Enclosed in pdf file is the interim report for the first quarter 2013 for the Thin Film Electronics ASA group. See below for the business review section of the report
For more information contact:
Torgrim Takle, CFO: +47 95 14 07 82 / tt@thinfilm.no
8 May 2013
Thin Film Electronics ASA
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
BUSINESS REVIEW
Thinfilm started 2013 with the announcement of two commercial agreements that bring Thinfilm products to new markets. In March 2013, the Company also strengthened its financial position by completing a successful warrant round raising NOK 26.8 million.
Thinfilm started 2013 with the announcement of two commercial agreements that bring Thinfilm products to new markets. In March 2013, the Company also strengthened its financial position by completing a successful warrant round raising NOK 26.8 million.
Highlights:
- Received first order for unique brand-protection system: A global consumer packaged goods company ordered Thinfilm Brand Protection, a system of specialized printed memory labels to help thwart counterfeiting.
- Secured new commercial agreement for Printed Integrated System: Thinfilm entered an agreement to deliver Smart Labels to an international manufacturer of high-value labels.
- Successful completion of warrant round: Thinfilm raised NOK 26.8 million with more than 97% of outstanding warrants exercised.
In December 2012, Thinfilm successfully demonstrated a proof-of-concept system for temperature monitoring of perishable goods. This milestone was followed up with two signed, commercial agreements with global companies in March 2013.
A global consumer packaged goods company ordered the first use of Thinfilm Memory for brand protection. This system is based on a smaller and more compact version of Thinfilm's commercially available 20-bit memory, specially designed to help thwart counterfeiting. The brand protection system also includes a custom, handheld reader that tests the product label and verifies its authenticity. Designed for use within the supply chain, the system will enable brand owners to identify counterfeits and determine where in the supply chain they have been introduced (e.g., manufacturing site, transportation, shipping, customs or in store). The largest companies in the world lose billions of dollars each year to illegally copied products. The electronic signature embedded in the brand-protection labels makes it near to impossible for outsiders to falsify the merchandize. Additionally, the signal can be unique to each product line or manufacturer.
Thinfilm brand-protection labels will fit into the existing market of holograms, which estimated value is around USD 5 billion. "This is an extremely attractive op-portunity for Thinfilm as we have a commercially available product that is uniquely positioned in an existing multi-billion dollar market," says Davor P. Sutija, CEO of Thinfilm.
Also this quarter, Thinfilm entered a commercial agreement with an international manufacturer of high-value labels for printed integrated system labels (Smart Labels). Under this agreement, Thinfilm will deliver a complete Smart Label closed-system by Q1 2014. These two recent agreements extend the use of printed memory labels to new applications and show the versatility of Thinfilm technology. Adding to the previously announced agreements with Bemis and Hasbro, Thinfilm has secured four commercial agreements in the last three quarters. "Thinfilm has established a strong customer portfolio that provides a good balance between short and longer term opportunities for memory and system applications, respectively. Our commercial momentum is attracting additional customer interest," concludes Davor P. Sutija, Thinfilm CEO.
During the period 11-22 March 2013, Thinfilm received notice of exercise of 12,172,500 warrants (97.4% of the outstanding and exercisable warrants), thereby raising NOK 26.8 million in new capital. The proceeds from this warrant round, combined with the proceeds from the private placement accomplished 12 March 2012, are sufficient to fund the operations of the Company into 2014.
During the first quarter of 2013, Thinfilm took several measures to expand corporate marketing. In March 2013, Heidi Arnesen joined Thinfilm as new Communications Manager to lead the company's marketing and communications programs, and Thinfilm launched a new website. In January 2013, Thinfilm also established a subsidiary in Japan to strengthen its geographical presence in Asia.
