Next Biometrics shares update and plan to cut costs as fingerprint market reacts to outbreak
Revenues for Next Biometrics will be approximately NOK 20 million (US$1.9M) in the first quarter of fiscal 2020, 117 percent higher than the company’s low point in Q4 2019, according to a status update announced along with a plan of action, as the company assesses the impact of the COVID-19 outbreak.
Next Biometrics plans to safeguard its intellectual property and “key individuals,” maintain relationships with existing and new customers, carry out deliveries, and conserve its cash.
The plan involves outsourcing some operations to countries with lower costs, further reducing headcount, streamlining and lowering vendor costs, simplifying the company’s legal structure, which will reduce administration costs, and simplify its product offerings. These changes are intended to bring the company’s operating expenditures run rate to roughly NOK 5 million a month during Q4 2020, well down from NOK 16 million in Q4 of last year.
“Management has acted resolutely with a restructuring plan that will provide a leaner and more customer focused operation. The plan will reset the company, conserve cash, and enable Next to become a commercially focused technology company,” comments Next Biometrics CEO Peter Heuman.
Next Biometrics previously announced its intention to reduce head count and cut costs to navigate the impact of COVID-19 on its fingerprint business.