Technology news and Jobs 
VIRTUALISATION Freshtel going backwards - fast
VIRTUALISATION Freshtel going backwards - fast | Freshtel going backwards - fast |
|
| by Stuart Corner | |
| Tuesday, 03 March 2009 | |
  
Featured Whitepaper
5 Best Practices for Smartphone Support
Despite the Tesco deal, some innovative product offerings and a string of other promising deals signed in recent months Freshtel's directors were unable to sound very optimistic in their report filed with the half year accounts. They blamed the revenue decline as being mainly due to "a decline in customer projects revenue received from...Tesco," but gave no explanation why the deal with Tesco had failed to deliver, saying "Tesco, with Freshtel's assistance remains committed to growing its customer base and to exploring new technology." Tesco also must have been pretty bullish about the Freshtel service when it signed up. In December 2006 Tesco invested $12.3m in Freshtel, leaving it with a cash balance of almost $20m. Freshtel listed several recent initiatives in its report but made no comments on the prospects for any of these saying only that "Freshtel has taken steps to significantly reduce overheads. At the date of this report a redundancy program has been put in place that will decrease employee expenditure by $192,0000 per month. Administration expenses have also been reviewed in detail and a decline of $115,000 per months is expected. These measures are part of a comprehensive turnaround program that has been endorsed by the board on February 10." No further details of this program were given.
This article first appeared in ExchangeDaily, iTWire's daily newsletter for telecommunications professionals. Register here for your free trial.
 |
Tags
| < Next story in category | Previous story in the category > |
|---|
