Covata chief and former Telstra dot com exec Ted Pretty says a now-dead relationship with US tech giant Cisco was “frustrating and unrewarding”.
The data security company told investors on Thursday afternoon that Cisco had terminated a software licence agreement with Covata — originally signed in March 2015 — effective from September 24, 2019.
The agreement provided a 12-month notice period for termination.
Covata said Cisco “never actively pursued the use of Covata technology named in the agreement despite representations of their intention to do so made by their management in 2015 and 2016”.
Covata said it tried to engage Cisco on the agreement over the past two years, but failed to get their attention.
“This closes off what has been a frustrating and unrewarding relationship for the company,” Mr Pretty said. “It does not distract from our continuing sales momentum in the US and globally.”
Covata shares were flat on the news. The company has been approached for comment.
More to come