Kevin Barber has come in as CEO replacing, long-serving CEO Davor Sutija, and reported that discussions with a potential strategic equity partner were not set to bring about investment at this time.
The company said the restructuring is being made to align the business with current market adoption of NFC and that it will focus resources on its brand protection and consumer engagement products.
The company has decided to pause the development of printed dopant polysilicon (PDPS) technology and reduce its global footprint. The plan for a 40 percent reduction in the work force is designed to achieve nearly $20 million in annualized savings.
The Q4 2018 update noted that previous management had been too optimistic about the timing of increased demand for NFC solutions, the need for a PDPS solution and had mistakenly pursued a sub-optimal go-to-market strategy. Thinfilm will discontinue the current electronic article surveillance (EAS) business after exhausting existing inventory with its leading customer.
“I am very disappointed that we need to take these drastic steps, especially given the significant contributions of individual team members and I’d like to thank them for their commitment and wish them well for the future” said Barber, in a statement.
Thinfilm said it continues to engage in multiple discussions with potential strategic partners looking to integrate NFC tags into specific components.
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.