Stock Watch: Sun Alliance Boosts Razorfish

Razorfish, Inc. (Nasdaq: RAZF) picked up 1/16 to 4 1/2 Monday after the New York City-based Web design and technology consulting firm announced an alliance with Sun Microsystems, Inc. aimed at tapping the wireless market.

The companies said they will focus on “defining and implementing wireless architectures and solutions built on Sun technology,” and are already working to market the products to their top 25 prospective clients.

“Razorfish brings a well-respected level of expertise to Sun customers that will help them speed time to deployment with their wireless Internet infrastructures,” said Darlene Yaplee, vice president of Sun Microsystems’ eIntegrators division.

As part of the arrangement, Sun will sponsor and invest in the expansion of Razorfish’s Helsinki, Finland, mobile solution lab and a new lab to be opened in California’s Silicon Valley. The labs, the companies said, will give customers the opportunity to test wireless systems, shortening the time required for their development to 8 to 12 weeks.

Sun and Razorfish said they are also developing a joint pilot program to test wireless products. The companies have worked together in the past, developing wireless products for companies including DuPont, Doubletwist and Simbacom.

Razorfish last week reported third-quarter pro forma earnings of $900,000, or one cent per fully diluted share, down from $5 million, or 5 cents, in the year-earlier quarter. Revenue, meanwhile, surged 72 percent to $77.1 million.

As with other companies that rely on Internet-related consulting for revenue, Razorfish shares are still trading near a 52-week low, well below their 52-week high of 56 15/16.

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