Ipsidy, Synaptics and Nuance announce earnings in shifting biometrics market

Three biometrics companies have released earnings reports which show mixed results, and a fourth has commented on the potential impact of a key partnership on its upcoming earnings report.

Ipsidy has reported revenues of $0.6 million in the second quarter of 2019, while slightly lowering its net loss before taxes and adjusted EBITDA loss from a year earlier.

For the first half of 2019, Ipsidy recorded revenues of $1.4 million, down from $2.4 million in the first half of 2018, when the company provided its Search AFIS system to the Zimbabwe Electoral Commission in a one-time deal. Net loss before taxes, however, was down by 12 percent on the quarter, and 15 percent for the half year, compared to a year earlier. Adjusted EBITDA loss fell from $1.6 million in Q2 2018 and $3.3 million in 1H 2018 to $1.5 million in Q1 2019 and $3.1 million in 1H 2019.

“We are focused on specific international opportunities, where we are starting to see active interest in our solutions,” comments Ipsidy Chairman and CEO Philip Beck. “We believe that we can build on Ipsidy’s established presence in Latin America in an effective way, to provide our solutions to this important market. We are also working on opportunities in other regions, that we believe can be significant. We look forward to growing our platform revenue with more customers and users over the coming year, as we focus in on our active sales pipeline. We also continue to work on our plan for uplisting to a national exchange in due course.”

Ipsidy also closed a common equity funding round in June to raise roughly $3.1 million.

Earnings per share in the second quarter for Synaptics fell from $1 a year earlier to just $0.38 per share, but still beat the Zacks Consensus Estimate of $0.32 per share, the fourth consecutive quarter the company has surpassed EPS estimates, according to Yahoo Finance.

Synaptics reported revenues of $295.1 million, down from $388.5 million in Q2 2018. For the third quarter the consensus calls for EPS of $0.56 on revenues of $329.1 million, and for the full year earnings of $3.28 per share are expected, on $1.43 billion in revenues.

Following the end of the quarter in June, Synaptics appointed Michael Hurlston as president and CEO.

The end of June completed the third quarter of the fiscal year for Nuance, and the company has reported GAAP revenue and earnings per diluted share of $449.2 million and $0.03, respectively.
Non-GAAP revenue reported was $451 million and non-GAAP earnings per diluted share were $0.29. The above numbers are according to the ASC 606 revenue recognition standard, which Nuance moved to last year from ASC 605, under which standard all numbers would be slightly higher.

Nuance says in the announcement that it surpassed both margin and EPS expectations, and reported revenue near the high end of its guidance range. Revenue, organic revenue, and EPS all improved, while GAAP net income on an ASC 605 basis improved from a loss of $20.7 million in Q3 2018 to a gain of $12.2 million in Q3 2019.

The company had solid growth across each strategic business segment, completed the accelerated exit of its non-core Subscription Revenue Services (SRS) business and made progress towards spinning off its automotive business as the newly-named Cerence, Nuance CEO Mark Benjamin says.

“Nuance’s solid performance in the first three quarters of the fiscal year gives us confidence to raise guidance again for full-year EPS and operating margins, while maintaining full-year revenue guidance,” Benjamin comments. “In addition, we are maintaining our annual ARR guidance of $245 million to $255 million, which represents approximately 35% growth from last year.”

Samsung’s flagship Galaxy A10 smartphone could include fingerprint sensors from Fingerprint Cards, as the company has received and delivered orders for sensors as part of a production project, which upcoming financial reports from FPC will reflect, according to a company announcement.

Samsung may still use technology for different suppliers instead, but the integration of Fingerprint Cards sensors is called “likely” in the announcement. The company is also working on another production project which could potentially conclude with its fingerprint sensors in a future smartphone model from Samsung.

Article Topics

biometrics  |  financial results  |  Fingerprint Cards  |  Ipsidy  |  Nuance Communications  |  stocks  |  Synaptics