This appears to be a pivotal date as emails to the US office are being automatically answered by a message that simply states, “Unfortunately, Zultys has ceased day-to-day operations as of July 26, 2006. All company inquiries should be directed to Iain Milnes, president of Zultys Technologies.”
A separate statement from the company said: “We have been seeking financing for the past several months but have so far been unable to secure an investor. As a result we have had a reduction in our staff levels globally until we can close a round of funding in the next week or so.
Zultys is not bankrupt or insolvent. We have a great portfolio of products, a great team of people, and the best distribution and reseller partners in the world. The management team remains confident that we will be able to secure funding and continue operations soon.”
Long time sales driver at Zultys Justine Cross commented from the UK office this morning: “We have been waiting for new funding to come in but the money has been delayed. We are still here in the UK trying to keep the business going until the money comes in. We are still taking orders and shipping.”
Commenting on the apparent demise of Zultys Martin Hatcher, Chairman of distributor MTV Telecom said, “For smaller players in the PBX market it is really tough to compete without having a certain mass and financial strength.”
Alan Doyle, Managing Director of Harpenden based distributor Iridiacom has personal contacts with Zultys’ US based distributor CTD who are based in South Carolina. Doyle said that he had been contacted by CTD, who in an email to their US resellers said;
“Most of you have been notified of the happenings at Zultys yesterday (26 July). It was no secret that Zultys was looking for a new source of funding, but I do not think that anyone on the outside had any idea that it would come to this.
What we are hearing is that Zultys were trying to reach a deal with some investors and that that fell through at the last minute. There are, however, other avenues that were being explored that are still in play which could be even better in the long run. The short term is a bit more uncertain.”
Zultys has built a reputation world wide as having an innovative next generation IP PBX and UK staff have been infectious with their enthusiasm for the product. Further information will be provided as it comes in.