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.
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