FPC issues Q2 2017 report, announces Qualcomm partnership
Fingerprint Cards (FPC) has released an interim report for Q2 2017, which saw revenues amounted to SEK 823.4 million (US$100 million) compared to SEK 1,666.1 M (US$202.2 M) in Q2 2016.
The gross margin for the quarter was 36 percent, while operating profit amounted to SEK 72.0 M (US$8.7 M), compared to SEK 675.1 M (US$82 M) in the year-earlier period.
Meanwhile, the company’s earnings per share before dilution amounted to SEK 0.10 M (US$10,000) compared to SEK 1.72 M (US$210,000) in Q2 2016.
The company’s cash flow from operating activities was SEK 528.0 M (US$64.1 M), compared to SEK 530.4 M (US$64.4 M) in the year-earlier period.
For the first half of 2017, FPC reported revenues of SEK 1,509.3 M (US$183.3 M), compared to SEK 3,157.3 M (US$426.2 M).
Operating profit amounted to SEK 142.8 M (US$426.2 M) (US$17.3 M), compared with SEK 1,293.7 M (US$157 M) in H1 2016.
The company’s earnings per share before dilution amounted to SEK 0.28 M (US$30,000), while its cash flow from operating activities was SEK 203.9 M (US$24.8 M).
“Towards the end of the quarter, inventory levels in the value chain normalized as anticipated, which was also confirmed by most of our customers and business partners,” Fingerprint Cards CEO Christian Fredrikson, said. “As a result, our own inventories declined and all of our major customers ordered sensors from us. We have continued to secure important orders which will result in increasing market shares with some major customers.”
The second quarter of the year was impacted by the previous inventory build-up in the value chain and lower market shares among a number of major customers. The combined result of this was significantly lower revenues than in the year-earlier period, although sequentially an increase of 20 percent was reported.
Fredrikson discussed some of the highlights of the quarter, including the launch of 19 new mobile devices featuring FPC sensors, new important partnerships with both module suppliers and distributors, new projects and partnerships with Zwipe and Kona, one product launch from Huawei and another from Microsoft, and the completion of the acquisition of Delta ID.
In a separate announcement, FPC revealed it is partnering with Qualcomm Technologies to pre-integrate FPC1028 fingerprint touch capacitive sensor on low- and mid-tier Qualcomm Snapdragon mobile platforms into Qualcomm Snapdragon 435, 430, 427 and 425 mobile platforms, as well as Qualcomm 210 and 212.
The combination of Qualcomm Technologies’ mobile platforms and FPC’s capacitive biometric fingerprint solutions provides customers with a seamless and convenient user experience.
“We are excited to work with Qualcomm Technologies, an industry leader in mobile technology,” said Fredrikson. “Together, we will provide our customers with a solution for low- and mid-tier fingerprint-enabled smartphones. We believe this will rapidly increase the fingerprint sensor attach rate in low- and mid-tier mobile devices worldwide.
“Our strategy is to be the market leader in all our segments, so this collaboration is fully aligned with our communicated plan. We expect the first products to become available on the market during the second half of 2017.”
Smartphone original equipment manufacturers (OEMs) can now access pre-integrated fingerprint technology on selected Snapdragon 400 and Qualcomm 200 Mobile Platforms.
The FPC1028 touch sensor is currently the mobile industry’s smallest and most affordable fingerprint sensor optimized for front and rear integration, which ultimately supports flexible industrial design.
“Qualcomm Technologies and Fingerprint Cards both share the same vision – to enable a compelling capacitive biometric use case into low and mid-tier devices to create even more differentiation for our customers at attractive price points,” ,” says Kedar Kondap, vice president of product management at Qualcomm Technologies, Inc. “This synergistic relationship is expected to greatly accelerate the availability for such solutions.”