Qnetix Network Services Inc. Fiscal year 2000 was a year of transformation for Qnetix. Management undertook specific initiatives which improved the operational and financial position of the company. Qnetix management repositioned the company to focus on its core competency of 24x7 remote network management services. These services enable Qnetix clients to realize reduced costs of telecom carrier services, smaller costs because of network failures and lower costs of IT network support. The company's revenue from these services comes in the form of monthly recurring revenue which is normally a set price per managed device.
Most contracts are multi-year.
Independent research groups such as The Yankee Group and The Gartner Group have identified a strong and growing demand for outsourced network management. Qnetix management believes the company is well positioned to capitalize on this growing demand by le veraging its existing network operations centre infrastructure and the advanced technical skills of its employees. The comp any wrote off assets that were associated with these discontinued lines of business. Wherever reasonable, debt obligations were reduced. The result is a leaner and more flexible company.