Systems Union is launching a new version of its mid-range accountancy software product, SunSystems 5, this week. The product is the culmination of £30m investment and 400 man-years of development, according to the company. Systems Union was bought last year by Freecom.net, owner also of Pegasus. The group, since renamed Systems Union, has cut staff from 1,700 to around 900.

In an interview with Sunday Business chief executive Paul Coleman said: "No-one at Systems Union seemed to realise how serious the company's situation was when we bought it. They had basically run out of cash after committing large sums to new product development. The infrastructure was fragmented, there was a lot of overhead and too many people worked at head office and in marketing." House Broker Peel Hunt forecasts a full year loss of £21m in 2000 and profits of £3.3m in 2001, according to Sunday Business.

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xbidit, the channel-only auction site, is closing its weekly auction at midday Wednesdays, two hours earlier than before. This should ensure delivery of product by the following Friday, the company says.xbidit was started this year by channel veteran Alistair Handyside with backing from 3i.

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Two consumables channel stories this week from Microscope. HP has cut consumable prices, reversing the trend which has seen the company raise prices five times in 13 months. But resellers say cuts are
"too little, too late". Xerox, the cash-strapped document company, is pledging to end the drought of printers consumables in the channel, within the next few weeks.®