Revenues for the quarter came in at SEK 389.9 million, a decrease of 53 percent year-over-year. FPC also continued to see a net loss, which amounted to SEK 467.9 million, compared to a loss of SEK 148.2 million in Q1 of this year, and a profit of SEK 32.8 million in Q2 of 2017.
On the plus side, the company did see a stabilization of sales, which increased 35 percent sequentially. But an ongoing reduction in average selling price for smartphone fingerprint sensors and a larger industry shift to smaller and cheaper sensors continue to have a powerful effect on Fingerprint Cards’ business. Meanwhile, shifts to new mobile biometrics technologies are also restricting the market for capacitive sensors.
It is adapting, however. Commenting on the results in a statement, FPC CEO Christian Fredrikson highlighted the company’s cost reduction measures, which include layoffs, merging FPC’s smart cards and automotive & embedded business units, and the reduction of its executive team from 10 to six. FPC’s Automotive & Embedded business unit VP, Operations & Quality VP, Strategy & Corporate Development VP, and General Counsel have all departed the company already, while the rest of its cost savings measures are expected to be completed in Q3, ultimately resulting in anticipating savings of at least SEK 350 million annually.
Meanwhile, the company’s efforts to expand into new business areas beyond the mobile biometrics market continue, while in the latter area its development of in-display fingerprint sensor technology has become “a prioritized development area”. FPC said it had developed viable, ultrasonic in-display technology as early as last November, but in his comments Fredrikson indicated that this work is ongoing.
Fredrikson also touched on the emerging biometric cards market, noting that two global card manufacturers had adopted its T-Shape module for such applications. “Although at present this pertains only to small volumes, the orders are a key milestone and are another step closer to the creation of a new mass market for our solutions,” he said.
FPC’s goal is to have non-mobile applications of its technology account for at least 10 percent of its sales for the year.
July 19, 2018 – by Alex Perala