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

Featured

Slideshows

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

New Zealanders kick-started EDGE 2018 with a bout of Super Rugby before a dedicated New Zealand session, in front of more than 50 partners, vendors and distributors on Hamilton Island.​

EDGE 2018: Kiwis kick back with Super Rugby before NZ session
EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018 kicked off with a dedicated New Zealand track, highlighting the key customer priorities across the local market, in association with Dell EMC. Delivered through EDGE Research - leveraging Kiwi data through Tech Research Asia - more than 50 partners, vendors and distributors combined during an interactive session to assess the changing spending patterns of the end-user and the subsequent impact to the channel.

EDGE 2018: Kiwis assess key customer priorities through NZ research
Show Comments