Fingerprint Cards lowers projection for 2013
Fingerprint Cards AB (FPC) is lowering its sales projection for 2013 to SEK 80—110 M, from the earlier forecast of SEK 130—190 M. Our assessment is that sales will total SEK 20—30 M during the third quarter of 2013 and SEK 30—50 M during the fourth quarter of 2013. Sales in the second quarter of 2013 totaled SEK 20.6 M, which is in line with earlier forecasts.
There are two main reasons for the change in the sales forecast. One is the delay of a couple of major projects involving FPC’s swipe-sensor technology, from the latter half of 2013 to the first half of 2014. The other is that several of FPC’s OEM customers have chosen to evaluate the area sensor as an alternative to the swipe sensor, which is delaying the launch of these projects by six to twelve months. FPC’s anticipated sales value per area sensor is expected to provide revenue of six to eight times higher compared with current swipe sensor chip (BTP), which should result in higher income for FPC when mobiles and tablets are launched in the market.
Customer activity continues to be very high. Microsoft’s clear position on area sensors and the anticipated autumn launch of the Apple iPhone 5S, which is expected to include an area sensor, will be two of the strong forces driving FPC’s market in the next 12 to 18 months. In light of the current strong demand for the company’s products and solutions and the company’s strong financial position, the Board of Directors has resolved to accelerate the recruitment of new staff to capitalize on the strong market position in the best possible manner. This will entail cost levels that are substantially higher than before, as of the fourth quarter in 2013.
In combination with the lower revenues, this will mean that FPC will not be achieving profitability for this year. The conditions for achieving healthy profitability in 2014 are excellent. The interim report for the second quarter of 2013 is, which was previously scheduled to be published on August 22, will be published on Thursday, August 8 at 8:00 a.m.
For more information contact: Johan Carlström, CEO Fingerprint Cards AB (publ), +46 (0) 31-60 78 20, investrel@fingerprints.com
About Fingerprint Cards AB (publ)
Fingerprint Cards AB (FPC) markets, develops and produces biometric components and technologies that through the analysis and matching of an individual’s unique fingerprint verify the person’s identity. The technology consists of biometric sensors, processors, algorithms and modules that can be used separately or in combination with each other. The competitive advantages offered by the FPC’s technology include unique image quality, extreme robustness, low power consumption and complete biometric systems. With these advantages and the ability to achieve extremely low manufacturing costs, the technology can be implemented in volume products such as smart cards and mobile phones, where extremely rigorous demands are placed on such characteristics. The company’s technology can also be used in IT and Internet security, access control, etc.
Fingerprint Cards AB (publ) discloses this information pursuant to the Swedish Securities Market Act (2007:528) and the Swedish Financial Instruments Trading Act (1991:980). The information was issued for publication on August 2, 2013, at 08:00 a.m.
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