Fingerprints shares down on sales dip
31 January 2018 15:06 GMT

Shares in the Swedish biometric firm Fingerprint have taken another hit following the release of lacklustre sales figures.

In its latest results, the company saw fourth-quarter revenue slump 62 percent on a drop in the smartphone segment.

The company now sees revenue in the three months ended December slumping 62 percent to 615.3 million kronor ($77.8 million), from 1.62 billion kronor a year earlier, according to a statement on Thursday. That compares with an average analyst estimate of 703 million kronor.

"The company estimates that the Chinese smartphone market has weakened further during the quarter and predicts that the company's revenues will remain weak during the first quarter of 2018," it said.

Fingerprint has faced both growing competition and pricing pressure for sensors for mobile phones, and weakening demand and inventory build-up among customers. 

“This is another confirmation that the market for fingerprint sensors has deteriorated and how hard it is to sustain margins above about 30 percent,” Carnegie said in a note to clients. “We expect there is further downside from here.”

FPC shares fell 30 percent in early trading in Stockholm and were down 24 percent at 0855 GMT.

Inge Heydorn, fund manager at Sentat Asset Management with no position in FPC shares, said he was not surprised by the profit warning due to the weak China market.

"I think the (handset) market has stopped growing. Fingerprint Cards' market is growing, but not as fast as the price is falling."