Fingerprint Cards AB

Year-End Report January – December 2020

Highlights of the quarter

• SEK 340.6 M in non-cash write-downs, whereof SEK 267.7 M attributable to the Delta ID acquisition.
• Volume order for one hundred thousand T-Shape sensor modules from top-three card manufacturer.
• Design win from a top-tier global PC manufacturer.
  
  

Fourth quarter of 2020

• Revenues amounted to SEK 369.4 M (381.4)
• The gross margin was 24 percent (23)
• EBITDA totaled SEK 32.4 M (13.3)
• SEK 340.6 M in non-cash write-downs
• The operating result was negative SEK 326.8 M (neg: 15.3)
• Earnings per share before dilution were negative SEK 1.02 (neg: 0.06)
• Cash flow from operating activities amounted to SEK 46.9 M (82.4)

January-December 2020

• Revenues amounted to SEK 1,255.7 M (1,458.6).
• The gross margin was 22 percent (23)
• EBITDA totaled SEK 59.4 M (128.7)
• SEK 340.6 M in non-cash write-downs
• The operating result was negative SEK 365.8 M (neg: 14.4)
• Earnings per share before dilution were negative SEK 1.10 (neg: 0.04)
• Cash flow from operating activities amounted to SEK 158.1 M (160.4)
• The Board proposes to the Annual General Meeting that no dividend be paid for the 2020 fiscal year

CEO’s comments

In constant currency terms, revenue increased by 7 percent compared to the same period last year. We also increased our revenue compared with the preceding quarter, driven by continued healthy demand for our products, while our access to production capacity among the major semiconductor manufacturers also improved somewhat. A more favorable product mix, with a higher share of new products, contributed to improving the gross margin during the quarter. The result in the quarter was impacted by SEK 340.6 M in non-cash write-downs, whereof SEK 267.7 M is attributable to the acquisition of Delta ID, and the rest to R&D project and patents in the under-display area. Our positive view of the potential in iris recognition is unchanged, but we have made the assessment that future cash flows may be somewhat delayed, partly due to effects related to the corona pandemic. The main reason for the write-downs in under-display is the fact that average selling prices (ASP) have decreased significantly. In other respects, we have an unchanged positive view of the potential in the under-display area. Our underlying operating profit, adjusted for write-downs, was positive and amounted to SEK 14 M. Our liquidity is good, with net cash holdings of SEK 354 M as at December 31, 2020.