Next Biometrics issues financial results for Q2, outlines expectations for H2
Next Biometrics Group ASA issued the interim results for the second quarter ended June 30, 2016, as well as outlined its expectations for the second half of 2016.
The company’s sales in Q2 2016 reached NOK 26.6 million (US$3.24 million), up from NOK 5.2 (US$609,630) in the Q1 2016.
The significant revenue increase can be attributed to the higher volume fingerprint sensor shipment in the second quarter.
In the first half of 2016, the company’s revenue amounted to NOK 31.8 (US$3.88 million) compared with NOK 2.7 (US$329,200) in the first half of 2015.
Additionally, Next experienced a net loss of NOK 51.4 million (US$6.27 million) in Q2 2016 compared with a loss of NOK 49.5 million (US$6.04 million) in the previous quarter.
Net loss for H1 2016 amounted to NOK 100.9 million (US$12.3 million) compared to a loss of NOK 44.1 million (US$5.38 million) in H1 2015.
“During the second quarter of 2016, Next continued to scale-up its mass production capacity for volume deliveries,” said Tore Etholm-Idsoe, CEO of Next Biometrics. “After initial increased shipments in first quarter, fingerprint sensor volumes continued to grow in the second quarter.
“During this high growth phase, a number of production yield optimization projects were initiated. Such cost down improvements have been proven effective late in the second quarter and will have impact from late in the third quarter of 2016. All costs related to Q2-transition to new products and volume ramp-up have been booked in this quarter.”
Etholm-Idsoe also shared several highlights for Q2 2016, including the company showcasing the first flexible smart card sensor compliant with ISO-specifications; receiving its first volume order for smart card sensors NOK 12 million (US$731,556); raising gross proceeds of NOK 164.9 million (US$20.11 million) in new equity; and launching new low-power, high yield sensor for H2-2016 and 2017 markets
Etholm-Idsoe also detailed the company’s outlook for H2 2016, including expectations that its Q3 and Q4 2016 sales will see a marginal increase compared to Q2 2016; improved production yields and higher production capacity; a strong focus on mass-production preparations for flexible sensors; continued negotiations with key players in the smart card industry; further investments in 2018 generation smart cards; and the completion of the design phase for its Generation 2 ASIC project with first volume shipments expected during Q2 2017.
Previously reported, Next Biometrics issued the interim results for the first quarter ended March 31, 2016, which saw the company’s total revenue increase to NOK 5.2 million (US$621,786) compared to NOK 2.4 million (US$286,978) one year ago.