Augme Technologies (OTC: AUGT) announced the appointment of Tom DeLuca to the post of Chief Operating Officer of Augme and its wholly owned subsidiary Hipcricket. The mobile media market is continually changing and evolving. Augme Technologies is one of the market leaders when it comes to mobile media technology. Frost & Sullivan have named Augme’s subsidiary Hipcricket as “the preferred provider of high impact mobile marketing solutions in the United States.”
At the Helm
The company has been facing a few ups and downs lately. After the tenure of the last COO came to an end, Robert Hussey took over the top spot in the interim. He will now step down in favor of DeLuca. While this is a positive change for the company because DeLuca comes with glowing recommendations and a shining resume, the company is still reeling from a lawsuit defeat.
Only summary judgments have been released and the patent lawsuits are still underway, but things do not look too bright for Augme. The company has sued other important media giants such as Yahoo, AOL, Pandora and more. The summary judgment was released in Augme’s case against Yahoo. Yahoo (NASDAQ: YHOO) is a US-based multinational Internet organization that hosts its own search portal, search engine, email, directory and many more service platforms. Augme’s case was built on the ground that Yahoo was using Augme’s patented technology for targeted marketing systems, which constituted a patent portfolio infringement. The preliminary judgment was in Yahoo’s favor, but Augme has decided to not back down.
Augme Technologies is a penny stock company whose shares trade at high volumes in the over the counter markets. The share price opened at $1.08 per share at the start of the session, but the going was downhill after that. The shares quickly plummeted by about 25.2%, or $0.27 per share. The share price ended the trading session at just $0.70 per share. This price falls lower than its 52-week share price range, which is between $3.58 and $1.04.
The impending lawsuits might be making a difference to the company’s share price. Like Yahoo, AOL (NYSE: AOL) too is a giant in the Internet and media market with a business that covers many industries such as online content, products, as well as service providing. Certainly AOL is not what it used to be much to Ted Turner’s chagrin. AOL used to be the size of Microsoft but because of poor leadership and a lead foot, it could not pivot fast enough to keep up with its rivals.
Ace in the Hole
The introduction of DeLuca at the helm of the company is an attempt to revive the company’s performance. DeLuca has had a fulfilling career. He has held important posts in companies like advertising giants Ogilvy and Mather where he served as COO. He also served at Warner Brothers Home Entertainment where he took on the mantle of Vice president of Worldwide Digital Marketing. He hopes to use his marketing, leadership and social media genius, as well as his operations expertise, to enhance Augme and Hipcricket and take these companies to a higher plateau. However, he is not the only leader who wants to take his company to the Promised Land.