Cellnet down $10.2M but not out, says chairman

The distie claims the loss stems from discounted operations ($7.8 million), continuing operations ($2.4 million) and provisions of $2.5 million.

In an interview with CRN, Alexander Beard, chairman of Cellnet, said the focus of the company has been strengthening the balance sheet and eliminating all borrowings.

"We started operational changes to the company around two years ago," he said.

"It's an ongoing process and not an overnight task."

According to Beard, Cellnet's decision to discontinue the desktop and notebook segment of the business has seen improvement in the balance sheet.

All debts have been repaid in the last six months and the distie has cash on hand of "approximately $10 million.

"It will be a long haul before [Cellnet] is profitable," said Beard.

"The balance sheets are alright and we are now working with products that work for the company."

He told CRN the distributor has been affected by the global financial crisis with the volume of sales slightly down.

"We saw that coming and made sure all debt was removed," he said.

"We've reacted accordingly and we are still alive.

"[Cellnet] will continue on the road set out in the restructure, commenced on 31 October 2008."

The financial results come off the back of its announcement that Cellnet's former managing CEO, Stephen Harrison, resigned from his position at the end of January.

Beard said Harrison, one of the original founders of Cellnet, remains as an executive on the Board to help with the restructure and reorganisation of the company.

Stuart Smith, CFO at Cellnet, replaced Harrison.

"We are happy with what Stuart is doing," said Beard.