December 18, 2013 – by Peter B. Counter
Tis the season to associate low prices with the positive feelings that come with holiday gift giving. There is really nothing like being a consumer in a shopping mall this time of year and seeing that sale sign that enables you to get the best things for the people you love. The door swings both ways though, and price reductions are never something vendors look forward to, especially when they are unrelated to seasonal competition.
Precise Biometrics announced today that it has agreed to retroactively lower its prices on a large order of Tactivo smart card readers placed this past March by an unnamed major US mobile operator. The reduction will obviously negatively impact the biometrics company’s Q4 financial results.
According to Precise Biometrics, this retroactive adjustment has lowered the fourth quarter sales projection by approximately SEK 2 million ( about 305,000 USD).
This news is not coming out of the blue. Over the summer Precise Biometrics lowered the price of Tactivo readers after discussions with its partners surrounding ongoing market research. The prices for this and the company’s largest Tactivo customer’s order have been adjusted to reflect this mid year decision.
Despite the lowered prices and the rebates that Precise is having to deal with this holiday season, the company seems optimistic for its offerings heading into the new year.
We continue to see great potential for Tactivo on the US market,” says acting president and CEO Håkan Persson. “We receive positive signals from customers and partners there.”
The biometrics landscape is changing quickly and dynamically now that mobile devices have started to bring a new, broader audience to the strong authentication table. Earlier this summer when rumors were making the rounds about what would eventually become known as Apple’s Touch ID iPhone fingerprint sensor, Precise Biometrics benefitted with a bump in the stock market. Soon after, it entered an agreement with sensor manufacturer Fingerprint Cards AB, who now benefits from Precise’s fingerprint algorithm, and subsequently found its technology on a biometric smartphone in Asia.
Though a retroactive price reduction, which inevitably equated to a partial refund, is never something a vendor wants to celebrate, especially as the year is coming to a close, Precise Biometrics can look past the financial stresses of the holiday season, make some resolutions, and hopefully hit the ground running in 2014 while its anonymous mobile operator enjoys the benefits of getting a great deal on its Tactivo order.
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