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FPC operating profits for Q2 2016 perform above expectations

FPC operating profits for Q2 2016 perform above expectations

Fingerprint Cards (FPC) issued its financial results for the second quarter, which saw its operating profits perform above expectations, and its new major Chinese customers continuing to capture market share.

The company reported second-quarter operating profit of SEK 709.7 million (US$82.6 million), revenues of SEK 1,666.1 million (US$193.27 million), and a gross margin of 49% — all of which are significant improvements over the same period last year.

For the first half of 2016, FPC’s revenues amounted to SEK 3,157.3 million (US$366.25 million), up 440% compared with the year-earlier period.

FPC’s operating profit for the first half of 2016 was SEK 1,298.7 million (US$150.65 million). Additionally, the company’s gross margin was 49% and its operating margin was 41%.

The company has also updated its revenue guidance for 2016 to SEK 7,200-8,300 million (US$835.2-962.8 million) from the previously communicated SEK 7,000-8,500 million (US$812-986 million).

FPC said it expects revenues in the second half of 2016 to grow sequentially due to the strong growth in the number of launched smartphones integrating its fingerprint sensors and in particular in view of the fourth quarter’s relative share of the smartphone market on an annual basis.

“We are increasing our market share in line with our previous estimates,” said Jörgen Lantto, CEO of FPC. “Ahead of 2016, we estimated that we would grow our share of the market for fingerprint sensors from 45% in 2015 to 50-70% in 2016. Our current estimate is that the outcome will end up in the upper part of this interval.

“Our growth is benefiting from our major Chinese customers continuing to capture market share. Huawei, Oppo and Vivo in particular are continuing to show very strong growth. In addition, Xiaomi has become a large customer for us and has to date launched eight smartphones with our sensors since November 2015.”

As previously announced, Lantto will step down from the CEO position next month and be replaced by Christian Fredrikson.

“I am very proud of the growth we have generated during my time as CEO, which has broken all records, and that our sensors have been integrated into hundreds of millions of smartphones,” said Lantto. “I am handing over leadership of a company that has exceptionally favorable potential for continued sharp growth and I am convinced that the strong organization and world-leading technology we have brought forward in the recent years will ensure that FPC will remain the leading supplier of fingerprint sensors.”

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