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Plastic Logic Is Raising $700 Million To Open A New Factory In Russia

Joseph Tartakoff — Tue, 18 Jan 2011 08:00:36 +0000

Plastic Logic is raising $700 million to open a new factory in Russia that will produce “next-generation plastic displays.” The company had said in November that it was taking a “significant investment” from the Russian government-owned Russian Corporation of Nanotechnologies (Rusnano) but had not specified how large that investment would be.

Rusnano will initially invest $150 million in Plastic Logic, while existing backer Oak Investment Partners will put in another $50 million. Rusnano is also offering “partial guarantees” for debt financing of $100 million. Plastic Logic says $400 million of additional debt and equity will be raised “over the next few years.” The company had already raised more than $200 million, including $100 million in a round three-and-a-half years ago, which it used in part to build its existing factory in Dresden, Germany.

Plastic Logic was behind the highly-hyped Que tablet, which was supposed to launch in January 2009 but was repeatedly delayed and ultimately cancelled. It now says it is using its flexible display technology to build a “next-generation electronic reader for business.” It isn’t saying when that device should come to market, but it says the new factory will be able to produce “hundreds of thousands of units” of displays monthly beginning in “2013/2014.”

Plastic Logic Gives In To Reality; Cancels Highly Hyped Que

Staci D. Kramer — Wed, 11 Aug 2010 02:55:16 +0000

Filling a CES booth with avid potential buyers and oohing-ahing spectators turned out to be a lot easier for Plastic Logic than actually shipping the highly anticipated and much-hyped Que e-reader. Instead of pretending it can deliver a high-end black-and-white e-reader that people will buy in an iPad world, Plastic Logic is officially benching the Que in favor of a second-gen ProReader device. In a statement posted on the company’s web site Tuesday, CEO Richard Archuleta admitted defeat: “We recognize the market has dramatically changed, and with the product delays we have experienced, it no longer makes sense for us to move forward with our first generation electronic reading product.”

The elegant Que captured some attention in mid-2009 when Plastic Logic showed off the device at All Things Digital D7. Ultra-thin and considerably more elegant than a Kindle DX, the prototype delivered perfectly rendered PDFs — unlike Amazon’s devices at the time — and seemed on pitch to appeal to business people eager to shed pounds of docs.

But that demo was months before Plastic Logic execs realistically thought the device could ship. It got more boosts with a star turn at CES (the video embedded below should show you why it was so attractive), when it signed a deal with AT&T (NYSE: T) to provide 3G and when Barnes & Noble (NYSE: BKS) agreed to sell the e-reader — and again couldn’t capitalize by actually shipping the device. Publishers signed on as partners — the Wall Street Journal, USA Today, the FT, The Atlantic, Forbes, and more. For months, the company insisted the Que would ship.

During that time, Amazon (NSDQ: AMZN) added PDF functionality and fundamentally revamped the Kindle DX — adding true PDF access, slimming down the size and the price, upping the readability — and, most damning, Apple (NSDQ: AAPL) launched the slender, large-screen color iPad at an affordable price. The iPad captured multi-taskers imagination and quickly took on a business role. By the time D8 rolled around this year, one-time potential Que users were bragging about traveling with only an iPad. For single-taskers, the Kindle DX changes made the black-and-white device in a graphite case more attractive and more of a Que competitor than the clunky first-gen version. The Que started at $649 for WiFi-only, coming to $749 for an 8GB model with WiFi and 3G. The iPad runs $499 for WiFi only with 16 GB, and $829 for the 3G top of the line. The Kindle DX dropped 22 percent last month to $379 for 3G.

The new marketplace, combined with the problems it was on having on the production end, finally led Archuleta’s acknowledgment today what was by now as widely expected as the device once was: The Que, aimed at enterprise more than consumer all along, was dead before arrival.

What’s next for Plastic Logic? From Archuleta’s statement: “We plan to take the necessary time needed to re-enter the market as we refocus, redesign and retool for our next generation ProReader product. We continue to perfect our core plastic electronic technology and manufacturing processes that are central to our product’s unique value proposition.” The idea is that plastics can replace silicon — and that the technology used for Que and evolved since then is still valuable enough to merit continuing as a company.

Updated: Plastic Logic Says It’s In “Negotiations” — Possibly To Sell Itself?

Joseph Tartakoff — Tue, 06 Apr 2010 20:46:18 +0000

Updated: Plastic Logic, the maker of the very delayed Que proReader, apparently may be on the block. Backer Hermann Hauser of VC firm Amadeus Capital Partners tells the FT — which discusses at length the possibility of a sale — “we’re in very interesting negotiations with … well, that would be a separate interview” and says some resolution may come this fall. ~~We’ve asked Plastic Logic to clarify Hauser’s cryptic remarks.~~ Plastic Logic just got back to us and provided this statement from Hauser: “My comments were taken out of context. I was talking about partnerships we are working on, the value of Plastic Logic technology and its potential for the future — not a sale of the company.

