Fingerprint Cards announces round of write-downs, write-offs and more job cuts
Fingerprint Cards has announced it will take additional steps to strengthen its competitiveness as its sales and gross margins continue to weaken in the first quarter of 2018, slashing an estimated 179 positions to save SEK 350 million (US$39.9 million) annually.
The company will also write down its non-cash inventory by approximately SEK 336 million ($38.3 million) and write off capitalized research and development projects to settle non-cash assets of SEK 143 million ($16.3 million) as cost adaptation measures in response to weak market development and negative price development for capacitive sensors, according to the announcement.
The job cuts are on top of the elimination of 185 jobs announced in Q1, which the company still anticipates will save it SEK 360 million ($41.1 million) in 2018. The write-downs and write-offs are expected to be recorded in Q2, 2018, while restructuring costs of SEK 65 million ($7.4 million) will be recorded mainly in Q3, and its cost saving measures expected to reach full effect by the end of Q4.
FPC has shifted its focus to put greater emphasis on new segments and multimodal biometrics, including both iris and facial recognition.
“We are continuing to adapt our operations to the fundamental and rapid change in business conditions, with the objective of returning to profitable growth,” comments Christian Fredrikson, President and CEO of Fingerprint Cards. “The cost reduction measures we are communicating today are important in order to strengthen our competitiveness.”
Fingerprint Cards is currently seeking a new CFO.