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NEW DELHI: Seagate has terminated the distribution agreements it had with eSys Technologies Pte Ltd.
According to an eSys statement, Seagate had requested an intrusive audit of eSys's documents during the current quarter. eSys has declined access to a wide-ranging series of requests, citing in particular its commitment to the confidentiality of data relating to its customers and other vendors.
There have been protracted negotiations starting October 2, 2006, during which time Seagate has repeatedly refused to provide shipments of its products as required under the agreements.
“Despite this, and as a sign of good faith, eSys has continued to pay Seagate for invoices raised, bringing down outstandings from $103 million to $50 million, a fact acknowledged by Seagate as well. eSys has a long history of meeting its commercial liabilities in full, and intends to continue this record,” the statement said.
eSys also added that it strongly refutes any allegations of irregularities in its compliance of the agreements. Over the last six years, eSys has been supportive of Seagate's and Maxtor's strategies, even at some cost to itself and its shareholders.
“Unfortunately, the intrusive nature of the audit would not be justifiable to our worldwide business partners under normal business practices,” eSys said.
eSys further said it is looking forward to an amicable solution to the current issue, which will benefit the channel.
The Indian entity, eSys Information Technologies Ltd., however remains unaffected by the recent development as the Seagate business was not a part of eSys India product portfolio, the statement said.
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