ASX listed Xped (ASX: XPE) says it is pulling out the IoT market and will concentrate on the healthcare market.
Xped developed a technology Auto Discovery Remote Control (ADRC) designed to enable any devices incorporating it to be monitored and controlled from a smartphone app, via Xped’s ADRC gateway software, once the phone had been paired with the device using near field communication.
It has incorporated this technology into a range of devices and has forged agreements with Taiwanese chipmaker, Telink to have the technology incorporated into chipsets and with Intel to have it incorporated into the Intel IoT Gateway.
Chairman Peter Hunt told the company’s AGM this week: “Xped has been able to develop its ADRC IoT technology to a commercially ready state, however it has not been able to sell its products and develop a profitable revenue stream for its IoT division.”
He said Xped had suffered technological delays and marketing hurdles, both in Australia and overseas and notably in Malaysia where there had been expectations of sizeable development with that country’s telecommunications provider.
In February Xped told the ASX that negotiations with Telekom Malaysia over a master services agreement had not progressed.
“Due to a changed business processes being instigated by the new CEO, the smart home project has recently undergone a request for information (RFI) and is about to undergo a request for proposal (RFP). Xped participated in the RFI and said it would be invited to respond to the RFP due to be sent out late February.”
“In the USA the company was able to develop exciting security oriented products but, sadly, its partners in the US were unable to find markets in time to continue funding product development and that avenue also failed,” Hunt said.
“There are insufficient funds to continue investment into Xped’s ADRC IoT technology and the company has had to terminate further R&D and sales effort in the IoT division.
“While the technology itself was successfully developed, larger players in the market have been able to overtake the lead that Xped had a few years ago and the market is now competitive to such a degree that Xped cannot compete.”
Focus now on healthcare
He said Xped would not concentrate on its healthcare business, which he said it had been successful in building up and which it expects to become a profitable stand-alone business.
Xped got into healthcare in mid 2016 with the acquisition of JCT Healthcare Pty Ltd and Jackson Care Technologies Pty Ltd (JCT) saying it aimed to become “a major force in the lucrative healthcare technology and communications market.”
Xped says: “JCT Healthcare develops and distributes its own range of nurse call hardware and software solutions for use across multiple healthcare sectors including hospitals, aged care, disability care and supported independent living.”
In an October 30 update issued to the market Xped hinted at problem with its ADRC business saying “Due to the need to conserve funds, the company has downsized its operations in its Internet of Things business unit.
That comment, and figures in the company’s annual report, prompted the ASX to question the company’s financial health.
