Fingerprint Cards today announced a revenue range for the third quarter. Revenues are expected to fall in the range of SEK 800-840 M, which is in line with the previous quarter.
As previously announced Fingerprints does not provide forecasts but chooses to disclose this information since the company considers that this level of revenues significantly differs from the expectations currently in the market.
Fingerprints is currently experiencing a cautious market and one contributing factor is Apple’s launch.
Distributors and module houses delivering to the company’s OEM-customers have therefore minimized their
inventory levels. In spite of this, Fingerprints estimates that the number of shipped sensors from the company during the third quarter will increase with around 40 percent compared to the second quarter.
The product mix has changed as most of Fingerprints larger OEM-customers have chosen to switch to backside mounted sensors that have a lower price. This has resulted in a decrease of the average selling price, ASP, of sensors, which has a negative impact on revenues. Fingerprints has previously communicated an ASPreduction exceeding 20% per annum, but the current rate is approximately 30%.
Fingerprints’ revenues have decreased because of the weakening of the US dollar. The company has yet not finalized the financial statements for the third quarter and therefore does not provide any forecast for other items in the balance sheet, income statement or cash flow statement. However, regarding the company’s costs and balance sheet items, no significant deviations from previously communicated assumptions are expected.
The company will present the report for the third quarter as planned on October 26.
Despite changing market conditions in the mobile segment, Fingerprints is still the market leader, has worldleading products and innovation capabilities as well as a strong cash position. Prerequisites for both growth and profitability are therefore favorable. Fingerprints views the introduction of low cost sensors as positive since it enables increased attach rate of within the smartphone segment and continued volume growth.
Due to the above, a telephone conference and a webcast will be held today at 09.30 CEST. The conference is
recorded and will be published on the website. Media, analysts and institutional investors are welcome to
connect to the conference call.
For participation in the conference call, please dial +46 (0) 8 5033 6434 (Sweden) or +44 (0) 1452 555566 (international participants). State conference ID 8716 0016 when dialing in and users should dial in 10 minutes prior to the conference call.
The webcast can be reached by all interested here.