Precise Biometrics completes reorganization and looks ahead to improving results in 2020
Precise Biometrics has completed its corporate reorganization, including the closure of its Karlstad office and centralization of its research and development operations to Lund, in a first quarter of fiscal 2019 marked by a 33 percent decline in revenues.
The company reports SEK 12.2 million (approximately US$1.3 million) in revenues for the quarter, an operating loss of SEK 7.9 million, and a net loss of SEK 7.8 million. Earnings per share were negative SEK 0.02. Precise Biometrics CEO Stefan K. Persson expressed optimism for future earnings, however, saying initiatives being conducted in 2019 will begin bearing fruit in 2020. The three areas of focus for the company will be digital identity, smart cards, and mobile devices.
Those initiatives include initial Proof of Concept testing of its Precise YOUNiQ digital identity product, the establishment of an office in Shanghai, and an integration of its algorithm into Hyundai auto systems.
“The cost savings made possible by the reorganization reduces the yearly cost level by SEK 10 million,” Persson says. “In accordance with previous communication we expect 2019 to be a challenging year from a financial perspective considering the volatility in the market for mobile devices. We are operating in an industry that is expanding, in a market that is demanding biometrical solutions and we have a strong financial position with SEK 67 million in cash flow and cash equivalent, which allows for further initiatives in our business areas.”
Precise will also vote on reversing a previous 1:10 share split at its AGM this week.