Phunware Inc (NASDAQ:PHUN) has announced it is winding down the operations of its gaming PC manufacturer subsidiary Lyte Technology with immediate effect as it focuses on its enterprise software business.
Austin, Texas-based Phunware said the decision followed an extensive and comprehensive assessment of various strategic alternatives available and may be followed by the disposition of remaining Lyte assets via a sale or otherwise.
It follows the company’s recent announcement of an expanded corporate vision under new CEO Mike Snavely.
“The choice to wind down Lyte operations follows an assessment of that business in the context of Phunware’s future direction,” Snavely said in a statement.
“This transition is both a good financial decision in that it eliminates inventory carrying costs and operational staff expenses, reducing our cash burn by about $2MM annually. It’s also a demonstration that we’re fully invested in our enterprise software business, which has been the cornerstone of the company’s operational success.”
Phunware’s senior leadership team remains keen on elevating the company’s corporate profile by ensuring its resources are primarily utilized toward driving the “ubiquitous adoption of Phunware technologies, both via direct and channel sales and via other strategies to monetize our IP,” Snavely added.
“We thank Caleb Borgstrom and the Lyte Technologies team for their work over the past couple of years,” he said.
Phunware is the pioneer of Multiscreen-as-a-Service (MaaS), an award-winning, fully integrated enterprise cloud platform for mobile that provides companies the products, solutions, data and services necessary to engage, manage and monetize their mobile application portfolios and audiences globally at scale.
Contact the author at stephen.gunnion@proactiveinvestors.com