Y3K Group`s sales team, which was under threat of retrenchment, is to be kept on.
CEO Ryan Price has sent the company`s clients a letter updating them on developments at the group since he replaced Sonny Fisher, who resigned last month to become a software dealer.
Fisher confirmed earlier this month that the five staff on the sales team had been told that to cut costs they faced the possibility of retrenchment as the group was looking at a new model in terms of which the technical team would be responsible for sales.
He said at the time that it was up to the sales staff to justify remaining at the company.
However, last week he told ITWeb that "it appears as if all the sales people will be staying at Y3K. Amazing what happens when a team comes together."
Price says in the letter to clients: "Every facet of the company`s activities has come under the spotlight and, where necessary, costs have been rationalised.
"One of the key areas where the company has had to concentrate is the building of an infrastructure where all employees work together as a cohesive team. In order to achieve this it was necessary to get the sales team to undertake a self-motivated initiative to add value to the group and embrace the team.
"By contrast, Y3K`s technical support has been reorganised in order to give our clients better, faster and more beneficial support. As this area is critical to achieving a proper level of service, my focus as incoming CEO has been to co-ordinate the two teams to work together and move forward."
Price says the purpose of the letter is to assure clients, who may have become uncertain about Y3K`s future direction, that the company is committed to meeting their needs.
He says the company has several developments in the pipeline which will add depth to its product and service offerings.
"However, our expansion plans will be firmly based on achieving growth with stability and with a quality earnings stream."
Y3K reported a R2.2 million net loss for the year to February, an improvement on the R3.5 million loss the previous year. Management blamed operational problems and poor financial structures for the loss.
The company said at the release of the results in June that it expected a trading profit for the current financial year but warned that it was depending on its bankers and suppliers to provide continuing finance for its business activities.
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