Smart Technologies to shut down NextWindow

Smart Technologies to shut down NextWindow

Summary: Canada's Smart Technologies is exiting the optical touch sensor display business for desktops.

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Announcing its third quarter financial results today, Canadian display technology company Smart Technologies announced it would exit the optical touch sensor business for desktop displays

That means it will shut down its New Zealand-based business NextWindow business which it bought for US$82 million after a patent stoush in 2010.

"The business is not part of Smart's core operations, as the components are used primarily for all-in-one desktop PCs, and profitability is not meeting corporate expectations," Smart announced today.

The company will focus instead on large format displays and software for education and enterprise customers.

Optical touch displays use sensors around the perimeter of the screen to track the touching object from multiple angles so no contact pressure is required.

Smart says NextWindow will work closely with employees, customers and suppliers to manage its commitments during this wind down period.

"The estimated one-time earnings impact of the wind down is currently US$30 to US$35 million, US$14 million of which was incurred in Smart's third quarter of fiscal 2014, and the balance of which is expected to be recorded in the fourth quarter," it says.

"The earnings impact is driven primarily by non-cash asset write-downs, and Smart's current expectation is that the wind down will have an immaterial impact on its cash resources."

The wind down is expected to be completed by the end of March 2015.

Smart announced adjusted revenue of US$143.4 million, up 4% year-over-year for the quarter to December 31. Adjusted EBITDA of US$19.3 million, was up 233% year-over-year. Net income was US$9.0 million.

Topics: New Zealand, Education

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2 comments
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  • Seems very short-sighted...

    We are just entering the era of touch-screen PCs and one of the most innovative touch-technology companies is exiting that business. There is a growing market for stand-alone touch screens that seems to be getting ignored by everyone except ELO (who seem to only make expensive screens for point-of-sale, medical, and other high-traffic use), Acer (who is.. ahem.. Acer), and Dell (who is also only making expensive displays).

    I would have thought a company like Smart would be pursuing this market more aggressively. Sad to see them make this move.
    daftkey
  • Bad dicision

    Touch-screen's market becomes larger and larger these days.The competition is more and more fierce.Maybe that's the reason why next window couldn't survive.But it's still a bad movement.Touch screen,multi-touch screen,large touch screen is a trend,it is becoming a part our life now.There's no doubt that this market still has lots of hidden profit,waiting for innovative companies.
    There are lots of companies are making thier contribution to this market. Check this amazing product which easily turns your TV or monitor into a large multi -touch screen:http://tabler.tv/
    Evan99