· Revenues amounted to SEK 823.4 M (1,666.1), down 51% compared with the second quarter of 2016
· The gross margin was 36% (49)
· Operating profit amounted to SEK 72.0 M (675.1) and the operating margin to 9% (41)
· Earnings per share before dilution amounted to SEK 0.10 (1.72)
· Cash flow from operating activities was SEK 528.0 M (530.4)
First half of 2017:
· Revenues totaled SEK 1,509.3 M (3,157.3), down 52% compared with the year-earlier period.
· The gross margin was 39% (49)
· Operating profit amounted to SEK 142.8 M (1,293.7) and the operating margin declined to 9% (41)
· Earnings per share before dilution amounted to SEK 0.28 (3.16)
· Cash flow from operating activities was SEK 203.9 M (809.8)
CEO`s comments
Normalized inventory levels and positive cash flow
Towards the end of the quarter, inventory levels in the value chain normalized as anticipated, which was also confirmed by most of our customers and business partners. As a result, our own inventories declined and all of our major customers ordered sensors from us. We have continued to secure important orders which will result in increasing market shares with some major customers.
The second quarter of the year was impacted by the previous inventory build-up in the value chain and lower market shares among a number of major customers. The combined result of this was significantly lower revenues than in the year-earlier period, although sequentially an increase of 20 percent was reported. Revenue during the quarter was SEK 823 M and operating profit totaled SEK 72 M, corresponding to an operating margin of 9 percent. The gross margin, excluding provisions for an obsolescence reserve, remained favorable at 42 percent. Our cash flow was in line with the year-earlier period and was SEK 528 M, as a result of us reducing our own inventories and current receivables. Despite financing a large part of the acquisition of Delta ID with internally generated funds, our cash and cash equivalents now amount to SEK 934 M.
During the quarter, 19 new mobile devices featuring our sensors were launched. We announced new important partnerships with both module suppliers and distributors, which enable us to reach new customers and market segments. This also very much applies to the announced partnership with Qualcomm, which means that our FPC1028 sensor is pre-integrated into selected Snapdragon mobile platforms.
With respect to new market segments, we have also been able to unveil projects and partnerships with Zwipe and Kona-I that show that the smartcard market is developing as we had expected. As a result, we have succeeded in securing a strong position for future growth in smartcards, although it will take a few more years before market volumes can be compared with those we see for smartphones. We have also noted successes in the PC segment, with one product launch from Huawei and one from Microsoft.
After having completed the acquisition of Delta ID, we are now the only supplier offering biometric solutions based on both fingerprint sensors and iris recognition. The acquisition is an important step in our strategy to broaden our offering and has roused great interest among a number of our major customers.
Christian Fredrikson, CEO
For further information, contact: Christian Fredrikson, President and CEO, Fingerprint Cards AB (publ), +46 31 60 78 20, investrel@fingerprints.com
Welcome to Fingerprint Cards` presentation of the interim report on the second quarter of 2017 on July 21 at 3:00 p.m. CEST. The presentation will be webcast, and participants can register via the link below.
For media and analysts: The telephone conference dial-in is +44 (0) 2071 928000 (international participants) or 08 506 921 80 (Swedish participants). State conference ID 44797154.
This information is information that Fingerprint Cards AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 7:00 a.m. CEST on July 21, 2017.
About Fingerprint Cards (Fingerprints)
Fingerprint Cards AB, Fingerprints, with its Swedish roots, is the leading global biometrics company, whose mission is to spearhead the development of biometric interaction that facilitates the convenience and integrity of the individual. Its value is proven daily by users in millions of devices, through billions of touches, who are their own key - quite simply, with a human touch. Fingerprints develops biometric systems comprising sensors, algorithms, software and packaging technologies. The success is based on product development at the cutting edge of technology, which results in world-leading products in terms of security, convenience and performance. The current product range consists largely of fingerprint sensors and customers are primarily manufacturers of smartphones and tablets, where the company is market leading. As the use of biometric solutions increases, Fingerprints is working to broaden its offering by using different biometric techniques, or modalities, and to identify other market segments where the solutions can be used, such as smart cards, PCs, automotive and online devices (IoT). The Fingerprints share is listed on Nasdaq Stockholm (FING B). The company has shown strong growth and sales totaled SEK 6,638 M in 2016, with an operating margin of 39 percent. Most of the more than 500 employees work in Sweden, but the company has offices worldwide, from Shanghai to Silicon Valley.
Important information Issuance, publication or distribution of this press release in certain jurisdictions could be subject to restrictions. The recipient of this press release is responsible for using this press release and the constituent information in accordance with the rules and regulations prevailing in the particular jurisdiction. This press release does not constitute an offer, or invitation to acquire or subscribe for new securities in Fingerprint Cards in any jurisdiction.
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Fingerprint Cards AB via GlobeNewswire HUG#2121969
