Tennyson Networks (ASX: TNY) today announced that its new sales and distribution model had already increased the pipeline and flow of orders as well as achieved higher margins for the Smart Office eXchange (SOX) products sold.
These positive results follow the announcement early this year that Tennyson intended to supplement its existing reseller network with an increased direct sales force and alliances with organizations that could provide access to their customers.
Tennyson chairman Harvey Parker said: "Until this year Tennyson's main route to market was distribution of SOX through a network of Australia-wide resellers - Tennyson Channel Partners (TCP's). Although providing consistent sales, the size and access to market of these TCPs would not be sufficient to satisfy Tennyson's growth plans for SOX. By expanding our sales and distribution capability through direct sales and alliance partners we are now starting to see more promising results."
Tennyson has now formed five new relationships with the following organisations:
* Commsoft Group Ltd - a developer of communication software products which Tennyson distributes as part of its product offering, and which provides access to its customer base.
* VSA Group - a Sydney-based business consultancy/brokerage organisation with sales agents operating on the east coast. VSA facilitates services provision to business in the areas of telecommunications, finance, insurance and information technology and is offering the SOX solution to its client base.
* IT Wholesale - a division of the listed Cellnet Telecommunications Group, a leading distributor of telecommunications and IT products. ITW will be establishing a sales channel for SOX within its existing IT customer base.
* Easy IT - a division of the listed Powerlan group, which provides outsourced IT managed services and products to the SME market. EasyIT will be marketing SOX as "EasyVoice" to Powerlan's existing customer base and its own sales channel.
* AWA Technology Services - AWA will provide coverage in all Australian cities and regional areas for nation-wide installation and support for Tennyson's products.
Tennyson also advises it is in advanced negotiations with major leading Australian telecommunications, call centre system and IT servicing and outsourcing companies.
NOTE RE ING AUSTRALIA SHAREHOLDING IN TENNYSON
Tennyson wishes to clarify the interpretation of a report to the ASX last week in which ING Australia Ltd lodged a Form 605 change in substantial shareholder notice in relation to Tennyson shares. This notice has been misinterpreted by some market watchers as suggesting that ING had sold down its holding in Tennyson recently.
Tennyson has been advised by ING that there has been no other change in its Tennyson position since December last year.