Fingerprint Cards AB: Year-End Report January-December 2019
Highlights of the quarter
- Cash flow from operating activities increased to SEK 82.4 M from SEK 59.5 M in the preceding quarter
- Revenues increased by 8% compared to the previous quarter
- FPC1540, a new side-mounted capacitive sensor, was launched
- Fingerprints’ technology was used in the world’s first commercial launch of biometric credit cards
Fourth quarter of 2019
- Revenues amounted to SEK 381.4 M (424.3)
- The gross margin was 23 percent (21)
- EBITDA was SEK 13.3 M (pos: 8.8)
- The operating result was negative SEK 15.3 M (neg: 25.5)
- Earnings per share before dilution were negative SEK 0.06 (neg: 0.06)
- Cash flow from operating activities amounted to SEK 82.4 M (neg: 26.1)
January – December 2019
- Revenues amounted to SEK 1,458.6 M (1,535.1).
- The gross margin was 23 percent (0)
- EBITDA totaled SEK 128.7 M (neg: 505.2)
- The operating result was negative SEK 14.4 M (neg: 771.6)
- Earnings per share before dilution were negative SEK 0.04 (neg: 2.01)
- Cash flow from operating activities amounted to SEK 160.4 M (274.6)
- The Board proposes to the Annual General Meeting that no dividend be paid for the 2019 fiscal year
The positive trend in Business Line Mobile continued in the fourth quarter and we increased sales by 8 percent compared with the preceding quarter. During the year, we broadened our customer base, and we also see that the capacitive technology is being embraced to an increasing extent in new areas of application.
The gross margin was 23 percent, which is in line with what we delivered in the first three quarters of 2019. However, we are not satisfied with the current margin level and our efforts to ensure a competitive production cost continue as strong as ever. Another key priority in this context is broadening our business, both in terms of new products and further areas of application. Fingerprints remains the leading provider in the world for capacitive sensors for smartphones and we continued to strengthen our position in the fourth quarter by expanding our product portfolio. In November, we launched FPC1540, a new thin sensor designed for side-mounting. This sensor functions extremely well in the most recent smartphone models, e.g. in smartphones that are borderless or foldable. Already in December, Xiaomi launched two smartphone models in which FPC1540 is integrated inside the power button on the side of the device. We also launched Touchless 2.0 during the quarter. By combining iris and facial recognition, this solution offers end users a high security level without compromising user-friendliness. Our Touchless 2.0 platform offers a more secure and more cost-effective alternative to advanced facial recognition, not only for smartphones but for a number of applications in various industries.
Expanding the business into new areas is a very important priority for Fingerprints. Biometrics is now genuinely on the way to making its entry into another global mass market: card payments. Fingerprints’ products in this area are world-leading in terms of security, user-friendliness and performance, and it is very gratifying that our T-Shape sensor and biometric software platform for payments are being used in the world’s first commercial launch of biometric credit cards. This launch was conducted by Cornèrcard in Switzerland in November 2019, with our partner Thales as the provider of the card. At the beginning of 2020, Thales announced that the company’s card, in which Fingerprints’ technology is integrated, has been certified by Mastercard. This is a significant step that now enables card issuers throughout the world to offer their customers biometric payment cards. The long-term market potential is extensive. Approximately four billion smart payment cards are currently produced each year. This number could increase to as many as six to eight billion within a few years, as all cards in circulation are converted to smart cards. Fingerprints has a fantastic starting point in this market, with well-established cooperation with the leading players all along the value chain for biometric smart cards: card manufacturers and their suppliers, manufacturers of secure elements, payment systems and card issuers.
Of course, we follow the news concerning the Corona virus outbreak closely and have a high level of preparedness. We expect a dampening effect on the operations of the company, but the extent is still unclear.
Christian Fredrikson, President and CEO
Today at 09:00 CET Fingerprints’ CEO Christian Fredrikson will present the report together with CFO Per Sundqvist in a combined webcast and telephone conference. The presentation will be held in English.
The report will be available at fingerprints.com
The webcast and the presentation material can be accessed through https://engage.vevent.com/rt/fingerprints/index.jsp?seid=158
For analysts and media: The telephone conference dial-in is +44 (0) 2071 928000 (international participants) or 08-506 921 80 (Swedish participants). Please state conference ID 9376366.
|For information, please contact: |
Christian Fredrikson, CEO
Per Sundqvist, CFO
Stefan Pettersson, Head of Investor Relations:
+46(0)10-172 00 10
+46(0)10-172 00 20
This is the type of information that Fingerprint Cards AB is obligated to disclose pursuant to the EU’s Market Abuse Regulation and the Swedish Financial Instruments Trading Act. The information was submitted for publication, through the agency of the contact person set out above, on February 13, 2020 at 07:00 a.m. CET.
|About Fingerprints |
Fingerprint Cards AB (Fingerprints) – the world’s leading biometrics company, with its roots in Sweden.
We believe in a secure and seamless universe, where you are the key to everything. Our solutions are found in hundreds of millions of devices and applications, and are used billions of times every day, providing safe and convenient identification and authentication with a human touch. For more information visit our website, read our blog, and follow us on Twitter. Fingerprints is listed on Nasdaq Stockholm (FING B).