Santa Clara-based Vivotech, a leading maker of in-store credit card readers, on Friday announced it was scaling back operations and cutting staff.
The company, which has raised a reported $96 million in venture capital, boasted last year that it had sewn up more than 70 percent of the near-field communication market, which lets retailers and banks offer credit and debit payments by swiping or tapping a card.
Its customers include Home Depot, Whole Foods and McDonald's. Last year, it partnered with Google (GOOG) on the search giant's "Google Wallet" initiative to let people make credit purchases using their smartphones.
But amid rumors that the company was going out of business, it issued a statement Friday saying that although its "business fundamentals are strong," it has struggled to find a buyer for its card-reader business as it looks to focus exclusively on software.
Chief Executive Mick Mullagh did not immediately return a call, nor did several board members.
In an interview last summer, Mullagh told this newspaper that revenues were doubling each year and that the company, which employed 90 people at the time, was planning an initial public offering of stock.
Vivotech's investors include Alloy Ventures, Citigroup, Draper Fisher Jurvetson, Motorola, Nokia and
Contact Peter Delevett at 408-271-3638. Follow him at Twitter.com/mercwiretap.