NEXT Biometrics raises $18.7M and reports 34 percent leap in gross margin for 2018
NEXT Biometrics revenue grew by 10 percent in 2018, and its gross margin swung from -6 percent in 2017 to 28 percent, according to the company’s interim report.
Fourth quarter revenue for the company was NOK 29.3 million (roughly US$3.4 million), down slightly from NOK 30.2 million ($3.5 million) in Q3 2018, but gross margins increased from 30 to 36 percent. NEXT also revealed that it has raised NOK 160 million ($18.7 million) in a private placement, and is making a subsequent offering with potential gross proceeds of NOK 28 million ($3.3 million).
“We have delivered consistently on our technology roadmap through 2018. Our FAP 20 sensor is with customers for testing and the Dual Interface solution for payment cards is soon ready for sampling,” NEXT Biometrics CEO Ritu Favre comments. “Increased year-over-year revenues for 2018 and the significantly improved gross margin confirm we are pivoting from product development to revenue generation. Going forward, we expect to leverage our large-size, highly secure and cost-effective sensor technology in all market segments to drive growth and position for the emerging hyper-growth of the payment smart-card market.”
Other highlights in the quarter for NEXT include a new partnership with Infineon, and a research and development collaboration with MK Group, as NEXT seeks to position itself for the expected explosion of the biometric card market. NEXT also began sampling its One Touch ID FAP 20 sensor in the quarter, and made progress in the government ID market with orders from Telpo, Tysso, and in India from Digitsecure.
Since the quarter’s end with the conclusion of calendar 2018, NEXT has received and delivered on an order for 30,000 sensors from Tactilis, increased its traction in India, expanded its biometric card ecosystem with deals in Asia, and initiated a cost reduction program.
NEXT revealed in its preliminary financial results report that it surpassed 6 million sensors shipped in Q4.