Precise Biometrics sees brightening outlook after supply shortage
Figures show the impact of global supply chain issues and a clear uptick at the close of Q3 2021 for Swedish biometrics software developer Precise Biometrics. The firm has released its Q1-Q3 financial report showing earnings that are growing, along with full client retention and growth, but against a tough trading year. Developments since the trading period covered suggest better times ahead.
“Precise has generated a positive EBITDA through cost control and an agile work method during the ongoing component shortage that affected our customers in the third quarter,” wrote outgoing CEO Stefan K. Persson, ahead of a call to present the figures.
“The profitable Algo business provides the opportunity for continued investments in Digital Identity. Despite these investments and the fall in royalty revenues, we are reporting a positive result at EBITDA level of approximately SEK 1 million (US$114,000).”
However, compared to 2020, sales are down. 2020 Q1-3 saw 31.5 percent growth, while the same period for 2021 saw a 20 percent contraction. EBITDA for that period in 2020 was SEK 6.15 million (roughly $703,000), down to SEK 206,000 ($23,500) in 2021. But Q3 2020 was down to SEK 745,000 ($85,000) while this year the same quarter reached SEK 998,000 ($114,000).
Supply chain issues throughout Q3 affected royalty revenues from biometric algorithms. The CEO noted that, “While June and July were the months with the lowest order input for our customers so far this year, September was the month that performed best so far in 2021. This is a clear indication that the negative effects resulting from the component shortage are about to be phased out, and that there will be good opportunities in the future to return to previous volumes.”
The firm has doubled its SaaS annual recurring revenue to SEK 0.8 million ($91,000) compared to the same period last year. There is a zero percent churn rate for customers which the firm sees as a hallmark of the quality of its YOUNiQ product.
Since this trading period, Precise has announced the integration of their YOUNiQ product with the Integra security platform for access control, via a partnership with SystemHouse Solutions. Persson says Q4 has started off strong.
The report states that the firm is also looking at introducing fingerprint technology to cars for the personalization of settings
Precise has announced on Twitter that it has trademarked “YOU are the key” in the EU.
— Precise Biometrics (@PBiometrics) November 2, 2021
Stefan K. Persson, Precise Biometrics’ CEO, is stepping down and the firm is looking for a replacement in time for his notice period finishing at the end of March 2022.