FB pixel

Fingerprint Cards revises Q4 earnings down

 

Fingerprint Cards has revised its fourth quarter 2017 earnings downward, predicting a 62 percent decline in revenue from the same quarter a year ago due to weak market development and price pressures on capacitive sensors.

The Chinese smartphone market has weakened during the quarter, the company estimates, and it expects revenues to remain weak in Q1 2018.

Fingerprint Cards now estimates revenues for Q4 2017 of SEK 615.3 million (US $78.1 million) and operating profit to decline to SEK -40.6 million ($-5.2 million), as its gross margin declines from 44 to 21 percent. Excluding an inventory item with a negative impact of SEK 58.9 million ($7.5 million), and a non-recurring item boosting operating profit by SEK 28.2 million ($3.6 million), the company estimates operating profit (EBIT) will be SEK -9.9 million ($-1.3 million). Cash flow from operations is expected to be SEK -1.7 million ($-0.2 million), and cash and equivalents will amount to SEK 920.2 million ($117.3 million).

Steps taken by Fingerprint Cards to restore growth and improve profitability include slashing 185 employees, and reducing external costs related mostly to consultants, but also to its own employees. The company expects these measures to generate savings of SEK 360 million ($45.9 million) in 2018, while restructuring costs are estimated at SEK 40 million ($5.1 million), which will be mostly reported in the first half of 2018.

Fingerprint Cards is developing new products for smartcards and multimodal fingerprint and iris solutions, in addition to capacitive sensors, according to the announcement. Its year-end report for 2017 is expected on February 9.

The company’s stock fell from SEK 16.82 ($2.14) at closing on Wednesday to SEK 12.22 ($1.56) at Thursday’s open, and had recovered to SEK 13.25 ($1.69) late in the day’s trading on the Stockholm exchange.

As previously reported, Fingerprint Cards was approached by a potential investor seeking a controlling stake in late 2017.

Article Topics

 |   | 

Latest Biometrics News

 

New Ofcom proposal calls for highly effective age assurance for livestreams

Ofcom is determined to make the most of its “Year of Action,” having released yet another set of proposals to…

 

World Economic Forum looks to get a GRIP on global regulatory environment

A new piece written by the World Economic Forum (WEF)’s head of digital inclusion, Kelly Ommundsen, looks at the gap…

 

Respected legal authority frames age assurance legislation as segregation, suppression

Language plays a fundamental role in how concepts and technologies are introduced into and evolve alongside society. The debate over…

 

New high scores in fingerprint biometrics accuracy for Dermalog, ROC, Innovatrics

New algorithms submitted to the U.S. National Institute of Standards and Technology for its Proprietary Fingerprint Template (PFT) Evaluation have…

 

Australia’s safety code for search tools takes effect, with age verification rules

Like its counterparts in the EU and UK, Australia’s digital regulator is beginning to formalize its online safety codes. The…

 

Age verification coming to major video game mod site in EU, UK

Want to make sweet love to that frost giant who lives in the fjord? You may have to prove your…

Comments

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Biometric Market Analysis

Most Viewed This Week

Featured Company

Biometrics Insight, Opinion

Digital ID In-Depth

Biometrics White Papers

Biometrics Events