Fingerprint Cards AB (publ) publishes year-end report for January – December 2023

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-December 2023

• 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.