CommsChoice restructures to focus on channel sales

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CommsChoice restructures to focus on channel sales

Listed cloud telephony company CommsChoice has revealed plans to restructure its sales and customer service operations to favour its growing channel sales business.

The company said in an ASX announcement and presentation (PDF) that it expects to cut eight roles to recoup $2 million in annualised cost savings.

CommsChoice’s channel sales division Key Partners and Indirect Sales will get additional resources on the back of “strong positive momentum” with channel partners, dealers and IT services providers.

Its offshore call centre will also be downsized, with key functions brought back to Australia, and will invest in an enhanced ecommerce platform.

“We were not seeing the level of customer service and responsiveness we needed in our business to satisfy the needs of out Australian business and corporate customers,” CommsChoice interim chief executive Peter McGrath said.

“The restructure will improve customer service and focus sales activities on more immediate opportunities largely with partners and IT service provider customers.”

Moving forward, CommsChoice will focus on its cloud-based phone and comms solutions for businesses, partner solutions for its channel partners, telco services and expansion into overseas markets - particularly in Asia.

The company expects to spend an estimated $18.4 million on the restructure, which includes $16.3 million in write-down of non-cash related goodwill and other assets. The half-year results for the 2019 financial year result gets a $600,000 hit, forecasting a loss for the period.

The company will also attempt to raise capital, with a share purchase plan aimed at bringing in at least $1m.

The planned outcome is a stronger  FY 20 EBITDA of $1,8m-$2.2m, a jump from DY 19's $0.1m result.

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