Highlights, fourth quarter
- Ten percent constant currency revenue increase
- Transformation plan execution commenced
- Diversification - sales to the PC sector increased by two-thirds
- Cost optimization program initiated; OPEX includes
SEK 37.5 M attributable to restructuring measures
Fourth quarter of 2023
- Revenues amounted to
SEK 200.3 M (190.3) - The gross margin was 9.5 percent (8.8)
- EBITDA amounted to negative
SEK 83.8 M (neg: 74.3) - Adjusted EBITDA amounted to negative
SEK 46.3 M (neg: 74.3) - The operating result was negative
SEK 105.2 M (neg: 527.3) - Earnings per share before and after dilution amounted to a negative
SEK 0.22 (neg: 1.48) - Cash flow from operating activities was negative
SEK 60.4 M (neg: 103.9)
January-
- Revenues amounted to
SEK 705.4 M (861.8) - The gross margin was 12.7 percent (19.3)
- EBITDA amounted to negative
SEK 242,2 M (neg: 116.0) - Adjusted EBITDA amounted to negative
SEK 204.7 M (neg: 116.0) - The operating result was negative
SEK 320.4 (neg: 631.0) - Earnings per share before and after dilution amounted to a negative
SEK 0.74 (neg: 1.92) - Cash flow from operating activities was negative
SEK 88.3 M (neg: 334.1) - The Board proposes to the Annual General Meeting that no dividend be paid for the 2023 fiscal year
CEO’s comments
Execution of our Transformation Plan
As announced in our previous interim report, we commenced execution of our Transformation Plan during Q4, including cost optimization, profitability, organizational changes and strategy evolution. Accordingly we began to see initial signs of transformational impact. We saw a modest gross margin improvement compared to the corresponding quarter last year, and fully expect improved profitability going forward as we focus our capital and investments outside of Mobile sensor hardware, in our higher-margin existing lines of business along with new diversification areas. As highlighted in our last report, gross margin in the Mobile product group is unsustainably low. The negative outlook for Mobile looks set to endure, along with ongoing geopolitical risks, further reinforcing the need for this transformation plan.
The cost optimization program is progressing according to plan, and we incurred
We also made some important organizational changes during the quarter, transitioning to a functional organizational model and appointing world-class talent. This focus enables the timely execution of our pivot from a mobile biometrics component provider to a broader biometrics platform player.
Revenue growth and continued diversification
I’m pleased that revenue grew by 5 percent in the fourth quarter compared to the corresponding period last year and by 8 percent sequentially (both of which were an increase of 10 percent on a constant currency basis). This increase was driven by higher sales in our Mobile and PC product groups as well as in our Access business outside of
At the same time, we are already seeing our diversification bets start to bear fruit. PC is showing a reliable growth and profitability profile, delivering considerably higher gross margin than Mobile. Biometric solutions for PCs have quickly emerged as an important new product area for Fingerprints, and we anticipate continued market growth since the share of computers with fingerprint sensors is expected to continue rising and our premium offering is valued. We also made significant progress in further enhancing our highly competitive offering to PC OEMs by launching our newly developed, complete biometric system for PC makers in
In terms of other elements of our platform portfolio, Access, whilst project driven, has shown a consistent growth trend, with more opportunities to unlock, particularly in logical access – a huge new market in which we have great value to offer as an incremental near-term opportunity. I’d also like to highlight our assets in touchless solutions including our iris recognition software. We see an increased interest in our iris authentication solution, both in relation to Driver Monitoring Systems (DMS) where IR-cameras will be added in most cars, as well as iris authentication in relation to AR/VR devices, triggered by the launch of the Apple Vision Pro device where authentication is made by an iris solution called Optic ID. Regarding DMS, we announced an agreement with a tier 1 automotive supplier in
Today at
The report will be available at fingerprints.com
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For information, please contact: Per Sundqvist, CFO +46(0)10-172 00 10 investrel@fingerprints.com Press: +46(0)10-172 00 20 press@fingerprints.com This is the type of information that | |
About Fingerprints We believe in a secure and seamless universe, where you are the key to everything. Our solutions are found in hundreds of millions of devices and applications, and are used billions of times every day, providing safe and convenient identification and authentication with a human touch. For more information visit our website, read our blog, and follow us on Twitter. Fingerprints is listed on Nasdaq Stockholm (FING B). |
Attachment
- Interim report Q4 2023
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