Precise Biometrics reports fall in profit, net sales rise
14 February 2017 16:29 GMT

Sweden’s Precise Biometrics has reported a rise in consolidated net sales to SEK 25.7 million (US$2.8m) in the fourth quarter, but a fall in operating profit before depreciation to SEK 3.8 million.

Last year, sales in the period only reach 23.5 million, but profit before depreciation (EBITDA) totaled SEK 6.7 million. Profit after tax also fell to SEK 2.7 from SEK 4.3 million a year before.

The quarterly figures contrasted with year-end figures also released today, which saw PB report an increase in consolidated net sales by 72.6% to SEK 97.2 (56.3) million, and a rise in operating profit before depreciation (EBITDA) improved to SEK 24.8 (0.5) million.

Despite the solid yearly figures, market focus has falled on the announcement that PB expects sales to its biggest client, Fingerprint Cards, to stop completely during the latter part of the year.

Although the company expects this  to be replaced by other clients, it has forecast flat 2017 revenue as a result.

“The final quarter of the year was another good quarter for the company. I am proud that in 2016 we succeeded in increasing net sales by 73%, delivering the company’s best year so far. Sales of our fingerprint software almost doubled during the year. We have led the company to profitability and are still only at the beginning of our journey,” said CEO Håkan Persson.

“Revenues from our biggest customer, Fingerprint Cards (FPC), continue to fall quarter on quarter in the mobile devices segment and is expected to cease completely during the second half of the year. We are in the final stages of several projects with other customers that are expected to start generating substantial volumes and revenues during the second half of the year, and these will compensate in full for the lost revenues from FPC,” he added.

Persson highlighted the importance of the company’s acquisition of NexID Biometrics, an anti-spoofing firm, last quarter.

“We acquired NexID Biometrics in the USA during the quarter. This acquisition is strategically important. By extending our product to include liveness detection, we can significantly improve the security of fingerprint authentication with a great user experience and meet customers’ demands for increased security, for reasons including the prevention of fraud”.

Also in the fourth quarter, PB signed Licensing agreements with the sensor manufacturers Samsung System LSI Business, a division of Samsung Electronics Co., Ltd., Image Match Design Inc., InvenSense Inc. and VKANSEE.