Idex Biometrics reports modest results and housekeeping in run-up to payment cards commercialization
Idex Biometrics has reported revenues in the first quarter of 2020 of $100,000, for an EBITDA and net loss of $5.8 million and $6.3 million, respectively, for the period. Though the revenue total was a decrease from $160,000 in the same period a year earlier, the EBITDA and net results were improvements, based on reduced expenses. Net loss per diluted share was $0.0088.
Biometric payment cards are expected by Idex Biometrics and other industry participants to move beyond pilots to commercial deployments this year, and the company believes it is well positioned for the market, as the only sensor company to have cards certified by two global payment networks. China UnionPay and Mastercard have issued certifications to cards with technology from Idex.
Highlights during the quarter include the appointment of Vince Graziani as CEO, the launch of its TrustedBio biometric SoC, new deals with Idemia and Zwipe, and Idex plans to ramp shipments for its first production order of fingerprint technology during Q2.
“The IDEX team has achieved significant milestones in the first quarter and into the second,” states Graziani. “Our technology was included in certified biometric cards by two major global payment networks representing 70 percent of global branded payment cards. We launched a new product family, TrustedBio, which we believe is a real game changer in terms of cost and performance. IDEX was selected by IDEMIA, one of the world’s largest card manufacturers and Zwipe, a pioneer in biometric payment cards for their next generation of biometric payment cards.”
Graziani also thanks the company’s new and existing shareholders for their recent $10 million investment to support its growth.
Idex Biometrics Nomination Committee reviewed the composition of the board, which remains unchanged as all five members will continue with the second year of their two-year periods. The company is reviewing the board’s makeup regularly, and is weighing a desire to include more international members to reflect Idex’ increased global operations outside of Norway. In this light, Norwegian regulations requiring board members be nationals of its home country are a challenge, the Nomination Committee notes.
There are currently two members of the board from Norway, one from Britain and two from the U.S. Going forward, more members in the U.S. and Asia may be sought to align with the company’s activity and main markets.
The board’s renumeration and the election of a new member and chair for the Nomination Committee are also announced.
In a supplemental proposal to Idex Biometrics 2020 annual general meeting on May 15, the board is seeking to reduce the weighted average exercise price of outstanding subscription rights from NOK 5.40 to NOK 1.71 per share. The rights would be granted with a re-started three-year vesting period, to reflect actual market prices for the shares and therefore provide a real incentive for employees.
The company also disclosed that its Chairman of the Board Morten Opstad held 24.81 percent of the share capital and votes for Idex’ extraordinary general meeting on May 15.