GenuOne exits RFID, for now

The privately held Boston, Massachusetts-based company launched in 1999 as a supply-chain security software maker and got into the RFID market in late 2003 as an RFID software provider. It has raised more than $20m in venture capital to date. Now, the company will again focus on its more profitable supply-chain security software and no longer sell or develop any of its RFID software, CEO Jeffrey Unger said. GenuOne's RFID business had driven about 10% to 15% of its revenues, he said. However, its exit from the RFID market is temporary, Unger said. "We feel the market is still going through a lot of ebbs and flows, and will take time to mature into a growth marketplace for enterprise applications," he said. Unger said, while growth opportunity for inexpensive RFID middleware will continue for the next couple of years, it will take three years to five years before demand for RFID applications, such as GenuOne's, pick up and the company re-enters the RFID market. "Once RFID infrastructure problems are resolved, during the next few years, then RFID applications can be built out," he said. "We have analyzed the market for over a year now, and did not feel we could have true visibility into the tipping point in the marketplace. It's really a matter of time. We're not any less bullish on RFID." A handful of GenuOne's 30 employees will lose their job as a result of the restructuring. Earlier this year, the company announced three new versions of its RFID tracking and tracing software, TraceGuard V3.0, aimed at the healthcare and consumer packaged goods. The company also sold an RFID anti-counterfeiting and tagging software called SourceGuardV3.0, as well as an online brand-protection tool called GenuNET V4.0. In February, GenuOne announced a deal with Unisys, whereby the outsourcing company would use GenuOne's RFID software for tracking and authentication within Unisys' application. The partnership will not continue, Unger said, and no customers will be affected because there were none. Existing GenuOne customers will either be migrated onto other platforms or GenuOne will continue to support them, Unger said.

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