US contactless payments specialist ViVOtech says that is looking to sell off its reader business but denied press reports that it is set to completely cease operations.
On Friday, citing sources, NFC Times reported that ViVOtech was holding conference calls with employees to inform them it was discontinuing operations. The news site says cash flow problems are to blame, despite the fact the vendor closed a series d funding round just months ago, taking total investment to $96 million.
ViVOtech has denied the claims, issuing a statement on its Web site insisting that its "business fundamentals are strong and orders and contracts are building in both its reader and software business."
However, the statement confirms that "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."
This means that staff numbers are being cut as focus switches to the software business: "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".