Two primary reasons lie behind biometric solutions developer Fingerprint Cards AB (FPC) lowering its sales projection for 2013 from SEK 130-190 M to 80-110M, as it announced on Friday. First of all, major projects that involve FPC’s swipe sensor technology have been delayed from late 2013 to the beginning of 2014. The second factor has to do with several of FCP’s OEM customers choosing to evaluate the company’s area sensor as a possible alternative to the aforementioned swipe sensor, in turn pushing back associated product launches by six to twelve months.
Once mobiles and tablets are launched, however, FCP is anticipating greatly increased revenue, six to eight times higher, due to the sensor’s sales value in comparison with the swipe sensor chip.
The anticipated launch of the iPhone 5S in mid-September, which is expected to include an area sensor, as well as Microsoft’s clear position on this specific technology, are going to be the two major factors driving FPC’s market for the coming 12 to 18 months. With an eye to capitalizing on Fingerprint Cards’ strong financial position, FPC’s board of directors has chosen to recruit new staff at an increased rate. The cost involved in this staff expanding move will reach substantially higher levels in Q4 of 2013, which, combined with the lower revenues associated with the previously stated factors, boils down to FPC not achieving profitability for the current year, but facing 2014 with all of the conditions necessary for an excellent chance of healthy profitability.
The FPC interim report for the second quarter of 2013 will be published on Thursday, August 8, as opposed to the previously scheduled date, set for August 22.
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.
Contact: Johan Carlström, CEO Fingerprint Cards AB (publ), +46 (0) 31-60 78 20, investrel@fingerprints.com
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