Fingerprint Cards AB: Interim Report January – March 2020
Highlights of the quarter
- Our market share in capacitive sensors for mobile phones increased year-on-year. Several smartphone models were launched with the latest generation of sensors from Fingerprints.
- Revenues in the first quarter of 2020 were affected by capacity limitations among subcontractors and restrictions on goods transportation as a result of the coronavirus outbreak.
- Our offering in Payments & Access was strengthened during the quarter through, among other activities, the launch of a further development of our biometric software platform.
First quarter of 2020
- Revenues amounted to SEK 310.0 M (342.9)
- The gross margin was 24 percent (23)
- EBITDA totaled SEK 11.6 M (35.8)
- The operating result was negative SEK 17.7 M (neg: 1.9)
- Earnings per share before dilution were negative SEK 0.01 (neg: 0.01)
- Cash flow from operating activities was a negative SEK 37.8 M (neg: 161.1)
The coronavirus outbreak has had far-reaching consequences, not least for all of those affected by the disease. It is of the utmost importance for Fingerprints to protect the health and wellbeing of its employees, customers and partners, and to thereby contribute to reduced spread of infection. Accordingly, we have adapted our work procedures and operations have proceeded well. It is gratifying that the equity/assets ratio for the Group improved to 83 percent.
At the same time, there is no doubt that the world is currently experiencing enormous social, economic and political strain. Of course, Fingerprints is also affected, but we are working hard to mitigate the effects to the greatest possible extent. I am proud of our staff members, who are doing their utmost to ensure that we continue to create value for our customers and partners in this difficult situation.
Revenues in the first quarter of 2020 were negatively affected by supply chain challenges in Asia, mainly in the form of capacity constraints among subcontractors and restrictions to goods transportation as a result of the coronavirus outbreak. We expect the effects of inadequate access to production capacity among the major semiconductor manufacturers to persist moving forward. However, the situation has improved somewhat as the restrictions due to the coronavirus outbreak have been successively lifted in Asia.
At the same time, we assess that the economic slowdown in the world, with rising unemployment and falling demand for consumer products, will negatively impact our revenues. However, the situation is difficult to assess, which is reflected in the broad range of forecasts that have been published. External industry analysts currently estimate that the global smartphone market could shrink by as much as 10–20 percent in 2020.
While we are working to manage the short-term challenges facing the operations, our long-term strategic priorities stand firm. Our R&D organization has been able to maintain full focus on the development projects and we have continued to strengthen our position in the market, both in Mobile and in Payments & Access. Our market share in capacitive sensors for mobile phones has increased since the corresponding quarter last year. Several smartphones were introduced in the market during the quarter featuring our recently launched sensors, including the Realme X50 with FPC1540 and the Moto G Power with FPC1520. We are also strengthening our Payments & Access offering through, for example, the launch of a further development of our biometric software platform for payments, which can now also be used in a number of different Access applications, i.e. biometric access control. We have also launched two touch fingerprint sensors specifically adapted for the Access segment: FPC1020 and FPC1024. We recently entered a global license agreement with FEITIAN for Fingerprints’ biometric software platform, combined with a volume agreement for sensors. The agreement applies to biometric cards and various types of access devices. The demand for practical, secure and reliable biometric solutions is increasing and we are very pleased with this partnership with FEITIAN, which indicates that our superior biometric sensors and software are continuing to gain ground in payments and access control. Despite the challenges in the world, which affect everyone, we operate in a uniquely interesting industry. There are fantastic opportunities to develop the use of biometrics in the world, and Fingerprints has a very strong starting point.
Christian Fredrikson, President and CEO
Today at 09:00 CEST 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=162
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 1757019.
|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. The information was submitted for publication, through the agency of the contact person set out above, on May 4, 2020 at 07:00 a.m. CEST.
|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).