Plastic Logic Can’t Deliver On Que; Delays E-Reader Shipments By Months

Staci D. Kramer — Fri, 12 Mar 2010 21:04:35 +0000

Another e-reader company is finding it more difficult than expected to deliver devices. Pre-order customers for the Plastic Logic Que proReader are getting an e-mail from CEO Richard Archuleta about an extended delay in delivering the device, highly anticipated because of its sleek form factor and large screen. During CES, where Que was one of the buzziest booths, the company said it would ship the expensive devices by mid-April. The new shipping date is a vague “this summer.” The offered reason: “to fine-tune the features and enhance the overall product experience.” Plastic Logic will eat the shipping fees to make up for the delay.

If the prospect was shipping a product with a software experience that disappointed, as was the case at first with the rushed Barnes & Noble (NYSE: BKS) Nook, holding it back until it’s right could keep Plastic Logic from a dud on delivery. But the delay puts it out months after the Apple (NSDQ: AAPL) iPad, which was still unannounced when Que went public with its plans — and went on pre-order sale this morning. The iPad is priced lower than expected at the bottom end, $499 for WiFi only with 16 GB, but the 3G version at the top of the line runs $829. The Que starts much higher for WiFi only at $649 but so far costs out just below the iPad at the highest end; an 8 GB model with WiFi and 3G is $749. The price comparison is doesn’t deal with the real differences: one is a mutli-task device that promises to include a smooth e-reading and e-retailing experience for a wide audience; the other is a dedicated device aimed at a very specific business market.

—————————————————————–
E-mail to customers from Richard Archuleta
Subject: QUE proReader Shipping Update

Thank you for being one of the first customers to order a QUE proReader from Plastic Logic. We appreciate your business.

Today, I wanted to personally inform you that we are postponing the first QUE proReader shipments until this Summer in order to fine-tune the features and enhance the overall product experience. Within the next month we will send you an email with more details about your order. If you also ordered accessories for your QUE proReader, we plan to ship them at the same time as your QUE proReader. I can imagine that you want to get your QUE proReader as soon as possible. We are sorry for the delay. For your inconvenience, the shipping charges will be on us. Please note that we will not charge your credit card until your order is ready to ship.

If you have any questions, please do not hesitate to email us at QUEhelp@PlasticLogic.com. Once again, thank you for being one of our first QUE proReader customers.

Best regards,

Richard Archuleta
CEO
Plastic Logic

And this is a video demo Archuketa did for us at CES:

@ CES: Plastic Logic’s Pricey Que E-Reader Set To Ship Mid-April; $649-799

Staci D. Kramer — Thu, 07 Jan 2010 22:59:09 +0000

We’ve known all along that Plastic Logic’s Que, with its 8.5″ x 11″ form factor aimed at business users, would go for a heftier price than most of the wieless e-readers. Now we know how much more: the WiFi-only base model with 4GB runs $649, nearly $200 more than the Amazon (NSDQ: AMZN) Kindle DX; the 8 GB model with WiFi and 3G is $749. Plastic Logic is taking preorders now for shipping in mid-April; no date yet for retail sales through Barnes & Noble (NYSE: BKS), just “later in 2010.” Holding off on B&N sales makes sense for a couple of reasons — the retailer is still on a steep learning curve with its own Nook and Plastic Logic stands a better chance of avoiding similar production and delivery issues if it keeps the sales channel narrow for now.

Que also announced a batch of new content partners, including Dow Jones (NYSE: NWS) (Wall Street Journal, Barron’s, All Things Digital), Forbes, Fast Company; The Sporting News, the Sacramento Bee, Miami Herald, and San Jose Mercury News. B&N is powering the bookstore, as previously announced. Publications will sold for single copy or subscription. PlasticLogic will use something it calls QUE truVue, based on the Adobe (NSDQ: ADBE) Reader Mobile SDK, to produce a look and feel for newspapers and magazines similar to the print versions. I’ll let you know how that works after I spend some time with it. For now, more details in the release.

How Wireless E-Readers Stack Up

Staci D. Kramer — Tue, 17 Nov 2009 04:50:40 +0000

When Amazon (NSDQ: AMZN) introduced the second-gen Kindle earlier this year, it had no competition in the wireless e-reader category. By the holidays, it will be competing head on for consumers with the Daily Edition from Sony (NYSE: SNE), the unfortunately named DR8000SG from IREX Technologies, and a surprise entrant, the Nook from Barnes & Noble (NYSE: BKS). Early next year, meanwhile, the larger-format Kindle DX gets long-anticipated competition from Plastic Logic. Here is a look at each of the six e-readers, including my take on the devices. We’ve also set up two charts, one for the larger-format devices and one for the paperback-size e-readers, where you can see all the specs of competing devices in one place, to make it easier to compare and contrast.

In the paperback-size category, the Nook is supposed to start shipping Nov. 30 but the pre-order deliveries are already backed up well into December, as demand outstrips immediate availability. Of course, we don’t know how many units actually are being sold, but so far the hype is working. That makes the job harder for Sony, which at least has the branding and retail heft.

