Fingerprint Cards revenue almost halves

Fingerprint Cards released its year-end report on Friday, reporting a fall in revenue to SEK 1.54bn (£130m) for the 12 months to 31 December, from SEK 2.97bn a year earlier.

The Swedish biometrics company said its gross margin plunged to 0%, from 33%, while its operating result swung to a negative SEK 771.6m from a positive SEK 154.6m a year earlier.

Earnings per share before dilution amounted to a negative SEK 2.01, also swinging from a positive SEK 0.38 in 2017.

Cash flow from operating activities amounted to SEK 274.6m, down from SEK 376.9m, with the board proposing to the annual general meeting that no dividend would be paid for the 2018 financial year.

On the operational front, Fingerprint Cards said it saw a “favourable” volume trend for its fourth-generation ‘FPC1511’ capacitive sensor product.

It said new areas outside capacitive sensors for mobile phones accounted for around 10% of sales, both in the fourth quarter and for the full year.

Net cash assets amounted to SEK 540.5m at period end, compared with SEK 454.9m a year earlier, although the company was now debt-free.

The firm said its consolidated equity-to-assets ratio was 77%, up from with 66% year-on-year.

Its cost reduction programs was reportedly executed according to plan, with operational expenditure now down by two-thirds from the highest 2017 levels.

“Fingerprints' strategy for the coming years is based on continuing to diversify and broaden the business into new areas outside the mobile segment, at the same time as defending and building on our strong position in the smartphone segment,” said Fingerprint Cards president and chief executive officer Christian Fredrikson.