Sunday, 15 Sep 2019

Thin Film Electronics reports interim financial results for Q1 2015

The company is preparing to increase production capacity by development of roll-to-roll manufacturing processes that is expected to see up to a billion-unit scale

5 May 2015 | Editor

Thin Film Electronics (ThinFilm) has announced their first quarter financial report for 2015. Thinfilm’s revenue and other income in the first quarter of 2015 was lower compared to total revenue in the first quarter of 2014 .

Sales revenue was largely related to technology access fees, product development projects, product deliveries and delivery of prototypes and products to strategic customers and partners. The decrease in sales revenue year-on-year is mainly a consequence of fewer project milestones during the quarter and lower JDA activities.

Revenue related to government grants and other funded projects showed an increase and is largely explained by higher activity in existing project as well as net new projects being progressed.

Operating costs amounted to US$ 7,142,000 in the first quarter of 2015, the corresponding figures for the same period in 2014 were US$ 5,877,000.

The cash balance on 31 March 2015 amounted to US$ 23,542,000. The cash balance on 31 March 2014 amounted to US$ 34,814,000.


Thin Film Electronics reports financial results
for Q1 2015 (USD ,000) now reporting in USD
Revenues - Sales 253 349 1,8494
Revenues - Other operating 380 288 2,140
Revenues - Other incomes 65 513 490
Revenues - Total 698 1,150 4,479
Operating Costs (7,142) (5,877) (28,970)
Operating Profit(loss) (6,788) (4,948) (25,796)
Net (loss) Income (6,728) (4,767) (25,096)
Net per share - basic(NOK) (0.01) (0.01) (0.05)

Business review

The first quarter of 2015 was a productive period for Thinfilm across its product spectrum. The Company’s licensing agreement with Xerox for the mass production of Thinfilm Memory was formally announced, and the technology transfer activities required to have Xerox operational by year-end progressed. Thinfilm announced the launch of NFC OpenSense prior to Mobile World Congress, combining the milestone with news that the Company, together with Diageo – the world’s leading spirits manufacturer – demonstrated a connected “Smart Bottle” with the iconic Johnnie Walker Blue Label brand.

With the signifcant customer interest in NFC OpenSense, Thinfilm has realigned its activities to focus on three key product areas:

  • EAS anti-theft labels
  • NFC OpenSense
  • Smart Label platform (a combination of sensors, displays, and in some products, NFC readout)

In line with this shift, the company has discontinued development activities in the toy market and has diminished joint development activities. Delivery of EAS labels as part of a 13,000,000 unit order from Nedap commenced in Q1, and is expected to continue monthly in Q2/Q3 to complete this initial call-off.

Given that projected demand for NFC OpenSense could exceed available capacity soon after commercial shipments start in Q3, management is also preparing to increase production capacity through de-bottlenecking and by development of roll-to-roll manufacturing processes that are expected to enable up to a billion-unit scale.


Thinfilm concentrates its efforts around commercializing and scaling printed memory and logic:

  1. single function products such as printed memory and EAS
  2. integrated systems including RF communications, sensing and display
  3. licensing its technology platform to scale up partners

The company is investing additionally in the development and scaling of roll-to-roll production of logic, displays and batteries as well as roll-to-roll assembly. The combination of a licensing based business model, low CAPEX requirements for production relative to other electronics manufacturing techniques and a focus on leveraging ecosystem partnerships reduces the company dependence on CAPEX for growth. This strategy is expected to lead to an increase in license revenues during 2016 and a consequent reduction in direct product sales as compared to what was previously anticipated.

In addition, Thinfilm will work toward commercialisation of integrated systems such as Thinfilm sensor labels for consumable goods, health care, packaging, and more. Thinfilm has established partnerships for display, sensor, and battery technology, as well as software and distribution. First generation integrated systems were delivered to customers in the third quarter of 2014, additional demonstrator deliveries were made in Q4 2014, and production capacity in significant volumes is expected in late 2015.

In January 2014, Thinfilm acquired technology, intellectual property, and manufacturing assets from Kovio, Inc. Thinfilm demonstrated the Company´s first wireless temperature sensor label in Q2 2014, 18 months ahead of original schedule and has since launched NFC OpenSense based on the acquired NFC Barcode technology as a differentiated product in the NFC market. Since the launch of NFC OpenSense in late February 2015, Thinfilm has experienced significant interest in the technology and has received orders for its products.

Both the Board of Directors and management are optimistic that Thinfilm will be able to enter new commercial agreements for printed integrated systems and NFC sensor labels during 2015.

Source: Interim-Report-2015-Q1.pdf


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