NEXT Biometrics continues to rapidly scale its operations - the Norwegian biometrics company has now reived a new ordered to deliver its FAP20 fingerprint sensors. On May 23, 2023, NEXT announced a breakthrough deal with a new Asian distributor, which was structured as a three-year preferred supplier contract with a minimum volume commitment. NEXT has now received its first and initial stocking order relating to this contract.

The distributor's end-customers are targeting the China ID market with their products and the first customer plans for mass production in First Quarter 2024. NEXT's deliveries starts in Fourth Quarter and most of the stock is expected to be consumed by the end of First Quarter 2024. The previously communicated agreement with the Asian distributor has an estimated contract value of NOK 110 to 250 million over a three-year period.

The distributor plans to order volumes for a minimum of NOK 100 million. In accordance with the contract, NEXT has guaranteed to reserve production capacity for this customer of in total NOK 250 million over the three-year period. In the agreement, the distributor has granted NEXT an exclusive, preferred supplier contract to serve five of the largest and most prestigious fingerprint sensor customers in Asia.

Most of the distributor's five end-customers are already familiar with the NEXT's Active ThermalTM FAP20 fingerprint sensor. Joshua Chiu, Senior Vice President and Head of Sales, South-East Asia, at NEXT Biometrics. According to the terms of the contract, the three-year contract period will start from NEXT's first delivery.

The contract cannot be terminated before three years. After three years, unless terminated then, the contract is automatically extended for two years with the same terms.