In This Article:
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Revenue: Increased by 100% from SEK 9.1 million in Q1 2024 to SEK 18.2 million in Q1 2025.
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Gross Margin: Healthy at 56.6%.
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EBITDA: Positive SEK 10.7 million, supported by the Smart I deal.
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Free Cash Flow: Negative SEK 22 million due to discontinued operations.
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Cash Position: SEK 52.6 million post rights issue.
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Headcount Reduction: Down 70% year-on-year.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Fingerprint Cards AB (FRA:FPQ1) reported a 100% increase in core business revenue, reaching 18.2 million SEK in Q1 2025.
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The company achieved strong gross margins, indicating successful entry into more profitable markets.
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The strategic transformation plan is showing positive results, with significant progress in stabilizing the business and moving towards growth.
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The company has successfully reduced headcount by 70% year-on-year, aligning its cost structure with core revenue.
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Fingerprint Cards AB has entered into promising partnerships, such as with Anonymits, to expand into new markets like decentralized biometric authentication.
Negative Points
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Despite improvements, the company's EBITDA remains negative, indicating ongoing financial challenges.
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Free cash flow was negative at 22 million SEK, primarily due to discontinued operations, highlighting cash flow management issues.
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The company is still in the process of winding down its mobile and PC operations, which continues to impact financials.
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The economic environment remains unpredictable, with potential impacts from US tariffs, requiring careful monitoring and agility.
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The transformation process is ongoing, and while progress is evident, the company acknowledges that it is not yet complete.
Q & A Highlights
Q: Can you provide an update on the cards part of the business? A: Adam Philpott, CEO: We are seeing a convergence in the hardware stack for biometrics, particularly on the payment side. Payments are becoming a feature of a multi-function product rather than a standalone product. We saw some business in Q1 across different areas, and we are responding to market trends accordingly.
Q: How should we view the revenue from the licensing deal with technology on the mobile side? Is it part of the core or discontinued operations? A: Fredrik Hedlund, CFO: The licensing deal is part of discontinued operations. It was a one-time payment, and future revenue will depend on how well the licensee executes. We are focused on asset monetization deals in our core space.