Australian memory maker Legend has closed its Auckland sales operations, with all sales and technical support now being run from the Sydney office.
The company informed resellers through a message on its website that the New Zealand operations closed on January 25. Current orders were dispatched prior to January 31.
In a statement on the website CEO Bradley Dowe said the Auckland team, led by country manager Nicki Green, had been a tremendous support over the years.
“We thank them for their diligent efforts and wish them the very best for the future. I would also like to thank customers for their support over the many years that Legend has worked in New Zealand.”
Dowe was approached for comment but did not return calls at the time of going to press.
Green was with Legend for 10 years, while the local office had been operating for more than a decade.
It is understood the closure is due to flagging memory sales and consolidation of the company’s overseas operations.
According to reports last month in sister publication, Australian Reseller News (ARN), Legend has consolidated two factories in Taiwan and some of its warehousing operations along the east coast in Australia. The company plans to establish a bigger distribution facility in Sydney.
Legend also warned investors it won’t meet its full-year revenue guidance figures.
The company originally forecast its full-year EBIT (earnings before interest and tax) result to June 30 would range between A$12.1 to $14.7 million (NZ$14.5 to $15.6 million), while its net profits should hit A$6.7 to $8.4 million (NZ $8.7 to $9.4 million). The company is now in the process of redrafting its forecast.
Dowe was quoted by ARN as saying some of its classic product lines, such as conductors and memory components, were underperforming.
“The bigger issue that we are seeing is the slow down across the ICT channel. We’ve seen a downturn since the introduction of Vista and the uptake in mature markets such as Australia has been slow.”