But IREX doesn’t even have that. What it does have is a retail relationship with Best Buy and, at some point, marketing visibility from wireless partner Verizon (NYSE: VZ). On my last check at Best Buy, I could see the tag and the space set aside, along with a price tag of $449 — $50 higher than the company says it’s supposed to be. Getting shelf space in a major big box chain: good. Getting a tiny corner in the Techno Wonder display with Sharper Image gadgets while Sony has a full kiosk a few feet away: not so good.

The Kindle DX is it for those who want a textbook-size wireless e-reader this year. The Que is the mirage of e-books for now. I actually tried a version of it months ago but have been told not to think of it as the final. It will be sleek, though, and people who have the luxury of time (as well as money given how much higher these run) may want to wait at least until early Janurary, when more details are due at CES.

These aren’t the only e-readers around or the only ones in the pipeline (Spring Design is suing Barnes & Noble claiming the Nook copies its Alex dual-screen device) but this is the category moving the needle on e-books and this should be the crack-through season. Not the time when e-readers become ubiquitous — that will have to wait for prices to come down closer to $150 — but when the e-reader moves from “what is it” to “I might want it.” Forrester recently pushed its 2009 sales projection up 50 percent to 3 million, with 900,000 units expected to sell during the holidays. What will shoppers see? Click here for the slide show and the charts comparing the larger-format devices and the paperback-size e-readers.

Barnes & Noble Will Sell Plastic Logic’s Que In Stores, Online; More On Nook Sales

Staci D. Kramer — Tue, 27 Oct 2009 19:28:44 +0000

Barnes & Noble will sell Plastic Logic’s Que in stores and online when the “proReader” launches in early 2010. The Que, a notebook-paper sized device aimed at business users, is not direct competition for B&N’s own Nook, announced last week; in addition to be considerably larger, it also could cost twice as much as the $259 Nook or more. The announcement marks an expanded relationship for the two: the Que, like the upcoming iRex wireless e-reader, will rely on the Barnes & Noble eBookstore.

B&N is the first of Que’s retail partners to be announced. Plans call for the device to be sold near the Nook “on free-standing displays with signage offering Barnes & Noble customers choice based on their reading needs.” The release (pdf) repeatedly emphasizes the difference between the two by highlighting Que’s business features. It’s not clear yet whether Que physically will be available to buy at every store or if, as we reported yesterday with the Nook, it will only be available to buy immediately in certain stores and ordered online in others.

– Nook sales strategy: B&N spokesperson Mary Ellen Keating e-mailed some detail this morning to clarify the chain’s retail strategy for Nook: “While it

AT&T To Provide Data Connectivity For Plastic Logic’s E-Reader; More AT&T Network Overload

Rafat Ali — Wed, 22 Jul 2009 09:20:37 +0000

Plastic Logic’s upcoming e-reader — they better come up with a more catchy name– will get wireless connectivity from AT&T (NYSE: T), reports WSJ. Amazon (NSDQ: AMZN) Kindle has connectivity from Sprint (NYSE: S), and other competitor Sony (NYSE: SNE) Reader doesn’t have a wireless connection. In addition to the 3G connection, PL reader users will be able to use AT&T’s Wi-Fi network, which means within all U.S. Starbucks as well. Also, since AT&T is a GSM network, potentially it would work outside U.S., a feature Kindle doesn’t have (though you can sideload Amazon downloads through syncing with the computer). Not clear: how PL reader users would pay for AT&T connectivity, if at all. Kindle users don’t have to; it is built into the upfront price.

As if AT&T needs more data load. Read this and this for perspective.

AT&T says it hasn’t decided if it will sell the reader in its stores; would be a big boost to it if it does. The new PL reader will have to get some heavyweight retail and online distribution to compete against Amazon’s online might. Yesterday the company announced a deal with Barnes & Noble, where the bookseller will power an e-book store for it.

Meanwhile, PL’s VP of biz dev was on Fox Business today, talking up the device. Video embedded after the jump.

And Now… Some Non-Kindle E-Reader News

Tameka Kee — Tue, 10 Feb 2009 04:29:06 +0000

Given all the Kindle 2.0 fanfare, you’d think competitors would have held off on making major announcements today — but not Plastic Logic, the California-based company that says it has raised more than $200 million for the development of its own e-Reader. At 8.5 x 11 inches, it’s larger than both the Kindle and Sony’s Reader, but the company is aiming for publishers that don’t want to be forced into “shrinking” their content to fit on the smaller readers, per the NYT. Plastic Logic revealed a list of content providers for its device, which is slated for commercial release early next year:

– direct distribution from the Financial Times and USA Today

– LibreDigital, whose technology powers digital distribution for various newspapers, including the NYT, the Washington Post and Hearst Newspapers

– Zinio, for magazines from publishers like Hachette Filipacchi, *Playboy* and IDG

– Ingram Digital, for retail and educational books from publishers like McGraw-Hill

Release.