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

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news