Precise Biometrics issues year-end report, says sales to FPC will stop in 2017
Precise Biometrics issued its year-end report for 2016, which saw the company’s consolidated net sales total SEK 97.2 million (US$10.9 million) compared to SEK 56.3 million.(US$6.3 million) reported for the year-end 2015.
In addition, the company’s EBITDA improved over the previous year-end to SEK 24.8 million (US$2.8 million) while its profit after tax totaled SEK 31.2 million (US$3.5 million).
At the end of the full-year period, Precise’s cash flow from operations for 2016 totaled SEK 37.7 million (US$4.2 million) while its cash and cash equivalents were SEK 135.8 million (US$15.2 million).
For Q4 2016, Precise’s consolidated net sales increased to SEK 25.7 million (US$2.9 million) compared to SEK 23.5 million (US$2.6 million) it reported for Q4 2015.
The company’s EBITDA totaled SEK 3.8 million (US$430,000) while its profit after tax totaled
SEK 2.7 million (US$300,000).
Finally, the company’s cash flow from operations for Q4 2016 improved to SEK 11.8 million (US$1.3 million) compared to SEK 8.8 million (US$1 million) in Q4 2015.
Precise highlighted several key events that occurred in Q4 2016 starting with the licensing agreements the company signed with the sensor manufacturers Samsung System LSI Business, Image Match Design Inc., InvenSense Inc. and VKANSEE.
In the last month, the company extended its licensing agreement with an existing sensor customer with guaranteed licensing revenue of at least SEK 17.5 million over two years.
Perhaps the biggest development is the finalization of Precise’s acquisition of NexID Biometrics, following final authority approvals in the U.S.
Precise Biometrics CEO Håkan Persson said the company expects a weaker revenue development during the first half of 2017 due to reduced revenues from its top client, FPC.
He added that sales to FPC will completely stop during the latter part of the year and be replaced by other clients as the company forecasts a flat 2017 revenue.
“The final quarter of the year was another good quarter for the company,” said Persson. “I am proud that in 2016 we succeeded in increasing net sales by 73%, delivering the company’s best year so far. Sales of our fingerprint software almost doubled during the year.
“We have led the company to profitability and are still only at the beginning of our journey. We have strengthened our position in a fast-growing market, developed our product offering and acquired many new customers who are important players in the ongoing development of the biometrics market. In 2017 we will continue to prepare the company for growth. I look forward to what I am convinced will be yet another exciting year in the company’s development.”