Fingerprint Cards reports revenue guidance of approaching $1 billion for 2017
Fingerprint Cards expects its revenues to reach 7,500-9,500 MSEK ($816M-1.03B USD) in 2017, according to guidance communicated as part of its Capital Markets Day on Thursday.
The company expects its operating margin for the coming year to be at least 35 percent.
The growth strategy of Fingerprint Cards includes possible investment and moves into smart cards, other segments including PCs, IoT and automotive sensors, and industrial and medical hardware, as well as possible M&A opportunities. As sensor penetration in the smartphone market is still around 50 percent, for its core mobile business the company will focus on emerging markets and second tier manufacturers.
The move into smart cards, which began with the release of new ultra-thin sensors earlier this month, is expected to involve pilots and initial volumes in 2017, with revenues “taking off” in 2018. It is also targeting the first half of 2017 for a launch of its sensors for PCs, which it says are an attractive growth opportunity due to the low penetration of fingerprint sensors in the segment.
Fingerprint Cards sees the total addressable fingerprint market growing by a compound annual rate (CAGR) of 74 percent from 2016 to 2019. With a strong portfolio of smartphone vendor partners, the company sees an opportunity to benefit from the strong growth of China’s third-party mobile payment market.
Eventually, it intends to integrate its sensors with smartphone displays, under the cover glass, to deliver a seamless design. To that end, it is continuing to develop its intellectual property, which currently includes over 120 patents.
Fingerprint Cards restated its profit and loss reporting from January to September of 2016, but the resulting profit before tax remained 2,066 MSEK ($225 million).
Fingerprint Cards was announced as the winner of Deloitte’s annual Sweden Technology Fast 50 in November. The company also recently committed to improving its communication in response to criticism from Nasdaq Stockholm.