JSE-listed Square One Solutions has been appointed colour specialist distributor for Epson SA in a deal which should see the Japanese manufacturer making up 20% of Square One's revenue in the year ahead.
Square One CEO Trevor James said at a media function in Sandton yesterday that the new distribution deal would not conflict with its existing Xerox distributorship.
Xerox, now facing its own accounting investigations, uses Square One as a distributor, but James was quick to point out that there was almost no overlap in products.
"The Epson product ranges serve different markets and are not directly competitive. It does mean, however, that we are now in a position to offer a solution to just about any printer and peripherals requirement that may arise," says James.
The Square One Epson product range will focus on the high-end inkjets, laser printers, scanners, supporting consumables and specialist media products.
James says Square One has taken on the Epson product line which offers higher margins rather than high volume. Other distributors which work with Epson include JSE-listed Mustek and empowerment company Sahara.
Epson is emphasising its colour range of products and Epson SA general manager Hans Drummer says 60% of its laser printer range of products in the year going forward will be colour offerings.
"Square One gives Epson the competencies, marketplace positioning and access to new customers that will make it a force to be reckoned with," says Drummer. "We recognise Square One in the same way its channel partners do - as a value-add, solutions-orientated distributor."
The Epson distributorship will add significantly to Square One revenue and James believes that, on a conservative estimate, Epson products will contribute 20% of the company's revenue for the next year.
He says the group will be looking at achieving turnover of R200 million for the current financial year. The company achieved a turnover of R159 million for the year to December 2001, although it posted an attributable loss of R8.5 million.
Unable to comment on figures for the six months to June as the results are still to be announced, James did say the company was happy with its achievements for the year so far.
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