Zwipe 2018 results show race to biometric payment cards’ revenue
Zwipe recorded EBITDA results of negative NOK 60.3 million (roughly US$7 million) and net loss of NOK 72.7 million ($8.4 million) for full-year 2018, and the company expects costs to exceed its revenues for several more quarters, but recent events have positioned it to pursue market share as biometric payment cards move toward mass adoption, according to its annual report.
The company reports 2018 revenue of NOK 2.3 million ($270,000) from sales of biometric inlays for dual-interface payment card pilots and access control cards, up from NOK 1.2 million ($140,000) in 2017. Operational costs for Zwipe increased, however, driven by higher payroll expenses, operational expansion, and R&D efforts towards commercializing its technology.
Since the company’s fiscal year-end, a share offering raised NOK 120 million ($14 million) for Zwipe, and an initial public offering on the Oslo’s Stock Exchange’s Merkur Market further improves its access to capital. Zwipe also received a €2.3 million ($2.6 million) grant from the Horizon 2020 program late in 2018 to bring its biometric technology to market.
In a video, CEO André Løvestam refers to the market as an environment of “co-opetition” in which every stakeholder is pursuing opportunities for multi-sourcing. He expresses optimism that along with partners Fingerprint Cards and Gemalto, Zwipe has the technology and intellectual property to be a leader in the biometric payment card space.
The company’s board of directors has also called an extraordinary general meeting for April 11, 2019, to vote on the establishment of a nomination committee, proposed authorizations of increased capital, a three-week notice period for a general meeting, and the renumeration of board members.
Shares of Zwipe closed Tuesday trading at NOK 14.40, down from an initial price of NOK 20.