Fingerprint Cards projects revenue range of US$100.3 – 105.3M for Q3
Fingerprint Cards AB (Fingerprints) has projected the company’s third quarter revenue to fall in the range of SEK 800 – 840 million (US$100.3 – 105.3 million), which is in line with the previous quarter.
As previously communicated Fingerprints does not provide forecasts but makes it a point to disclose this information since the company considers that this level of revenues significantly differs from the expectations currently in the fingerprints market.
Fingerprints is currently experiencing a cautious market, partly driven by Apple’s announcement that its upcoming iPhone X will feature a facial sensor in lieu of its existing fingerprint sensor.
As a result, distributors and module houses delivering to the company’s OEM-customers have therefore reduced their inventory levels.
In spite of this, Fingerprints estimates that it will ship 40 percent more sensors during the third quarter compared to the second quarter.
The company also noted that the product mix has changed as most of Fingerprints’s larger OEM-customers have switched over to backside mounted sensors because of its lower price.
This, in turn, has lowered the average selling price (ASP) of sensors, which has a negative impact on revenues.
Fingerprints has previously communicated an ASP-reduction of more than 20 percent per annum, however, the current rate is approximately 30 percent.
Meanwhile, the company’s revenues have decreased because of the weakening of the US dollar.
The company also said it has not finalized the financial statements for the third quarter and therefore does not provide any forecast for other items in the balance sheet, income statement or cash flow statement.
However, Fingerprints did confirm that it does not expect any significant deviations from previously communicated assumptions regarding costs and balance sheet items.
The company will present the report for the third quarter as planned on October 26.
In July, Fingerprint Cards issued 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.