- Rob Bushway

Things appear to be looking up for InPlay Technologies, as they just inked a deal with a yet-to-be-named Japanese OEM, for implementation in rugged Tablet PCs:

InPlay Technologies (NASDAQ: NPLA) has received a conditional purchase order for its dual-mode, digital pen-and-touch solution from a leading Japanese electronics manufacturer. InPlay’s technology has met a full range of rigorous testing and is designed into an updated line of rugged tablet PCs. The purchase order is contingent upon successful completion of pre-production qualification.

“We feel that it is a strong validation of our technology and the benefits we bring to this market to be selected by a major Japanese OEM. Our digital pen and touch screen product is designed to deliver a high quality user experience consistent with our customer’s stringent requirements for durability,” said Ramesh Ramchandani, president and COO, InPlay.

Once final requirements are met, production is expected to begin in fourth quarter 2008. InPlay estimates that the project will generate approximately $1 million in revenue annually.

InPlay offers the only digital communication pen technology on the market, bringing significant advantages over traditional analog products. With InPlay’s integrated digital pen and touch solutions, the system automatically recognizes pen or finger input, allowing the user to choose the most natural and effective input method. The system also incorporates palm rejection to avoid unintentional input thereby creating a comfortable user experience. The active digital pen optimizes handwriting recognition and allows for added digital features, while the touch screen offers a quick intuitive interface for cursor selection and navigation.

- Rob Bushway

People are definitely letting their voices be heard with regards to Microsoft and Tablet PC marketing, this time coming from Steve Hanson, CEO of InPlay Technologies, makers of tablet pc capacitive touch technologies:

I too am frustrated. The potential short term advancements in pen technology could and should revolutionize writing and use of the pen to replace the mouse and key board. I can tell you first hand that the cost of tablet pen implementation is less that $30 today.
Remember when you could not buy a cell phone with a camera? Now it is difficlut to buy one without a camera. The pen in a tablet solution should move down the same path. If every PC incorporated the technology at a $30 (or less) price tag and no predatory mark up by the OEM, we would see the momentum increase for Tablet. That being said, Microsoft needs to backup their beliefs with a firm commitment to the technology providers such that the cost, performance and ease of implementation progress rapidly. Microsoft is a black hole when it comes to stepping up to shape the industry.

- Rob Bushway

InPlay Technologies has released their 1st quarter 2008 financial results. They posted a net loss for the quarter of $1.6 million. InPlay is seeing good growth from their DuraSwitch business, while their FinePoint business has continued to struggle. $9000 in revenue on the FinePoint side doesn't look good at all.

In addition, InPlay received a letter from Nasdaq that the bid price for their common stock has closed below $1.00 for the last 30 consecutive days and is not in compliance with the minimum bid price requirement. According to InPlay, this notice has no immediate effect on their listing or trading.

 

PHOENIX, Ariz. (May 14, 2008) – InPlay Technologies (Nasdaq: NPLA) today announced financial results for the three months ended March 31, 2008.

Revenue for the first quarter 2008 was $388,000, down from $9.0 million in the comparable period during 2007. 2007 revenue included $7.6 million from the sale of the Company’s allowed claim against Delphi Automotive Systems, LLC for licensing fees, InPlay does not expect any future revenue related to Delphi. For the three month period in 2008, revenue included $9,000 from the FinePoint segment and $379,000 from the Duraswitch segment.

InPlay reported a net loss for the quarter of $1.6 million, or $0.14 per share, compared to net income of $6.2 million or $0.54 per share for 2007.

“As anticipated, revenue from our FinePoint segment was significantly lower during the first quarter. At the same time, we made substantial investments in customer support and technology development, in particular our integrated capacitive touch and digital pen platform. We believe that this investment is an important step to be able to deliver the products for our key markets. In the short term, however, our net loss and cash use increased,” said InPlay chairman and CEO, Steve Hanson.

“Our Duraswitch business showed progress during the quarter, with revenue from non-exclusive licensees up 42 percent from the comparable quarter in 2007. We continue to explore alternatives to accelerate market penetration for our switch business,” Hanson added.

“Our overriding goals for 2008 are to win new project designs, manage our cash resources and demonstrate a path to profitability,” Hanson said. “We have put resources in place that we believe will enable us to grow our business more effectively. While we continue to make progress with prospective customers and generate new interest, project lead times can be fairly lengthy. Given the current state of the economy, we do not expect any of our customers to accelerate these timelines. We do remain confident in our ability to earn design wins with prospective customers in 2008.”

- Rob Bushway

It looks like things are finally looking up for InPlay Technologies, as they have signed a development agreement with Blue Cube LCD.

InPlay Technologies (NASDAQ: NPLA), a developer of innovative human interface devices for electronic products, has entered into a development agreement with Blue Cube LCD, a leading display integrator. Under the agreement, Blue Cube is utilizing InPlay’s integrated digital pen and capacitive touch input solution to design computing platforms for OEM customers.

“We are pleased to enter this new relationship with Blue Cube, a company known for its innovative custom solutions. Blue Cube serves a roster of well-known OEMs, making this a strong validation of our technology,” said Ramesh Ramchandani, president and COO, InPlay.

InPlay’s design integrates its patented, active digital pen and multi-finger capacitive touch input, allowing the user to choose the most natural and effective input means. The active digital pen optimizes handwriting recognition and allows for added digital features. The capacitive touch screen offers a quick, proximity sensing, intuitive interface for cursor selection and navigation.

“We always keep an eye toward the latest technology,” said Jason Meyer, Blue Cube CEO. “InPlay provides a compelling package with its digital architecture, progressive roadmap for touch integration and feature enhancement capability. This unique technology allows us design flexibility and gives our customer a leading-edge interface solution.”

