IDEX Biometrics has announced that the company will be restructuring in an effort to reduce its operating costs. The restructuring will take place in the fourth quarter of 2019, and is expected to lower the company’s break-even shipments point by 50 percent.
According to IDEX CEO Stan Swearingen, the changes reflect the unpredictable nature of the ecosystem surrounding biometric payment cards, and will not have any significant effect on the company’s day-to-day operations.
“The biometric payment card market is still a developing market and, as is common with most emerging growth markets, it is difficult to predict revenue streams with precision,” explained Swearingen. “These reductions will provide extended cash runway while not impacting our strategic initiatives. We will maintain the capacity to support our customers and continue key roadmap development activities.”
With the restructuring, IDEX will lower its annual operating expenses by as much as 30 percent, a goal that will be achieved by reducing staff and other cash compensation costs. The company will also cut back on business spending that does not lead to short-term revenue gains.
To that end, IDEX will try to increase cash flow through strategic partnerships, IP monetization, R&D tax credits, and other methods. The company recently formed licensing agreements with Chutian Dragon and IDEMIA, and is currently preparing to fulfill a multi-million dollar fingerprint sensor shipment for an undisclosed customer.
IDEX will share its Q3 results on November 13.
November 7, 2019 – by Eric Weiss