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Fingerprint Cards anticipates bounce-back in smartphone biometrics revenues in 2023

Fobi raises funds, BIO-key on notice
Fingerprint Cards anticipates bounce-back in smartphone biometrics revenues in 2023

Depressed demand for smartphones in China during the fourth quarter of Fingerprint Cards’ fiscal 2022 weighed down the company’s sales and gross margins, though the company sees a bounce-back ahead this year.

Fingerprint Cards reports earnings of SEK 190.3 million (approximately US$18.4 million) in Q4, and gross margins of 8.8 percent, well down from SEK 365.6 million and 31.7 percent in the same period of 2021. EBITDA swung from SEK 26.7 million ($2.6 million) a year ago to negative SEK 74.3 million ($7.2 million) for the quarter.

Full-year results similarly declined, with revenues down 36 percent to SEK 861.8 million ($ million) and corresponding drops in margins, EBITDA, and operating profit for calendar 2022.

Sales and margins were actually higher in Q4 than Q3, however, prompting some optimism from the company.

Acting President and CEO Ted Hansson says Fingerprint Cards expects its sales to China’s smartphone market to rebound in 2023, if not fully. A volume sale of the company’s under-display biometric solution and anticipated growth from its PC business in both the short and long term are further reasons for optimism.

“Together with PC and under-display sensors for mobile phones, the Access area is the one we assess will grow the fastest over the short term,” states Hansson. “It is therefore a priority area as regards R&D investments over the coming year. Together with PC, Access currently accounts for the largest share of our revenue outside of our traditional operations in China in capacitive fingerprint sensors for mobile phones. Under-display sensors for mobile phones, and our operations in Payment, are also part of these new areas. Our operations outside of capacitive sensors for mobile phones accounted for just over 30 percent of sales in the fourth quarter, and we estimate that this share will increase to around 45 percent at the end of 2023.”

Hansson also says that with Fingerprint Cards technology now in ten commercial launches of biometric payment cards around the world, the payments segment “represents a considerable potential market and is an important area of long-term growth.”

Fobi raises over $600K in private placement

Fobi AI has closed a non-brokered private placement just under a year after its move into digital ID with AltID.

AltID is a digital identity verification service that uses selfie biometrics.

The company booked aggregate gross proceeds of $826,690 (roughly US$620,000) by selling just over 4.7 million units at $0.175 each. The units consist of a common share, plus purchase warrant for a further half-share. Each warrant is worth a common share purchase at $0.30 any time until January 24, 2025.

Participants in the round include the company’s CEO and COO, along with an unnamed strategic investor.

The funds will be used for general and corporate working capital, according to the announcement.

Nasdaq puts BIO-key on notice for minimum bid price

BIO-key stock has spent 30 days below the Nasdaq’s $1.00 minimum bid price requirement, prompting a notice that it has 180 days to regain compliance.

The company has until July 11, 2023 to regain the minimum price or receive an extension.

“We are confident in the global outlook for BIO-key in 2023, as well as our ability to regain listing compliance according to the Nasdaq guidelines,” says BIO-key Chairman and CEO Mike DePasquale. “Our enthusiasm is based on our growing annual recurring SaaS license and maintenance revenue along with our expanding pipeline of additional customer opportunities.”

The company’s opportunities are boosted by recently-formed partnerships to sell its IAM and biometric products in Southeast Asia, and with a U.S. government supplier.

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