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CFO’s left clueless on Cisco valuations and resales

  • 26 September, 2006 11:33

<p>CFO’s across Australia are losing hundreds of thousands of dollars on the value of their company’s disused Cisco computer hardware systems, according to a former IT international broker who has set up a unique technology asset disposal business.</p>
<p>Maria Bottomley, recently established TechnologyRemarketing – an innovative business that conducts audits on Cisco assets and disposes them on the international market for a higher dollar value than CFO’s who are writing off their hardware assets with a nil value.</p>
<p>Commonly undervalued Cisco hardware includes broadband Routers, line cards, network modules, and port adapters. The major market for Cisco systems is the United States.</p>
<p>“Amazingly, accountants are placing a written-down zero valuation on the books for depreciated Cisco hardware assets, but on the open market this IT equipment may be worth a considerable sum.</p>
<p>“For example, I recently carried out an audit on surplus Cisco, with a nil valuation on the books, but we ended up selling the equipment on the international market for $20,000 – the client was absolutely thrilled.”</p>
<p>Ms Bottomley said with technology moving so fast companies and government agencies upgrading their computer assets every two years, CFO’s had no idea who to contact or where to go to offload their outdated Cisco equipment.</p>
<p>“If people were selling a BMW series 3 sports car to upgrade to a series five they would not just give their car away because its value had been written down to zero on the books.</p>
<p>“They would do some research and get the best possible return on their investment.</p>
<p>“No one in any major Australian organisation seems to know what their Cisco network gear is worth – it sounds crazy but it’s true – and there are literally millions of dollars worth of Cisco hardware that are just being dumped and left disused in warehouses.</p>
<p>“Being a Cisco specialist I am one of just a few people in Australia that can value the Cisco system, whether its still being used or about to be pulled from the network.</p>
<p>“In some cases clients ask me to onsell the surplus equipment to the highest bidder, either here or overseas – and I do this for a fee – ensuring the client receives the best possible return for their assets.” she said.</p>
<p>The New South Wales based business, which only began in February this year, is proving to be a big hit and has already secured a number of jobs with major IT and telecommunication companies and government departments.</p>
<p>Ms Bottomley said TechnologyRemarketing offered a set fee for service, which gave clients a clear idea of the return on their investment, unlike many brokers who were simply buying the product for a price and the selling price was not transparent to the client and often astonishingly higher.</p>
<p>“The real value of my service is when clients are faced with a liquidation of assets, a takeover/merger or an end of lease arrangement.</p>
<p>“The rule of thumb for CFO’s when evaluating their Cisco systems is full market value less approximately 30 per cent if it is onsold to brokers, dealers or auctioneers.</p>
<p>“For Cisco products that have no market value, but is deemed surplus, organisations should make the equipment available to TAFEs, charities and schools,” she said.</p>
<p>TechnologyRemarketing has a systematic approach to generating high value returns on Cisco assets for their clients. This involves:</p>
<p>· Receiving an assets list from a client that identifies disposable equipment and providing an appraisal of approximately what that equipment is worth;</p>
<p>· Conducting an audit by reviewing an assets list of the Cisco, with serial numbers which are checked on the Cisco site to make sure the correct model number is on the assets list, and if that machine is still supported by Cisco;</p>
<p>· Assessment of Cisco equipment to determine if it should contain modules/cards. If these are not on the assets list the client will supply these details, either by technicians who identify what is in that machine, or the maintenance contract which should show all the details; and</p>
<p>· Conducting a Fair Market Valuation on the equipment, as some of the Cisco can be sold on the International Market.</p>
<p>TechnologyRemarketing can also assist businesses in selling a range of surplus IT equipment including PCs, servers, laptops, monitors, networking equipment and telecom gear.</p>

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