Solid financials complete an exceptional year
Q413 and Q114 have seen a number of positive commercial and strategic developments at Thinfilm Electroni, (THIN.OL) culminating in the acquisition of Kovio’s NFC technology in January, which could be transformational for the business. In this context and with the company’s relatively early stage of development, the financial results do not give full insight into the business’s performance. Nonetheless, the results were positive, with revenue above our forecasts and a strong cash balance as result of the NOK280m Invesco investment. Thinfilm is therefore in a strong position to accelerate development and meet its important FY14 milestones.
Revenue for the year was NOK11.5m, 15% above our NOK10.0m forecast. It still primarily comprises technology access fees and grants. Importantly, however, first product revenues have been recognised as the result of the sale of brand protection products to a luxury goods manufacturer. Normalised loss before tax (excluding share based payments and associated tax provision) was NOK63.3m compared to our forecast of NOK51.2m, mainly due to expansion of laboratory facilities and hiring new staff. We will shortly be publishing an Outlook note, which gives a deep-dive review of the market, product range and impact of the Kovio acquisition so, for now, our estimates remain unchanged.
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