IDEX reports slow quarter but expects volume shipments for biometric cards soon
Sales of IDEX fingerprint products came to a near-standstill in the second quarter, but the company anticipates volume orders of its sensors for biometric cards now that it has passed all certifications and is ready for shipments, according to IDEX’ first half 2018 report.
IDEX reported revenue of NOK 0.3 million (US$36,000) for Q2 2018, and NOK 2.1 million ($250,000) for the first half of the year, down from NOK 4.7 million ($560,000) in the same quarter and NOK 11.5 million ($1.36 million) in the first half of 2017. The difference in revenue is largely due to shipments of sensors for mobile handsets in 2017, while the its shipments so far in 2018 are mainly for cards and embedded products.
The company’s EBIT loss increased from NOK 59.5 million ($7.05 million) in Q2 2017 to NOK 64.8 million ($7.67 million) in the latest quarter, with amortization and depreciation amounting in NOK 1.7 million ($200,000). For the first half, EBIT loss was NOK 120.8 million ($14.31 million), down slightly from NOK 124.6 million ($14.76 million) in the first half last year.
“IDEX continues to experience extremely strong interest from customers in the biometric card space, particularly in Asia where the company currently has a large number of active commercial engagements, and expects additional customers and an increased pipeline of opportunities globally,” the company said in the report’s outlook.
“Further, the company anticipates pilots of its biometric solution for dual-interface cards to commence in the second half of 2018 with subsequent customer trials. This solution is expected to have an accelerated path given the extensive learning from previous proof of concept pilots, end customer trials and the certification process for its contact-based payment card.”
So far this year, contact-based cards with IDEX sensors have supported successful trials in multiple regions, as well as a launch in the Middle East, and the sensors have passed all requirements for a global payments provider. IDEX’ sensor for dual-interface cards passed engineering integration and validation for Feitian Technologies, and was selected by JINCO Universal.
IDEX also joined the Biometrics Institute earlier this month.
The company says it is experiencing strong interest in its products, particularly in Asia, with more than three times as many active engagements as six months ago. It expects orders from existing customers and initial orders from multiple customers and partners in the second half of 2018.