Enclosed is the interim report for the first half of 2012 and the condensed consolidated financial statements as at 30 June 2012 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
16 August 2012
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
During the second quarter of 2012, Thinfilm made several breakthroughs towards commercializing printed memory and integrated systems. The company secured its first substantial commercial agreement and extended an important technology partnership to develop fully printed sensor tags. Thinfilm also successfully delivered system prototypes and engineering samples, including deliveries to a customer outside the toys and games industry.
Highlights:
* Secured significant strategic agreements: Entered into commercial agreement with Bemis Company Inc. ("Bemis"), a Fortune 500 flexible packaging manufacturer, to deliver a customizable sensor platform for Bemis' existing product lines. Extended technology partnership with PARC, a Xerox Company, for the development of printed temperature sensor tags.
* Successfully delivered system prototypes and engineering samples: Unlocked a new market by making first system prototype deliveries to a customer outside the toys and games industry. Delivered custom engineering samples of the Passive Array Memory to a leading toy company.
* Extended IPR position: Received favorable review on a patent for printable protection for memory devices and other printed components.
* Strengthened internal capabilities to accelerate roadmap: Hired additional technical staff and took first steps towards establishing an in-house printing facility.
In July 2012, Thinfilm announced a strategic partnership with Bemis, a leader in flexible packaging and pressure sensitive materials, to commercialize Thinfilm Sensor Tags within the Bemis Intelligent Packaging Platform. The sensor platform will be based on Thinfilm's ongoing development work on electronic tags to collect sensor data and store information for later retrieval. The design allows the tags to be customized to meet the individual requirements of Bemis' customers. "The agreement marks a substantial commercial milestone for the printed electronics industry. Flexible packaging in North America alone is estimated to be a USD 18 billion market. Bemis is the innovation leader and largest player in this market and has stated that printed electronics could become a part of every package they manufacture," says Jennifer Ernst, Vice President, North America.
In June 2012, Thinfilm and PARC, a Xerox company, extended their technology development partnership to develop key logic blocks for low-cost time-temperature sensors. The project extends Thinfilm's award-winning Addressable Memory(TM), demonstrated in October 2011, to support the integration of printed sensors and batteries.
During the second quarter of 2012, Thinfilm unlocked a new market for stand-alone memories by delivering system prototypes and engineering samples to a Forbes 2000 company in the security solutions industry. Following the successful delivery, Thinfilm has continued discussions with this customer on design protocols for integration of printed memory in their product line. Thinfilm also made first deliveries of its Passive Array Memory(TM) to a leading toy company.
In June 2012, Thinfilm received positive review of its patent application for printable protection layers. The novel invention, consisting of stress and scratch resistant films, improves the robustness and extends the lifetime of printed electronic devices. "We expect the patent protection to be broad, and the technique to be applicable to both current and future Thinfilm products. This patent extends our technology base and is an example of our ongoing innovation within printed electronic systems," concludes Christer Karlsson, Thinfilm Chief Technology Officer.
During the second quarter of 2012, Thinfilm also strengthened its internal capabilities to accelerate development of engineering samples and prototypes of printed integrated systems. Thinfilm began upgrading its cleanroom facilities to support high-definition printing, including order of pilot scale gravure printing equipment. The in-house manufacturing line provides tooling for process and product prototype development, and the capacity to handle small-scale commercial orders. In addition, Thinfilm continued to grow its development team in Linköping, Sweden, by recruiting senior technical staff internationally.
