Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Canada's Smart Technologies to wind down Next Window

Canada’s Smart Technologies to close former local tech darling NextWindow

By Paul McBeth

Feb. 7 (BusinessDesk) - Canada’s Smart Technologies has given up on New Zealand-based NextWindow, which it bought in 2010 for US$82 million, and plans to wind down the unprofitable touch-screen display developer in the next year.

Based in Calgary, Alberta, Smart today announced plans to exit its optical touch sensor business for desktop displays and expects Next Window to be wound down by the end of its 2015 financial year, it said in its third-quarter results. Chief executive Neil Gaydon told a conference call the decision was because NextWindow hadn’t met earnings expectations, and wasn’t a part of Smart’s core business.

“We’re working closely with employees, customers and suppliers to manage our commitments during the wind-down period,” Gaydon said.

Prior to the Smart Technologies purchase, NextWindow was a poster-child for New Zealand-based technological innovation and had high hopes that its technology would be a leader in the then emerging market for touch-screen devices.

Smart Technologies’ quarterly accounts show NextWindow began restructuring in the three months ended Dec. 31, incurring US$2.9 million in employee termination costs, and a further US$281,000 in other restructuring costs.

Chief financial officer Kelly Schmitt told the call the exit will impact the parent company’s earnings by between US$30 million and US$35 million, of which US$14 million was booked in the third quarter and the balance will be recognised in the fourth quarter.

The Canadian company bought NextWindow in 2010, having filed suit for unspecified damages against the local firm a year earlier, when it accused the kiwi company of violating its Digital Vision Touch patent technology.

The local NextWindow office didn’t immediately respond to BusinessDesk inquiries.

Smart Technologies NW Holdings, the NextWindow holding company, widened its annual loss to almost US$39 million in the 12 months ended March 31, 2013 from US$13.9 million a year earlier, according to financial statements lodged with the Companies Office.

That included an impairment of US$32.2 million and US$9.5 million amortisation of intangible assets arising from the acquisition, writing off the remaining goodwill in the company. It had US$1.2 million of intangible assets as at March 31, relating to software and patents deemed to still have future economic benefits, the accounts said.

NextWindow reported an operating loss of US$7.2 million in the 2013 year, compared to a profit of US$478,000 a year earlier, as revenue slumped 40 percent to US$22.2 million, including a government grant of US$1 million. The touch-screen display developer won a three-year, NZ$5.9 million government research and development grant in 2011.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news