Menu
NZ spared from Cellnet's Australian woes

NZ spared from Cellnet's Australian woes

The reported net loss of A$836,000 ($939,642) by Cellnet Australia will have no impact on the distributor's local business, as the two companies operate separately, says New Zealand general manager John Dunbar.

“Cellnet New Zealand operates in a separate market and sells different products,” he says.

Australian Reseller News (ARN) reports that the drop in profits was due to doubtful debt provisioning and the loss of distribution contracts with Apple and HP.

However, Dunbar says Cellnet Australia did not lose the contracts but decided to end them.

“Apple and HP are very low margin and high volume products so they’re looking at more value-add products and more niche parts of the market as well. Cellnet Australia did a product analysis of how much [gross profit] these brands bring in and what it costs to sell the products.”

According to its half-yearly results, Cellnet Australia experienced an 8.1 percent drop in revenue year-on-year, from A$265.8 million ($298.7 million) to A$244.3 million ($274.5 million). ARN also reports that net profits of A$2.8 million ($3.1 million) in the first half of 2006 were due largely to an A$2.2 million ($2.4 million) profit on the sale of its New Zealand premises.

Cellnet Australia attributed the profit wipeout in the first half to a substantial provision for doubtful debts of A$3.1 million ($3.4 million). This followed a review of Cellnet’s credit collection process, which found A$2.7 million ($3 million) worth of debts at June 30, 2007, that had not been provided against, says ARN.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags HPApplecellnet

Brand Post

What to expect from your IT Distributor

Whether you’re just starting out or you’ve been around since before the dot com rollercoaster, choosing the right distribution partner can be a pivotal factor in your success. This definitive guide outlines the traits that every IT partner needs to look for in their IT Distributor.

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments