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Fingerprint Cards continues biometrics licensing run with $2.5M PC asset deal

Fingerprint Cards continues biometrics licensing run with $2.5M PC asset deal
 

Fingerprint Cards has signed a biometrics licensing agreement with Egis Technology for PC-related assets worth approximately 24 million Swedish kronor (US$2.5 million).

The move comes after the company discontinued its mobile and PC biometrics product lines, as it shifts to identity management and other segments. The Swedish biometric firm says that the contract will allow it to generate revenue from existing intellectual property while maintaining its focus on developing new authentication technologies.

“This agreement with Egis aligns well with our strategy to monetize and unlock value from existing IP assets,” says Adam Philpott, Fingerprint Cards CEO. “The cash infusion will further strengthen FPC’s balance sheet and enhance our financial flexibility.”

The company’s business transformation, including the move away from mobile and PC biometrics lines, was followed by a significant decline in revenues: In 2024, Fingerprint Cards posted revenues of $38.5 million, compared to $67.3 million a year ago. Recent results from Q1 of this year, however, showed progress with revenues doubling on a year-over-year basis, reaching $1.9 million with a 56.6 percent gross margin.

But the biometrics licensing deal is the third of the year for FPC, following an extension signed by Mantra Softech and an agreement with Smart Eye on iris biometric technology for civil identification and the automotive industry, respectively. The company signed up with an unnamed IP advisory firm to commercialize its biometric technology in early-2025.

The Nasdaq-listed firm expects to receive most of the payment from Egis in the third quarter of 2025. The deal also includes royalty payments based on Egis’s shipment volumes to PC manufacturers.

The arrangement expands an existing partnership between the two companies in the mobile sector. Last year, Fingerprint Cards signed a deal with Egis, allowing the Taiwan-based company to integrate its mobile product lines into its current mobile platforms.

At the time, Fingerprint Cards stated that while this partnership may not yield immediate financial gains, it will offer future revenue opportunities, including from development work associated with the licensed biometric solutions.

The company also announced that some of its mobile business employees would transition to Egis due to the wind down of its mobile business operations.

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