FPC Announces Big Business Changes Along With Q3 Results

Fingerprint Cards AB has unveiled its financial report for the third quarter of 2023, accompanied by notable corporate adjustments aimed at navigating market challenges. The biometrics company reported a 29 percent increase in revenues year-over-year, totaling SEK 184.8 million. Additionally, a 35 percent surge in gross profit was recorded.

However, the firm observed a negative EBITDA of SEK -40.4 million, a slight dip compared to SEK -38.1 million in the same quarter of the previous year. Furthermore, the overall loss widened from SEK -51 million a year ago to SEK -73.8 million in the recent quarter.

The newly appointed CEO, Adam Philpott, who joined the firm near the end of summer, elucidated on the company’s new strategic direction in response to the challenging market conditions. A restructuring program is set to be implemented, which is projected to save the company approximately SEK 204 million annually. This strategic move aims to streamline operations and optimize costs to improve the company’s financial standing.

“First of all, current market conditions in our largest operating segment mean that our gross margin is at a level that is economically unsustainable given our existing cost base,” Philpott explained. “As already mentioned, we expect the situation in Mobile to improve once inventory levels normalize. However, we view these cost reduction measures as necessary in order to safeguard the financial health and future of the company. Our top priority is to arrest losses, while continuing to diversify our revenue streams to new, higher-margin areas, including and beyond PC, Access and Payments.”

Moreover, a significant corporate alteration was announced – the integration of all diverse technologies of Fingerprint Cards under a unified platform named the “Fingerprints Biometrics Platform.” This initiative is expected to enhance the cohesiveness and extensibility of the company’s technological offerings, thereby potentially amplifying its competitive edge in the rapidly evolving biometrics industry.

In his remarks, CEO Adam Philpott emphasized the need for restructuring measures to navigate through the challenging market conditions. The envisioned cost optimization and the unification of technologies under a single platform are pivotal steps towards achieving operational efficiency and fostering innovation, which are crucial for sustaining growth in a competitive market landscape.

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October 20, 2023 – by the FindBiometrics Editorial Team