May 9, 2016 -
Fingerprint Cards (FPC) recently announced its long-term financial targets — which covers the areas of growth, profitability and capital structure — from 2016 to 2018.
The company decided to present the rolling three-year targets due to the biometric solutions market’s rapid development, which makes it susceptible to several uncertain factors.
FPC emphasizes that the financial targets “are not to be seen as ‘guidance’, [but] rather an ambition that the board and management believe are reasonable long-term expectations for the company.”
In setting these targets, the company has made certain assumptions on factors like market growth, competition and average selling prices. Additionally, the targets are based on organic growth.
In terms of growth, FPC’s target is a compound annual revenue growth of approximately 60% over the next three years.
The company’s profitability target is an operating margin of a minimum of 35% for each year from 2016 to 2018.
Finally, FPC’s capital structure target is to maintain a strong balance sheet, typically with a net cash position.
The company will also return any excess capital to its shareholders through share buy-backs and/or dividends.
“Given the rapid market development we believe that an appropriate time frame for our moving financial targets is three years,” said Jörgen Lantto, CEO of Fingerprint Cards. “We will not update the targets due to short term, quarterly business fluctuations. Our targets will be revised annually, typically in conjunction with the year-end earnings release.”
Previously reported, Fingerprint Cards (FPC) published its annual report for 2015 documenting a record year that includes SEK 2.901 billion (US$356.6 million) in revenues, which amounts to a 1,142 percent rise over 2014.