Frontline and Olicom in Funding Row

Olicom and Frontline will end their supply partnership unless both companies gain mutual financial commitment to kickstart stalled growth.

Chris Underhill, Frontline networking manager, is demanding that the Danish vendor invests more money, time and people into marketing Olicom?s products. But Olicom UK channel manager Carina Klasse has stated that Olicom needs focused distributors to grow the high-end side of the business following its purchase of Crosscomm in March.

Underhill said: ?If Olicom can?t agree to grow the level of investment then as far as I?m concerned there?s no point continuing. The vendor has to work with us.?

Klasse admitted that last summer Olicom nearly terminated its contract with Frontline. ?But then Underhill came on board and I felt more positive. But does Frontline fit in with our business?? she said.

She added that if Frontline was to convince Olicom that it was able to boost sales, which have been at a standstill for many months, Olicom would increase investment by funding a head at Frontline.

Klasse denied the vendor was in talks with other distributors, and expected to announce any changes before Networks 97.

Ingram Micro and Persona sell Olicom?s Ethernet and ATM local area products, while Azlan handles its products on a pan-European level. Frontline, the first UK distributor to sell Olicom, distributes its adaptor cards.