“Fredrikson says FPC is “currently conducting a high-priority development project” on a low-cost fingerprint sensor solution, which is expected to reach the market in the second half of this year.”
The same trends seen in Fingerprint Cards’ Q4 report continue in its newly published Q1 update, with competitive pressures bearing down on the biometrics specialist’s mobile operations.
The company reports a 58 percent year-over-year drop in revenues, which came in at SEK 289.7 million (roughly $32.6 million USD). And compared to a profit of SEK 53.9 million (a little over $6 million) in Q1 of 2017, FPC saw a loss of SEK 148.2 million (about -$16.7 million) for Q1 of this year, reflecting a 375 percent drop.
As FPC’s leadership had previously predicted, sales continued to weaken over the quarter, as did a broader market shift toward smaller, cheaper fingerprint sensors. Commenting on the results, FPC CEO Christian Fredrikson said the latter trend “was the single most important factor underlying the decline in sales and the weaker gross margin,” and that FPC’s leadership believe that fingerprint sensor prices will continue to decline.
The company is adapting, however. Fredrikson says FPC is “currently conducting a high-priority development project” on a low-cost fingerprint sensor solution, which is expected to reach the market in the second half of this year. “In respect of capacitive fingerprint sensors for smartphones, the main focus of our R&D activities will henceforth be on ensuring a competitive production cost,” Fredrikson added.
And as FPC has previously emphasized, the company is also intent on exploring new areas such as biometric smart cards, an emerging market in which FPC “is very well positioned.” Fredrikson also stressed that the company has moved ahead with its cost reduction program, which should produce results in Q3. Meanwhile, despite the market challenges, FPC’s leadership “expect some stabilization and sequential growth in Q2,” including anticipated positive cash flow from operating activities.
May 3, 2018 – by Alex Perala