November 24, 2015 -
NEXT Biometrics has reported its financial earnings for the third quarter, which includes the company reaching an operating loss of 30.3 million crowns (US$3.5 million) compared to a loss of 14.7 million crowns (US$1.7 million) one year ago, according to a report by Reuters.
NEXT said that the increased loss was mainly the result of increased R&D costs — which included work on new sensor formats — and production ramp up cost.
Meanwhile, the company’s operating revenue in the period was 0.2 million crowns (US$23,102) versus 1.2 million crowns (US$138,614) year ago.
“Sales have, as previously communicated, been insignificant in Q3, due to the above described transition to the new generation of sensors,” NEXT Biometrics said in a statement to investors. “A major part of company resources were in Q3 allocated to the Dell project. Dell is the first top-tier Notebook and Tablet manufacturer to fully recognize the fundamental importance of larger sensors. It is anticipated that this customer reference will have a positive impact on company sales going forward.”
The company also saw several highlights in the third quarter including the completion of a new ultrathin, design-friendly sensor generation.
During the same period, NEXT made the final preparations leading to an announcement from Dell that the company’s notebooks and tablets would use NEXT Biometrics sensors in a new range of laptops and tablets.
There were also negotiations leading to NEXT’s 120 million crowns (US$14.78 million) investment from Greenbridge Partners.
NEXT’s payroll expenses increased from NOK 10.3 million (US$1.19 million) in Q2 2015 to NOK 14.4 million (US$1.66 million) in Q3 2015.
Following its highlights from the third quarter, CEO Tore Etholm-Idsoe discussed NEXT’s strategic focus going into 2016. The company will continue to deliver sensors that provide both security and convenience for applications.
He noted that NEXT will deliver sensors with a format of 144 to 201 mm squared for “quality critical markets’, which include smartphone and notebook markets, new NEXT-enabled markets, and traditional markets.
In order to truly provide added value to payments, corporate access and government applications, the fingerprint sensors must work securely (FAR 1/10,000 or 1/100,000), conveniently (FRR < 1%), everyday (over the lifetime of the device), everywhere (indoor, outdoor, in dry, in humid conditions) for 98% of any given population, Etholm-Idsoe said. The full webcast of NEXT Biometrics’ earnings report can be viewed here.