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

 

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news