Biometrics stocks news: Next update, NXP down, Unisys up, new Ipsidy board member
Revenues from third quarter sales of Next Biometrics’ fingerprint technology are expected to drop by roughly NOK 17 million (US$1.86 milllion), according to an update from the company, down from NOK 30.2 million ($3.3 million) in Q3 2018, for a five percent decrease in overall revenue for the first nine months of the year.
Next is dealing with the fallout of a reduction in sensor module shipments to a tier 1 notebook customer in the U.S., as it warned of in its Q2 earnings report, which contributed to the revenue decline and will continue to do so through Q4 and into 2020. The decrease in Q3 revenue was partially offset by increased shipments of sensors and readers to other customers, and Next says it is continuing to diversify its customer and revenue base.
An inventory write-down during Q3 is expected to wipe out nearly NOK 3 million ($330,000) in older-generation sensors held in stock which are no longer considered suitable for commercial use, though the write-down does not affect the company’s cash holdings, which was approximately NOK 132 million ($14.5 million).
The company says it will continue to take a disciplined approach to new investments and cost levels, and plans to release its interim report for Q3, 2019 on November 12.
Next did secure an order for fingerprint sensor modules for biometric smart card readers for an access control application, which is expected to generate revenue in Q4.
NXP affected by market uncertainty
Amid geopolitical uncertainty which has affected demand, NXP Semiconductors has announced revenue of $2.3 billion for the third quarter of 2019, down 7 percent on a year-over-year basis.
The company’s GAAP gross margin was 52.4 percent, up 1 percent from a year earlier, and GAAP operating margin was 10.3 percent in the quarter. NXP also payed an interim dividend for Q3 of $0.375 per ordinary share, 50 percent higher than the previous quarterly dividend.
“With sales near the high-end of our guidance and good expense control, we successfully delivered improved operating profitability above the high-end of our guidance range,” comments NXP Chief Executive Officer Richard Clemmer. “Additionally, during the quarter we returned $79 million to our shareholders, for a total of $6.6 billion returned to shareholders since July 2018. Looking forward, we continue to believe that our product portfolio investments are addressing our customers’ long-term requirements, while in the short-term the global demand environment appears to have stabilized, but the intermediate demand environment continues to be uncertain, and has not markedly improved.”
NXP’s results from mobile where actually up slightly, while its industrial and IoT segment recorded a 14 percent revenue decline from Q3 2018.
Biometric contract boosts Unisys results
Unisys has announced revenue growth of 10.1 percent on a year-over-year basis to $757.6 million, and even higher growth on a constant currency basis, supported by its expanded facial recognition contract with the Queensland Department of Transport and Main Roads (TMR) in Australia.
Other highlights in the quarter include a new contract with DISA, a cargo booking contract with Malaysia Airlines cargo division, and a contract to supply its InteliServe to Bancolumbia.
The company recorded a net loss in the quarter of $13.2 million, compared with a net income of $6.1 million in the prior year period. Unisys’ services segment revenues grew by 8 percent, while technology revenues increased by over 25 percent.
Ipsidy adds payments expert to board
Security and identity authentication specialist Phillip Kumnick has been appointed to Ipsidy’s board.
Kumnick brings experience in payments with both Mastercard and Visa. While at Visa, he led the development of the company’s encryption and tokenization products and services for partner’s point of sale transactions, and he also played a critical role in in the design of the Secure Remote Commerce (SRC) standard for e-commerce checkouts.
“We are delighted that Phil Kumnick has agreed to join Ipsidy as a director,” says Ipsidy CEO Philip Beck. “At this critical stage of the company’s development, which we believe is at an inflection point, we welcome Phil’s extensive experience and depth of knowledge in particular in the fields of security, platform operations and international markets.”