Biometrics stock wrap: Precise, Fingerprint Cards, Telos, CPC
Precise Biometrics has reported modest results for full-year 2021 and optimism for the year ahead, while Fingerprint Cards prepares to issue bonds on the Nasdaq Stockholm. A legal dispute has broken out between Telos and a shareholder, meanwhile, and CPC updates its fight with Apple.
Precise Biometrics upbeat after revenue dip
Precise Biometrics booked SEK 83.3 million (approximately US$8.9 million) in revenues during 2021, a 9.8 percent decrease from the year before, according to otherwise upbeat earnings announcement for what the company’s CEO calls “an eventful year.”
The company’s biometric software as a service approach has yielded an annual run rate, however, of closer to SEK 13 million, according to Precise CEO Stefan K. Persson.
In Precise’ fiscal fourth quarter of 2021, ending December 31, 2021, the company reports revenues of SEK 27.4 million ($2.9 million), up 22 percent from the same quarter in 2020. EBITDA was SEK 1.9 million ($200,000) for the year and nearly SEK 1.7 million ($180,000) for Q4, 2021.
Among highlights during the quarter, Precise acquired EastCoast Solutions to accelerate its digital identity business area, and the company also booked licensing agreements to supply its Biomatch solution for automotive biometrics.
“As in the first nine months of 2021, the fourth quarter was also characterized by a continued component shortage among our customers, which had a negative impact on royalty revenues in Algo,” says Persson. “We were also burdened by an increase in administrative costs attributable to the acquisition of EastCoast. Despite this, we achieved an EBITDA of SEK 1.7 (0.7) million, primarily resulting from two new customers in the automotive industry, as well as the acquisition of EastCoast, which delivered its best month of the year in December. By gradually broadening Algo into new applications based on fingerprint recognition and continuing to focus on growth in Digital Identity, we are securing a long-term profitable business.”
Following the conclusion of Precise’s 2021 fiscal year, the company announced Persson is leaving his position at the end of February, with Patrick Höijer taking over as CEO effective June 1, 2022.
“It has been a strong conclusion to an active and eventful year in which we continued to accelerate in Digital Identity while at the same time expanding the application areas in Algo,” Persson continues. “I would like to thank our shareholders, partners and employees for having been part of this Precise journey thus far. I am convinced that my successor will continue to advance the company’s positions as a leading global provider of identification software in which YOU are the key.”
FPC launching bonds to Nasdaq Sweden, next-gen side-mounted sensor implemented
Fingerprint Cards has applied to list corporate bonds on the Nasdaq Stockholm, and to that end published a prospectus which has been approved by the Swedish Financial Supervisory Authority.
The company has issued senior secured bonds in the amount of SEK 300 million ($32 million), with a three-year tenor and a floating interest rate based on Stibor over three months plus 9 percent per annum, under a framework of SEK 500 million ($533 million).
The new Redmi K50 from Xiaomi features Fingerprint Cards’ FPC1552 second-generation curved, slim capacitive biometric sensors. It is the first implementation of the second-generation side-mounted sensor.
“We’re excited to have established a new segment of capacitive fingerprint sensors for smartphones, where our innovative technology is powering the latest designs. Yet again we’ve been chosen by Xiaomi and continue our strong and long-term relation with an industry leader,” says Ted Hansson, president of Mobile, PC and Access China at Fingerprint Cards.
Telos shareholder alleges misleading guidance
Lawfirm Robbins LLP has filed a potential class action lawsuit on behalf of an investor in Telos Corporation, alleging that the company misled shareholders between November 2020 and November 2021.
The law firm says Telos misrepresented the timing of contracts for its enterprise digital identity service suite, IDTrust360, and that those contracts were expected to generate significant revenue.
Telos said the contracts would generate more than $135 million in revenues in 2021 and 2022, according to the announcement.
Charter Pacific claims procedural victories in Apple dispute
Apple voluntarily dropped a motion to dismiss a complaint that it infringed three CPC patents, United States District Judge Alan D Albright denied a motion to transfer the case from West Texas to California, and the Western District of Texas Court allowed claims to move ahead.
CPC Patent Technologies sued Apple in early-2021.