InPlay’s patented digital computing system allows the user to communicate directly with the computer or other electronic device via an active RF signal. The digitizer behind the LCD screen employs bi-directional electromagnetic technology to communicate with the pen as it moves across the surface, reporting the tip status, sensitivity, pen position, and other details. The active digital pen optimizes handwriting recognition and allows for added digital features not easily achieved with analog products. InPlay offers OEMs the choice of battery-powered or battery-free, cordless or corded pen products, all designed to meet a wide range of markets from smartphones to tablet PCs.

About Blue Cube LCD

Founded in 2003, Blue Cube LCD is a premiere display integrator for customers in a wide range of industries including avionics, marine, industrial, medical and automotive. Blue Cube is dedicated to excellence in display products and has introduced a number of technological advancements in the field. Its headquarters and manufacturing facility are located in Charles City, Iowa. For more information, visit www.bluecubelcd.com

 

- Rob Bushway

It looks like 2008 is going to be a tough year for InPlay Technologies. In their 2007 financial statement, released March 24 2008, auditors expressed "substantial doubt" about InPlay's ability to continue as a "going concern."

“As expected, our revenue in the fourth quarter was down as we completed production for our largest FinePoint customer. We have made significant progress in our efforts to win new projects utilizing both our FinePoint and Duraswitch technologies. Until we are able to close new product sales and begin production, we are mindful of our cash use,” said Stephen Hanson, InPlay chairman and CEO.

As a result of InPlay's financial condition, the company's auditors have raised substantial doubt about our ability to continue as a going concern.  The consolidated financial statements do not include any adjustments related to the recoverability of recorded asset amounts that might be necessary as a result of this uncertainty.

“2007 was a transitional year for InPlay. We have deep roots in technology design and confidence in our products’ advantages. Our efforts over the last year have focused on creating the infrastructure that we believe will be necessary to support our customers and successfully execute our business strategy,” Hanson added. “We begin 2008 an almost entirely new company. We have a new leadership team, stronger internal skills and have partnered with select industry leaders for manufacturing, engineering design and marketing
support. With these critical pieces in place, we are focused on execution.”

I spoke with Heather Beshears, InPlay's Vice President of Corporate Communications, about their just released financial statement. She confirmed to me that they are definitely in a challenging position right now, and do need to land some contracts to go forward.  They do not currently have any signed purchase orders for their capacitive touch technology, which raised the concern for the auditors. Their priority right now is in shoring up the balance sheet, and winning some key accounts.

InPlay definitely envisions a place for their technology in the marketplace. Let's see if the OEMs agree.

GBM will continue to follow InPlay's status closely.

 

- Sierra Modro

The entire GottaBeMobile.com team got the opportunity to sit down with InPlay Technologies at CES to catch up on the new technologies. Let's get this out of the way first. Yes, InPlay Technologies made the troubled FinePoint digitizer. However, a lot has changed since that time - management, engineering, and the manufacturer they use to produce their products. They claim to have addressed the quality control issues that plagued the FinePoint digitizers on the early Gateway models. I hope they have, because the new InPlay Technologies MagicPoint line of digitizers is pretty impressive technically, and I want them to get a chance.

Digital versus Analog Input

- Matt Faulkner

This would be the answer to MANY people's dreams for the UMPC - I know Warner would be a big fan.  InPlay Technologies will be showing their 7 inch active digitizer next week at CES 2008.  If there was a UMPC with this type of screen, it would be a huge hit right from the start.  Keep an eye out next week as I am sure we'll be finding this for sure!!

From InPlay Press release:

Enhanced user experience with active RF, digital pen technology.
Introduced in 2006, the ultra-mobile PC (UMPC) platform ushered in a new generation of mobile devices. Early specifications only included a passive stylus. InPlay has developed a solution to bring the benefits of active digitizer technology to the UMPC market.

System overview:
  · 7" digitizer: InPlay's single-board solution fits easily behind the LCD screen
  · Active RF pen with InPlay's digital technology
  · Customizable from low-cost corded pen with basic handwriting input capability to feature-rich cordless pen

InPlay's active RF pen adds greater accuracy and enhanced functionality such as hover, tilt and pressure sensitivity, creating a more user-friendly interaction versus a passive stylus. Additionally, there is less wear and tear on the writing surface than experienced with traditional touch screens.
The UMPC platform takes the functionality of a full-size laptop PC into a light, portable device about the size of a paperback book. Most UMPC devices currently on the market offer a touch screen interface with a passive stylus. By adding InPlay's active digitizer and pen, OEMs can offer an enhanced user experience in their next-generation products.

Thanks to JKK for the heads up!!

- Sierra Modro

I guess N-Trig doesn't get to be alone in the spotlight anymore. InPlay Technologies, makes of the FinePoint digitizers, have just announced an integrated active pen and multi-finger capacitive touch input system. That sounds like a very direct competitor to the N-Trig systems shipping in the Dell Latitude XT. Unlike the N-Trig, this still appears to be a two part solution - a capacitive touch solution combined with the Finepoint - but the press release is less than clear on that point. Either way, though, I don't think users will care to much as long as the solution works well and gives them the experience they want. One thing that InPlay appears to be adding to the mix is that their FinePoint pens support tilt, something that isn't currently supported on any Tablet PCs that I know of.

I'm excited to see a new entrant into what is obviously an emerging market. Given the price premium that Dell is attempting to charge on the Latitude XT, I have to think that the N-Trig solution is not cheap. Maybe with some competition the prices will get driven down a bit faster and we can see some more affordable capacitive touch systems.