NEXT Biometrics reports increase in positive gross margins for Q2
NEXT Biometrics has recorded its second consecutive quarter with positive gross margins, with the margin increasing from 19 to 26 percent, the company says in a quarterly report to the Oslo Exchange (PDF).
Revenues for Q2 2018 were NOK 25.6 million (US$3.05 million), up from NOK 23.3 million ($2.8 million) in Q1, while net loss grew to NOK 47.1 million ($5.6 million) from NOK 41.9 million ($5 million) in Q2 2017. The company’s gross margin in the same quarter a year ago was negative 6 percent.
“The second quarter included several notable achievements for NEXT Biometrics. We’re pleased to deliver further increased gross margins on the back of higher revenue and sensor shipments. Achieving Aadhaar hardware certification in India is a significant milestone for NEXT, enabling us to participate in Government ID markets where sensor size is the determining factor in the security of the system. This certification has led to initial orders of fingerprint readers in India. In August, Tactilis delivered their first volume lots of biometric smart cards using the NEXT ASIC and rigid sensor technology. During the quarter, we also made some critical additions to our sales and marketing organization that will help us drive revenue in our priority markets. These actions and others are driving positive momentum for NEXT Biometrics during the second half of the year.”
NEXT received initial orders for its Scallop fingerprint readers for use with India’s Aadhaar program earlier this month, and is expanding its operations in the world’s most populous country to support its increased activity there.