Next Biometrics Group reports interim Q1 results
Next Biometrics Group ASA announced interim results for the first quarter, ended March 31, 2015.
The company outlined its many highlights over the past quarter, including the shipment of 52,000 fingerprint sensors, receiving an initial order for 100,000 fingerprint sensor units in the SmartHome segment, and its first TIER 1 customer increasing volume estimates by a minimum of 200,000 units.
Additionally, Next Biometrics saw 13 new hires this quarter to bring its staff to 52 employees, experienced significant growth in Next-enabled markets with several leads consisting of a 7-digit potential, and expanded its product portfolio from 1 to 6 modules.
“The Next first quarter focus has been to replace the first market generic product with six new module series designed to meet all requirements of the targeted mass markets,” said NEXT Biometrics CEO Tore Etholm-Idsøe. “Based on these new modules more than 160 customer leads have now been generated. To support these activities, NEXT has expanded its organization from 39 to 52 employees. Several key hires have been made, including VP of operations and Asia sales, Mr. Campbell Kan, the former ACER president PC global operations.”
Next Biometrics reported earnings of NOK 2.4 million (USD $306,402) in the first quarter of 2015, compared with NOK 4.4 million (USD $561,715) in the previous quarter.
The company’s revenue in the first quarter consisted of operating revenue and was generated by shipment of 52,000 fingerprint sensors. Next Biometrics’ calculated gross margin is still negative as a result of low production volumes and high manufacturing costs.
The cost of goods sold for these initial delivered sensors is currently included in other operating expenses, while many of the initial cost aspects related to production and delivery of these units are one-offs and do provide a clear and relevant cost of goods sold, said the company.
Next Biometrics said its payroll expenses totalled NOK 8.4 million (USD $1.07 million) in the first quarter of 2015, compared with NOK 6.4 million (USD $816,608) in the previous quarter and NOK 3.9 million (USD $497,620) in the first quarter of 2014.
The company said other operating expenses amounted to NOK 15.9 million (USD $2.03 million) in the first quarter of 2015, compared with NOK 33.6 million (USD $4.29 million) in the previous quarter and NOK 10.8 million (USD $1.38 million) in the first quarter of 2014.
The company’s net financial items amounted to a net income of NOK 2.6 million (USD $331,711) in the first quarter of 2015, which is the same as its net income in the previous quarter.
NEXT reported that its net loss in the first quarter of 2015 was NOK 19.6 million (USD $2.5 million), compared with a loss of NOK 33.4 million (USD $4.26 million) in the fourth quarter of 2014 and a loss of NOK 14.9 million (USD 1.9 million) in the first quarter of 2014.
Additionally, Next said that its decreased loss from the previous quarter can be attributed to the high level of ramp-up costs in the fourth quarter, including cost of goods sold. As a result, Next operated at a loss and did not incur deferred or payable income taxes in the first quarter of 2015 or in 2014.
The company said cash and cash equivalents amounted to NOK 98.7 million (USD $12.6 million) by the end of the first quarter of 2015 compared with NOK 129.3 million (USD $16.5 million) by the end of 2014.
The operations consumed cash in an amount of NOK 29.1 million (USD $3.7 million) in the first quarter of 2015 compared with NOK 36.0 million (USD $4.6 million) in previous quarter, which was mainly related to the loss of NOK 19.6 million (USD $2.5 million) in the first quarter and continuous inventory build-up of NOK 6.8 million (USD $867,751).
Next’s equity amounted to NOK 142.0 million (USD $18.1 million) at the end of the first quarter of 2015 compared with NOK 161.9 million (USD $20.7 million) at the end of 2014, said the company.
Previously reported, Next Biometrics Group ASA received an order for 160,000 fingerprint sensors to a customer that asked to remain confidential.