Quadtel's financial security is back on track after several months of restructuring, according to recently appointed chief executive officer Rodney Orrock.
Soon after Quadtel acquired Marketing Results, Orrock was named group CEO and began rationalising the company's operations to ensure it had a secure future. Quadtel has now reported revenues of over $1.47 million for July 2001 and has managed to break even with an EBITDA profit of $41,300 for the month.
Orrock said the combined company had been struggling to form a solid entity. It was operating out of multiple facilities and had staff in duplicate roles, which necessitated some hard decisions to streamline the company and keep its cost structure in line with its revenue flows. "The integration of Marketing Results and Quadtel was a process that took longer than we first thought."
Much of the trouble, in Orrock's opinion, was how the company perceived itself. "We are a distributor of products, selling to resellers of those products," he said. "But until recently some of the sales staff thought we were an end-to-end solution provider. What's that?
"The sales and marketing teams are now focused on what we are actually doing, rather than what we think we are doing."
The restructure has seen 10 staff exit the company since the acquisition -- either through redundancy or natural attrition. Quadtel has also shut down its operation in Singapore, where Orrock believed the company could not match it with competitors that could survive on margins of around 3 per cent.
But while the restructure has seen the company rationalise some parts of the business, other business units are expanding. The old Marketing Results business has taken on several new vendors, including Symantec, Maxtor and several peripherals products from Acco (ie, the Kensington range). Orrock also highlighted the positive margins involved in "republishing" software from the likes of Dragon, New Tech Infosystems and Dimension Software.
Orrock said the distributor is keen to assign new vendor partners, if they fit Quadtel's new model, and also aims to expand beyond distributing to retailers and begin working with a broader reseller base.
Photograph: Rodney Orrock