Biometrics companies’ earnings announcements put transitions in focus

Hikvision handling uncertainty, Patriot One goes commercial, OneSpan shifts to recurring revenue
Biometrics companies’ earnings announcements put transitions in focus

Publicly-traded biometrics and AI computer vision companies have reported earnings that both the show the impact of the pandemic and provide reasons for optimism. Hikvision’s numbers have gone up, Patriot One’s initial commercial results are promising, CyberLink and OneSpan are soldiering on after tough quarters, and Ipsidy has announced the next step in its leadership transition.

Hikvision revenue grows and profit steady

Hikvision has announced impressive 11.53 percent growth on a year-over-year basis in its earnings report for the third quarter of fiscal 2020, with revenue of RMB 17.75 billion (US$2.66 billion).

Net profit during the quarter was RMB 3.81 billion ($571 million), for a much more modest YoY gain of 0.12 percent.

For the first three quarters of fiscal 2020, Hikvision reports total revenues of RMB 42.02 billion ($6.29 billion) and net profits attributable to shareholders of RMB 8.44 billion ($1.26 billion), both up between just over 5 percent compared to 2019.

The company calls its growth “solid” amid the “unusual” circumstances of the first three quarters, socially and economically, and says it will continue optimizing it operations, innovating, and working with partners to overcome market uncertainties.

Patriot One announces first full-year results since commercial launch

In its fiscal fourth quarter, Patriot One has reported $400,000 in revenues, and $2.1 million for the year, with the commercial launch of its products.

The fourth quarter saw the release of Patriot One’s PATSCAN VRS-W, VRS-HS and VRS-T solutions for detection of weapons and other threats to public health and safety, and the Multi Sensor Gateway system, which is being deployed in multiple locations. The company did not earn any revenue in 2019.

Operating loss for the year was $23.4 million, compared to $17.6 million for the year ended July 31, 2019. Part of that increase was due to the acquisition of artificial intelligence company Xtract Technologies, which has since singed a contract with Canada’s Department of National Defense.

“The key focus this year has been the de-risking the Company’s technology for full commercial release,” shares Martin Cronin, Patriot One’s CEO. “Like many corporations around the world, it has been challenging for Patriot One to service our customers since the onset of the COVID-19 global pandemic which began in March 2020. Instead, the Company has taken this opportunity to use its existing capabilities to provide solutions to assist other businesses safely re-open. The Company has identified opportunities to service public and private sectors with technology solutions to mitigate the risks of this pandemic, and other possible threats to business continuity and public health. In addition, we began transitioning to an experienced C-Suite with skills in growing startups, while also expanding our sales and operations teams to scale quickly as we move beyond trial deployments to full scale operations.”

The leadership transition Cronin refers to also includes him stepping down as CEO.

CyberLink net income falls 38 percent over first three quarters of 2020

CyberLink has announced revenue through the first nine months of its 2020 fiscal year of just over NT$1.2 million ($41.9 million), with a 38.1 percent decrease in net income to NT$178.19 million ($6.2 million) and a corresponding 38.4 percent dip on a year-over-year basis in earnings per share after tax to NT$2.12 ($0.07).

The company recently reached a partnership deal with MediaTek to bring support for its FaceMe biometrics to the latter’s chips for IoT devices.

OneSpan reports amid transition to recurring revenue model

OneSpan’s third quarter revenue similarly declined by 35 percent to $51.4 million, with recurring revenue falling off by 5 percent to $22.1 million but annualized recurring revenue growing by 27 percent to $95.7 million as the company transitions its remote bank transaction authentication business model.

“In the third quarter, we continued to make progress transitioning to a recurring revenue model, with annual recurring revenue growth of 27 percent, dollar-based net expansion rate of 120 percent, and sequential improvement in Software and Services bookings. Rapidly deployable digitization projects such as e-signature continued to see strong demand” stated OneSpan CEO, Scott Clements.

Clements also says OneSpan’s pipeline of software and service sales opportunities grew by more than 40 percent year-over-year.

Despite the tumble in Q3 revenue and a similar decrease in gross profit, OneSpan’s nine-month gross profit was $113 million, down only slightly from $122.4 million in the first three quarters of 2019. The company booked an adjusted EBITDA of $2.7 million, and a GAAP loss per share of $0.04 in Q3.

OneSpan anticipates total revenues for the year between $203 and $207 million.

CEO Kumnick replaces Beck as Ipsidy Chairman

Ipsidy has announced the appointment of Phillip Kumnick as chairman of the company’s board of directors, replacing Philip Beck, who is retiring from the board.

Beck led the company as Chairman of the Board through a number of changes and milestones, according to the announcement, since taking the position at the beginning of 2017. These include rebranding it to Ipsidy from ID Global Solutions Corporation and preparing for its listing on the OTCQB market.

While with Visa, Kumnick was in charge of leading the payments giant’s acquirer processing services globally, and led its partnership with India’s government to integrate biometrics into the country’s payment infrastructure as part of the Aadhaar initiative.

Kumnick recently discussed taking over in May as pandemic lockdowns proliferated across America, as the company’s CEO with Biometric Update.

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