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Is ViVOtech closing its doors? CEO Mick Mullagh says no

The NFC (near field communication) software and POS systems company ViVOtech is reported to be shutting down its operations, despite securing nearly $100 million in funding over the past ten years. However CEO Mick Mullagh says otherwise:

“ViVOtech’s business fundamentals are strong and orders and contracts are building in both its reader and software businesses. Over the last six months the company has been executing a strategy to divest its reader business to a qualified buyer. This sale has moved slower than anticipated. ViVOtech has not ceased operations but is in the process of restructuring operations and has reduced its team to a smaller group with the goals of maintaining customer relationship and core contract work, and to address our supplier relationships and commitments, as the company completes plans to divest the reader business and focus on the Software Business. ViVOtech is in dialog with its customers and suppliers on the current situation but will be making no other public statements”.
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ViVOtech develop POS systems and NFC products such as smart posters, contactless readers, writers, and various other software programs. They have also partnered with some of the biggest players in the industry like Google (Google Wallet) and Isis in an NFC joint venture between the largest US mobile companies Verizon, AT&T, and T-Mobile.

This apparent closure comes as an unexpected turn of events, considering the staggering numbers (one million terminals shipped, 80% of the market share for NFC products in the US and double digit millions in sales) and the heavy weight brands that are using their array of products (McDonald’s, Whole Foods and Home Depot).

The questions raised on how this could have happened are abundant. The current consensus is that ViVOtech perhaps hit the market at a stage before NSF technology exceeded market expectations or that their partners VeriFone dropped the relationship in favor of pushing their own reader. Either way, one thing is for sure; the industry players are baffled by this unexpected news.

Context taken from: http://techcrunch.com/2012/07/27/report-google-nfc-partner-vivotech-shutting-down-operations/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29