motricity also will cut a handful of jobs, laying off 13 of its 600 employees and contractors, although the firm maintains the move is unrelated to the T-Mobile deal. "Those employees are being considered for internal positions worldwide, and have received details about our severance benefit offering," Motricity tells TechFlash.

Earlier this month, Motricity reported third quarter 2010 revenues of $37.9 million, up 35 percent from $28.1 million in the year-ago quarter. According to Motricity, managed services revenues increased 19 percent to $24.2 million, while professional services revenue surged 78 percent to $13.7 million. The company credits the growth in professional services revenue to large implementation projects for AT&T (NYSE:T) and Indonesian mobile operator XL Axiata. Last week, Motricity signed a deal with Malaysian carrier Celcom Axiata to provide mobile web services to the carrier's 11 million feature and 3G smartphone subscribers.

For more:
- read this TechFlash article

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