FPC annual report for 2015 finds revenues up by 1,142%
Fingerprint Cards (FPC) has 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.
Other key accomplishments mentioned in the report include FPC’s expansion into more customer segments as it experienced favorable opportunities above and beyond the smartphone market, improving its development capacity, and increasing its investments in order to accelerate its innovativeness.
In the 97-page report, FPC says that growth in the global smartphone market has been strong but it is expected to slow down. In fact, the company predicts that 85% of smartphones will have biometric sensors by 2018.
Meanwhile, the penetration of fingerprint technology shows no signs of slowing down. FPC estimates that penetration of biometrics in smartphones was about 17 percent in 2014, slightly above 30 percent in 2015 and projects that it will be slightly above 50 percent in 2016.
“2015 was definitely our breakthrough year, which showed the strength of our business,” FPC CEO Jorgen Lantto says in the report. “From a relatively cautious approach among our smartphone manufacturers during 2014, not only interest but also significant demand was awakened.”
The company’s operating margin for 2016 is estimated to be greater than the operating margin of 37% achieved in the second half of 2015, according to the report.
Beyond applications in smartphones, FPC his expanding applications of its fingerprint sensors into several other areas, including smartcards, the automotive industry, physical access, the healthcare sector, banking and finance, the public sector, login devices, and the Internet of Things.
“FPC sees tremendous potential to capitalize on its economies of scale in applications of the company’s biometric system solutions in multiple customer segments,” Lantto says.
To support this growth, FPC has been making significant investments in R&D. From 2014-2015, the company’s R&D team has grown from 20 to more than 140 employees.
In the report, FPC highlights a series of continued objectives for further growth including combining substantial growth with profitability; strengthening its position as a high value-adding partner in biometric systems; reinforcing its market-leading position in the mobile phones market and ultimately outperforming the market in terms of growth based on increasing penetration of fingerprint sensors; and expanding into additional vertical markets, primarily the markets for smartcards and automotive applications.
FPC also outlines its growth strategy, stating that it aims to primarily grow organically and through complementary acquisitions.
The company states it will grow in multiple dimensions; expand its biometrics scope including trackpad integration, providing greater security and adding more functionality; and will introduce new offerings, such as additional sensor solutions and potential acquisitions.
“The board of directors’ focus will now be to secure the company’s continued development of new applications for other markets,” FPC chairman of the board Urban Fagerstedt said in the report. “Accordingly, we are broadening the business base, while achieving a better spread of risks. Since there are many application possibilities, focus is the key to having an impact. The market that is now beginning to take shape is the one based on the application for smartcards. Interest from other industries is considerable, resulting in excellent prospects moving forward.”
Previously reported, Bloomberg Business said that Fingerprint Cards was Europe’s best performing stock for 2015, climbing 1,391 percent in 2015, the biggest gainer among the 1,000 companies on the Bloomberg World EMEA Index.
access control | automotive biometrics | banking | biometrics | financial report | Fingerprint Cards | fingerprint technology | healthcare | IoT | Jörgen Lantto | research and development | smartcards | smartphones | touch sensor