In the latter half of 2000 and 2001, as the dot-com bubble burst, Lavastorm reinvented itself. It laid off employees, and split off its Internet engineering services in San Jose, California, selling them to management. The Massachusetts operation, now only 20 employees, focused on making software for telecommunications revenue assurance after doing a project with Verizon Communications. In 2001 Lavastorm introduced the Revenue Assurance and Intercarrier Cost Management products. Drew Rockwell, a former executive at Verizon, was hired in 2002, and Newton left in 2003. Lindsey went to work for Hewlett-Packard, and later became the Chief Technology Officer for the Federal Bureau of Investigation and United States Department of Justice.