Fingerprint Cards releases interim report
12 November 2020 15:07 GMT

Sweden's Fingerprint Cards has released an interim report for Jan-Sep 2020, saying that the demand for Fingerprints' sensors remained healthy, but earnings were negatively impacted by continued insufficient access to production capacity among the major semiconductor manufacturers.

Revenues amounted to SEK 294.0 M (US 24 M) in the third quarter, a drop on 352.5 in the last period last year, while EBITDA totaled SEK 8.7 M.

The operating result was SEK-4.6 M verus last year's loss of 3.4 M

Revenues from Jan-Sep amounted to SEK 886.3 M, while EBITDA totalled SEK 27.0 M. The operating result was negative SEK 39.0 M.

Highlights included a design win from a top-tier global PC manufacturer, with product launch planned for Q1 2021.

There was also the launch of next-generation T-Shape® sensor module for contactless biometric cards.

"While demand for Fingerprints' products remained healthy, our result in this quarter was again negatively impacted by the prevailing shortage of production capacity among the major semiconductor manufacturers", said Christian Fredrikson, President and CEO

"The limitations in our supply chain pushed up purchasing prices even further, which had a negative effect on the gross margin. At the same time, our continued focus on working capital and effective cost control contributed to strong cash flow for the quarter.

"Our assessment is that the situation of insufficient access to production capacity will continue in the short term, but we expect ongoing changes to our product mix to, over time, contribute to improved profitability. As communicated earlier, we are planning for significant volume growth in the next few years, mainly in prioritized areas outside of the mobile phone industry. For this reason, the work to continue to broaden our supplier base is very important and we have intensified our efforts to secure more suppliers of key components, within as well as outside of mainland China.

"Our ultrathin FPC1540 sensor, designed for side mounting, is reaping huge successes in the market, with several product launches during the period. These included phones from new customers, such as CAT Phones, Transsion and Vinsmart. We have recently seen a clear upswing in the market for capacitive sensors for smartphones. To date this year, approximately 60 percent of the smartphones launched by the ten largest manufacturers have a capacitive fingerprint sensor, while around 35 percent have an under-display sensor. Both capacitive sensors and under-display sensors are increasing somewhat, while we are seeing a decline in the share of devices without biometric sensors.