Although Hayes International has affirmed it will continue trading in Australia despite recently ceasing operations in the US, Australian analysts are predicting a dire future.
"Once you find the parent company has gone, the end is nigh," said Graham Penn, Australasia general manager for research with analyst IDC.
"Hayes is struggling because there just isn't the market for external modems anymore. Their days are numbered."
However Nigel Croisdale, Hayes vice president of international operations, claims the company remains intact, autonomous, profitable and solvent.
"We have a strong market share in key countries and do not rely on the US for product supply or financing."
Despite these assurances, Croisdale says the company is currently negotiating with a number of unnamed third parties to invest in Hayes International to ensure "a sound and successful future".
As Hayes files for "Chapter 11" in the US, Janette Marshall, Hayes marketing manager, Australia, claimed it's business as usual for now.
"Last year we saw a 20-30 per cent increase in unit sales. We still see Australia as a possible growth area, particularly when you consider the rise in Internet usage," said Marshall.
But, Marshall conceded the home market has been hit hard with the majority of home PCs coming with built-in modems.
"External modems are certainly a declining market, people have been saying that for years. But we still feel there is business here in Australia. It's just a question of targeting the right market.
"We didn't expect to see the growth we had last year," Marshall said.
Hayes currently retains the technology embodied in its modems and remote access devices and intends to maintain its brand name, company officials said.