Not even a restructuring of its business in April last year to sell high-end disk drives could stop Micropolis from falling into the hands of receivers. Last week Micropolis officials finally admitted that the company's financial position and market conditions would not allow it to continue to function profitably.
A Micropolis spokesman claimed 1997 proved to be a very difficult year with the entry of three more major players in the enterprise storage industry. As a result prices fell and margins were also squeezed while Micropolis' warehouse inventories rose.
The company's revenue for the first three quarters of 1997 totalled $US140 million (roughly $US15 million per month), far below the monthly target of $US45 million, and officials held out little hope for improvement next year.
Micropolis' Australian distributor Lan1 was unable to comment on Micropolis' plight and its affect on distribution strategies at the time of publication.