Teltronics, Inc. (fka TELTQ)

[sludgehound]

King Tech was 1 of 3 distributors

Posted on Thu, Dec. 16, 2010
TELTRONICS LOOKS TO BETTER SALES IN 2011
Palmetto company hires distributors in new business model
By GRACE GAGLIANO
[e-mail]
PALMETTO -- Teltronics has some big name clients in its portfolio.

Contra Costa (Calif.) County, the New York Department of Federal Corrections, and the New York Board of Education are clients that use the Palmetto manufacturer’s business class telephone systems.

Chris Doyle, vice president of marketing at Teltronics, says clients like these that have helped the company in the past turn collective quarterly revenue averages of $10 million to $12 million.

But in these economic times Teltronics has seen its clients scale back and quarterly revenue has dropped to about $6 million to $7 million.

“We have had a very rough year this year,” Doyle said. “That’s exactly why we’ve gone to this new business model.”

For the first time in the company’s 40-year history, Teltronics is employing distributors to help drum up new business and sales for its telephone systems that are equipped with Web-based cameras, intercoms and paging speakers.

The manufacturer on Wednesday announced the first of three distribution partners it will contract with in 2011. King Technologies, Inc. will help distribute Teltronics’ products to its family of dealers, which will also work as a sales force for the manufacturer.

“Partnering with a prestigious distributor such as King Technologies to build a strong distribution channel is the ideal way for Teltronics to expand our business operations while providing the end user customers the best customer service and support,” said Ewen Cameron, chief executive officer for Teltronics.

Teltronics would not disclose the details of two other distributors it has in the works but Doyle said its distribution partnerships are expected to give Teltronics at least 100 dealers for its product in 2011.

“This will allow us to push our product out a lot wider,” Doyle said. “We anticipate the distribution opportunity will increase revenues.”

Sales for the third quarter ending Sept. 30 were $4.5 million, down from $11.5 million over the same period in 2009. Year-to-date through Sept. 30, Teltronics’ sales are $12 million down from $27.6 million over the first nine months of 2009.

The sales declines were largely due to a reduction in orders from one of Teltronics’ largest customers.

Mark King, chief operating officer for King Technologies, says the distribution strategy will be to not limit sales to what has been Teltronics primary focus -- municipalities and schools. Instead, King said the distribution will focus on developing relationships in new markets.

“We look forward to working with Teltronics to establish a robust distribution channel for their products,” King said.

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