AppliedTheory Communications Inc, a New York-based internet access, hosting and intranet integration services company was yesterday denying reports that it is up for sale, but confirmed that it is looking for funding to expand its operations. According to senior VP Jim Luckett, the privately-held company wants to expand our access footprint outside of New York state. At present, the company based in Great Neck on Long Island, provides access to universities and companies within the Empire State, but also hosts companies and provides intranet products and services to companies from all over, with the federal government as its biggest single customer. Luckett said the company also wants to expand its product offerings that exploit a key piece of intellectual property it has that links databases to browsers. He said the company is using a mix of a private placement and VC money and has already appointed a bank to advise the company, but could not says which one. AppliedTheory was spun out of veteran not-for-profit ISP NyserNet back in October 1996, and hit the ground with revenues of $6m. NyserNet was established in 1985 and the following year started building the first non-government IP network to link New York’s universities. In 1987 it was the first ISP to connect commercial customers to the internet, which included IBM Corp, general Electric and Eastman Kodak Co. NyserNet us currently involved in the Internet2 project. PSINet was spun out of NyserNet in 1990 and some reports have that company buying AppliedTheory, which the latter denies is a possibility as it is not in play. Last year’s run rate at AppliedTheory was $15m, according to Luckett and it is expected to break even this year.
