An administrator has blamed a slow sales pipeline for the demise of a local network optimisation vendor.
The founder of South Australian-based Foursticks, David Bohn, appointed Michael Basedow and Tarquin Koch of MHM as company administrators on April 22.
An initial creditors' meeting on May 2 formed a creditors' committee, Basedow said, and reached an agreement that the company would continue to trade while a buyer was sought.
Immediate cost-cutting measures involved staff redundancies, including the termination of Bohn's role, and relocation to cheaper premises.
The demise of Foursticks had mainly been due to liquidity problems, Basedow said.
"Foursticks had a combination of problems - it ran out of cash and it was taking too long for the sales pipeline to fill up," he said.
The situation was further exacerbated by the loss of a possible sale in the US, Basedow said.
The company was believed to have employed about 15 local staff and 35 globally across operations in Germany, the Netherlands, Germany and the US.
Foursticks was an early innovator of network optimisation technologies with its Net Prioritizer appliance and desktop software. Company investors included IBM - which was also its global reseller - and the Federal Government through its Building on IT Strengths program.
Local clients listed by Foursticks included the Commonwealth Bank, Santos, Bridgestone, Orlando Wyndham, BRL Hardy, Pasminco/Zinifex and Saab Systems.
In March, Bohn stepped aside to allow former EDS executive, Bruce Lin, to take the reins, after declaring that the company needed a different skill set to capitalise on its potential.