NEXT Biometrics has revealed plans to dramatically reduce operational expenses and “reset” the company, and also revealed a key preliminary figure from its first quarter of 2020.
The fingerprint biometrics specialist says that its revenues for the quarter will come in at about NOK 20 million; in a statement, it described this figure as “117% higher than the low point reached in Q4 2019.” But the company also noted that it embarked on a major new cost reduction program in Q1, which had the aim of reducing its annual operating expenses by at least about $1.9 million per year.
Now, NEXT Biometrics’ Board of Directors has announced a new plan of action aimed at getting the company to an operational expenses run rate of about NOK 5 million per month in the fourth quarter of 2020, compared to an opex run rate of NOK 16 million per month in Q4 of 2019. To that end, the company will take measures including outsourcing some operational activities to other countries, simplifying its legal structure and lowering administration costs, further staff cuts, and simplifying its product portfolio.
“Management has acted resolutely with a restructuring plan that will provide a leaner and more customer focused operation,” said NEXT Biometrics CEO Peter Heuman. “The plan will reset the company, conserve cash, and enable Next to become a commercially focused technology company.”
As for the impact of the COVID-19 pandemic, NEXT Biometrics says its management is assessing the situation on an ongoing basis. The pandemic has had “an impact on the operation,” the company said, but its leadership have “taken the necessary steps to ensure that our customers are serviced and that inquiries are being attended to in a professional manner.”
April 28, 2020 – by Alex Perala