Software developer and Internet services firm, DataEase has been placed in voluntary administration today after its primary fiscal backer, Senetas Corporation withdrew support.
Senetas has a 58 per cent holding in DataEase, at balance sheet cost of $955,000. The Senetas board sets benchmarks for continued growth and development for all its invested business and, although DataEase is operating at or above break-even profitability it has not been able to meet these quotas due to a market driven profit downturn.
In addition, DataEase is experiencing a liquidity squeeze as debtors draw out payment schedules. It appears the company's revenue steam has become so frail over the last six months it is struggling to pay staff salaries, which represent the majority of its operating costs.
DataEase continues to operate under the administration of accountants Bent & Cougle. However, without Senetas' on-going financial support its future is questionable.