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

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:


Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news