Sunday, 15 Sep 2019

Thin Film Electronics Q4 2014 and full-year 2014 financials

Increased customer activities led to more than a doubling of revenues, and also increased headcount and resource spend as the Company increased efforts to take products to market and accelerate the development of NFC based products

3 Mar 2015 | Editor

Thin Film Electronics (ThinFilm) has announced their fourth quarter financial report for 2014, and preliminary full-year results. Thinfilm’s revenue and other income in 2014 amounted to NOK 28.6 million. Excluding the other income recognised in the period, total revenue was NOK 25.5 million, an increase of NOK 13.9 million, or 121%, compared to total revenue in 2013 (2013: NOK 11.5 million).

Sales revenue amounted to NOK 11.8 million in 2014 (compared to NOK 5.3 million in 2013), and was largely related to technology access fees, product development projects, product deliveries and delivery of prototypes and products to strategic customers and partners.

Thinfilm developed operations significantly in 2014 compared to a year earlier. Increased customer activities led to more than a doubling of revenues, and also increased headcount and resource spend as the Company increased efforts to take products to market and accelerate the development of NFC based products.

The technical team in Linköping, Sweden, grew by 50%, and Thinfilm established an NFC Innovation Center in San Jose, California, USA, after the acquisition of certain assets from Kovio Inc.

Source: Thin Film Electronics

Thin Film Electronics reports financial results for Q4 2014 (NOK ,000)

Financials 2014
Revenues - Sales 3,568 2,900 11,798 5,334
Revenues - Others 4,694 2,370 13,657 6,206
Revenues - Total 8,298 5,269 28,580 11,540
Operating Costs (58,783) (38,178) (183,673) (93,176)
Operating Profit(loss) (53,054) (33,515) (163,355) (83,266)
Net (loss) Income (52,859) (32,613) (160,183) (81,601)
Net per share - basic($) (0.11) (0.07) (0.33) (0.021)

At the end of 2014, the number of full-time employees increased from 37 to 90. This increase is primarily a result of the establishment of the Thinfilm NFC Innovation Center after purchase of assets from Kovio, Inc., and increased headcount in Linköping, Sweden.

Investments amounted to NOK 32.2 million in 2014, an increase of NOK 15.0 million, compared to the same period 2013 (2013: NOK 17.1 million), dominated by the acquisition of assets from Kovio, Inc., in January 2014 and complementary acquisitions of equipment and tools for the two sites in Sweden and USA.

The company operates at a loss and there is a tax loss carry forward position in all significant group entities, such that the group has not incurred any tax costs in 2014 or the prior year.

The company has not recognised these deferred tax assets in its balance sheet, because this potential asset does not yet qualify for inclusion.

The Company’s balance sheet comprises essentially of fixed & intangible assets, cash, receivables, payables & accruals, and equity. Fixed assets amounted to NOK 36.2 million and stem from machinery and equipment in Linköping, Sweden, and San Jose, California.

In addition, NOK 17.2 million in intangible assets are on the balance sheet as a result of the acquisition of assets from Kovio, Inc. Moreover, in the fourth quarter of 2014 the Company started to capitalize development expenses of Thinfilm Memory, and as of 31 December 2014 NOK 0.2 million had been recorded on the balance sheet.

Principal Risks

Besides intellectual property and property, plant and equipment and inventory, Thinfilm does not have any significant assets or liabilities with risk.

The Company’s predominant risks are market and business risks, summarised in the following points:

  • Many of Thinfilm’s intended markets are still immature, and there is a potential risk of delays in the timing of sales
  • Thinfilm is dependent on continued collaboration with existing technology, material, and manufacturing partners
  • Product development risks related to eventual cost vs. functionality competitiveness of the products Thinfilm is developing

Thinfilm foresees two important revenue sources:

  • sales of its own manufactured products
  • licensing/royalty revenue


Thinfilm concentrates its efforts around three main areas:

  • commercializing memory and component products, including brand protection and EAS
  • developing and commercializing wireless, integrated systems and Smart Labels
  • licensing this technology platform to scale-up partners and customers

Thinfilm has unique and cost competitive stand-alone memory products as well as an EAS product with unique characteristics, and will continue to work toward large-scale commercialisation of these products.

In addition, Thinfilm will work toward commercialisation of integrated systems such as the Thinfilm Display Label and Thinfilm Sensor Label for disposable goods, health care, packaging, and more.

Thinfilm has established partnerships for display, sensor, battery technology, and software, and demonstrated the first prototype of a printed temperature sensor label with battery in early October 2013. Delivery of first generation integrated systems to customers took place in the third quarter of 2014, additional demonstrator deliveries were made in Q4 2014, and production in more significant

Commercialisation of first-generation integrated systems is expected in 2014.

The integration of near field communication (NFC) into Thinfilm’s printed integrated systems is expected to offer additional growth opportunities.

Applications for consumer mass markets will likely include brand protection, logistics, healthcare, and smart packaging.

Successful demonstrations of prototypes and products are expected to attract significant interest from prospective customers and partners, as well as from established companies offering competing products based on conventional technologies.

In January 2014, Thinfilm acquired technology, intellectual property, and manufacturing assets from Kovio Inc.

  • The acquisition provides Thinfilm with in-house NFC technology
  • Thinfilm expects to accelerate its wireless roadmap with demonstrations of NFC-enabled systems in 2014
  • Thinfilm continues to see significant interest in the Company and its technology, and is in ongoing discussions with both existing and new parties.


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