Next recovers biometric hardware in dispute, takes hit in 2024 restatement

Next Biometrics has weathered “a perfect storm” made up of multiple “very severe” challenges, according to CEO Ulf Ritsvall. The company’s latest earnings report shows a huge inventory of fingerprint devices and internal optimism as it seeks to rebound.

The security incident behind Aadhaar’s new rules for fingerprint biometrics disrupted Next’s sales not just in India, but also in Africa, South-East Asia and South America, Ritsvall says. Sales are normalizing now, but Next has had trouble collecting from some distributors, one of two contributing factors behind the company restating its financial results from 2024.

More of the accounting irregularities in China that caused Next to restate its financials from the second half of 2024 have also been found. Next has now restated its 2024 revenues as 19.7 million Norwegian kroner (US$1.9 million), instead of the NOK 59 million it reported in August. The company’s overall 2024 loss after taxes was restated from NOK 45.2 million ($4.4 million) originally to NOK 54.1 million ($5.3 million) after August’s adjustment, and now NOK 75.1 million ($7.4 million).

Next said in its Q2 report that it planned to “repossess the products” related to the irregularities, and now says it has recovered a portion amounting to NOK 3 million-worth, which appear to be in good working order. The company is confidant it can recover the rest, but has not included them as assets yet.

In the meantime, the company’s sales and marketing partner in China has filed a claim against it.

Article Topics

biometrics  |  digital identity  |  financial results  |  Next Biometrics  |  stocks