Telemedia still claims to be a New Zealand company despite being in the process of moving its head office from Sydney to the US.
“All our back office work, like accounts and our support engineers, are based in New Zealand and of course we do all our research and development there as well,” says chief executive Chris Jones.
Jones took the telecommunications software company to Australia in September 1999 to raise capital. “We went to Australia to provide the capital we needed to accelerate our growth and it’s done that for us."
Telemedia shares were at one point worth $A10 each. Shares bottomed out at around $A0.28 a share but came back sharply this week to around $A1, prompting the ASX to question Telemedia about the sudden three-fold increase in share price. Shares are now trading at around $A0.78 a share. In the meantime Telemedia was able to grow enough that it could eye up the US market.
“You have to look at the world as a global market and set your business up accordingly. Once you’ve worked out the strengths and weaknesses of your location you can work from there.” Jones says it is important to US companies to be able to talk to a US head office — especially with the big-name clients in the telecommunications sector.
“We’ve got tier one clients in Japan and other countries but in the US they really need to be able to see senior managers before they sign the big cheques.” Jones says this is the main reason for the move to the US and a reshuffle of board members. Currently the US makes up around 30% of Telemedia sales, neck and neck with Japan, but Jones believes it will account eventually for the majority of sales.