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ViVOtech, a maker of point-of-sale and contactless readers, is restructing its operations and selling off its reader business. A story from Dan Balaban at NFC Times said the company might be closing its doors, but ViVOtech has responded to the report by dening that it is ceasing operations, and saying that the company is instead restructuring to focus on its software business.
Balaban spoke with sources familiar with ViVOtech's plans who said the company has been experiencing cash flow issues, but ViVOtech said in its statement that its fundamentals are strong. It did say, however, that it will be reducing its team.
Founded in 2001, ViVOtech was one of the first POS makers to integrate NFC and contactless technologies into its readers. Along with contactless readers it also offers a TSM and mobile wallet solution.
ViVOtech has partnered on several NFC programs such as Google Wallet and Isis, and has sold more than a million of its terminals to merchants, including McDonalds and Subway restaurants. It announced in March that it had raised a Series D round of funding to bring its total raised to $96 million since the company's inception.
The company's full statement to Mobile Payments Today is below.
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 no making no other public statements.
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