Allied Telesyn is turning away from ATM to concentrate instead onet. Fast Ethernet, after admitting it had made a wrong decision in 1997.
The network building blocks supplier is to move the majority of its R&D away from ATM in a bid to make the most of market opportunities. The company said it hoped to make a 30 per cent improvement on its 1997 sales figures, which are expected to reach between $250 million and $350 million for the financial year ended 31 December 1997.
Allied Telesyn insisted the change of focus would not affect its relationship with its existing UK distributors - Ilion, Micro Peripherals and Anixter - or its resellers.
It has accounts with systems integrators, including NCR, Unisys, Siemens, Dell and Bull in the UK.
Ernie Jones, northern European managing director of Allied Telesyn, conceded that the manufacturer was not large enough to have the infrastructure or revenue to support high-end technology. He also blamed a lack of support among corporates for its withdrawal from the ATM market.
'ATM has not reached the level of sales that was anticipated by the end of 1997,' said Jones.
He added that Allied Telesyn had realised last year that its Ethernet product portfolio was limited and had not anticipated the strong demand for Fast Ethernet.
Francesco Stramezzi, chairman of the European Council at Allied Telesyn, insisted it would be taking a more aggressive stance this year. 'We have learned that we must not wait for change to occur but must anticipate it happening.'
Allied Telesyn is due to hold a meeting with its major European resellers on 20 February to discuss details of the strategy change.
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