Precise Biometrics revises full-year 2017 revenue from $9.9 M to $8.4 M
Precise Biometrics has revised its revenue guidance for the full-year 2017 from its previous guidance of around SEK 83 million (US$9.9 million) to revenues in the range of SEK 60-70 million (US$7.2-8.4 million).
The company attributes the lower revenue projections to the strong competitive landscape of its customers, which has prevented them from increasing sales in line with Precise Biometrics’ previous projections.
As a result of the weaker sales development, Precise Biometrics will show an operating loss. This deviates from the company’s previous guidance that the full-year 2017 would result in an operating profit.
Preliminary royalty reports from Precise Biometrics customers shows that royalty revenues in Q3 2017 have not increase according to the company’s previous projections.
Due to the strong competitive situation in the capacitive sensor market, which is dominated by a few major sensor developers, Precise Biometrics’ customers have won fewer projects and been assigned lower volumes than initially projected.
The company has also revealed that royalty revenues in Q4 2017 will be lower than previously projected due to the current sales development.
Royalty is reported by Precise Biometrics’ customers after the end of the quarter and the company said it is difficult to predict as the royalty is based on actual sensor deliveries to smartphone manufacturers.
Precise Biometrics will present information related to Q3 2017 in its interim report for January-September 2017, which will be published on November 14th.
Last week, Precise Biometrics upgraded its fingerprint solution for smart cards.