Buoyant Telesyn thrives on losses

By PETER GRIFFIN

Thriving Christchurch hardware developer Allied Telesyn reported a loss of more than $500,000 last year.

But it is still experiencing high growth, management says.

Staffing at Allied Telesyn, which designs high-capacity telecoms switches and routers, has jumped from less than 30 to around 175 in little more than two years, as developers complete new products which are sold internationally by its global parent Allied Telesis KK.

Documents filed at the Companies Office show Allied Telesyn had sales of $13.3 million last year and a loss of $528,000. In 2000 revenue was $12.3 million with an operating deficit of $400,000. Both years it paid no tax.

Director Geoff Peck said that was not an accurate sign of how the company was progressing because Allied Telesyn was solely occupied with research and development and had no local sales as such.

"This place is funded by the global organisation and we then sell our services back to the global company."

Intellectual property developed in Christchurch was transferred to the company's manufacturing plants in China and Singapore and then sold into the three main markets of Japan, Europe and the US.

Despite its distance from the main markets where the high-end equipment it designs is used, Allied Telesyn was having no problems attracting skilled staff.

"There's plenty of talented people around [even though] it is a smaller market," Peck said.

While Allied Telesyn had advertised some positions in the US and Britain, local graduates had boosted staff numbers. The company hired 30 graduates last year.

The research and development operations were also expanding, rapidly filling capacity at the company's existing site.