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Precise Biometrics’ algorithms funding digital ID growth, Idex and Supercom report gains

authID.ai revises uplisting terms
Precise Biometrics’ algorithms funding digital ID growth, Idex and Supercom report gains

Precise Biometrics has reported strong revenues from its biometric algorithms, and plans to use them to fuel its growth in digital identity.

The company booked net sales of SEK 18.7 million (roughly US$2.2 million) in the second quarter of 2021, and SEK 39 million ($4.5 million) in the first half, the latter down from SEK 46.7 million ($5.4 million) in the first six months of last year. Precise’s operating loss was SEK 4.6 million ($530,000) in the quarter and SEK 8.4 million ($967,000) in the half, and earnings per share totalled negative SEK 0.01 in the quarter and SEK 0.02 in the half after coming in even for both Q2 and H1 2020.

Significant events for the company during the quarter include a step towards commercialization of biometric payment cards with its technology by partner KONA, and Precise has continued to make headway with its YOUNiQ digital identity and access control platform.

“We had revenues with high margins in the Algo product area, reflecting our strong market position. Our royalty revenues were, however, reduced by the component shortage. We are at the same time continuing to win important projects together with out key partners with BioMatch Mobile, which is being integrated into different ranges of smart devices from leading OEM manufacturers. Even if the component shortage continues, we have good prospects of returning to earlier volumes. In the field of Digital Identity, we saw strong growth and a significant increase in interest, and we continue to develop our sales channels,” comments Precise Biometrics CEO Stefan K. Persson.

“Strong profitability in Algo provides an opportunity for the internally financed development of Digital Identity. Resources are shared evenly between the two product areas, and with the continued growth in Digital Identity combined with the recovery within Algo, we are seeing that the company will achieve profitability. Following initiatives in Digital Identity, combined with the impact of the component shortage, EBITDA totalled SEK -0.8 million despite a fall in royalty revenues. Adjusted for initiatives in Digital Identity, we see strong underlying profitability in the company.”

Precise’s digital identity product area grew by 169 percent during the first half of the year.

The company has strong underlying profitability it is reinvesting in growth, Persson says.

Idex Biometrics’ Q2 revenues up 368 percent on year-over-year basis

Second quarter results for Idex Biometrics include revenues of $697,000, compared to $149,000 in the same quarter a year ago, a 368 percent increase, and 12 percent sequentially over its Q1 results.

Net loss for Idex totaled $7.2 million, or $0.01 per share, compared to a loss of $6.4 million or $0.01 per share in Q2 2020.

During the past quarter, Idex received its first significant production order for its TrustedBio biometric-system-on-chip from Idemia for use in its second-generation F.CODE cards, and Idex has since upgraded the solution to further lower costs, improve performance and ease manufacturing.

“I am pleased to report the Company’s order backlog continued its promising expansion, and I am confident the long-awaited uptake in fingerprint-based card authentication is approaching,” states Idex Biometrics CEO Vince Graziani. “In addition, recently announced commercial achievements and the strengthening of the Company’s leadership team are both important factors contributing to my confidence. Notably, IDEX Biometrics and Infineon Technologies AG, on July 15, jointly announced a new reference design for the highest performance smart card with fingerprint authentication. Based on Infineon’s latest secure element microprocessor, specifically optimized for integration of our TrustedBio solution, this reference design enables fingerprint-authenticated EMV payment card transactions that are three times faster than currently available solutions.”

The company also issued 8,880,100 incentive subscription rights to 103 new and continuing employees, including several primary insiders, as well as contractors.

Supercom books modest sequential gain

Supercom’s revenues increased slightly on a sequential basis from $3.03 million to $3.09 million in Q2 2021 as the company’s gross margin improved by 2.3 percent and EBITDA increased from $652,000 to $684,000.

The company has recently won a contract in Finland worth $3.6 million, and secured $5 million in financing to support its growth strategy since the quarter’s end.

CEO and President Ordan Trabelsi sees growth potential in Supercom’s remote monitoring solutions, some of which use biometrics, to reduce overcrowding in prisons and help with pandemic quarantine measures as the delta COVID-19 variant drives a resurgence in illnesses.

Terms of authID.ai uplist to Nasdaq revised

AuthID.ai has revised the terms of its planned $20 million Nasdaq uplisting to add 300,000 shares and lower the offer price from $11.03 each to $9.63, which is the price they closed at on the OTCQB exchange on August 3.

The revised terms valuate authID.ai at $267 million, a 14 percent reduction from its original terms.

The company recorded $2 million in revenue for the 12-month period ending June 30, 2021.

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