Fingerprint Cards AB (publ) publishes interim report for January – June 2024

Highlights

• 10.5-percent revenue growth vs. Q2 2023 in our Core product groups, outside of Mobile
• Gross profit in Q2 2024 negatively impacted by SEK 24.3 M in planned non-cash depreciation of previously capitalized R&D expenses. Gross margin excluding this effect was 25.4% (19.7% in Q2 2023).
• Rights issue in June strengthened the balance sheet
• Cost optimization progressed according to plan, with employees decreasing to 95 as at June 30, 2024, compared to 159 at the end of 2023
• Significant improvement in cash flow from operating activities vs. the first quarter of 2024
  
  

Second quarter of 2024

• Revenues amounted to SEK 112.4 M (203.3*)
• The gross margin was 3.7 percent (13.1)
• EBITDA amounted to negative SEK 2.4 M (neg: 57.7)
• Adjusted EBITDA** amounted to negative SEK 47.6 M (neg: 57.7)
• The operating result was negative SEK 90.8 M (neg: 75.7)
• Earnings per share before and after dilution amounted to a negative SEK 0.25 (neg: 0.18)
• Cash flow from operating activities was negative SEK 20.9 M (52.4)
  
  

January-June 2024

• Revenues amounted to SEK 258.8 M (320.3)
• The gross margin was 7.9 percent (14.7)
• EBITDA amounted to negative SEK 52.9 M (neg: 118.0)
• Adjusted EBITDA** amounted to negative SEK 98.1 M (neg: 118.0)
• The operating result was negative SEK 165.7 M (neg: 151.4)
• Earnings per share before and after dilution amounted to a negative SEK 0.41 (neg: 0.35)
• Cash flow from operating activities was negative SEK 81.0 M (10.1)
  
  

* Numbers in brackets refer to the year-earlier period
** EBITDA adjusted for costs related to restructuring measures, amounting to SEK 17.3 M in Q2 2024, and for other operating income amounting to SEK 62.5 M

CEO’s comments

In the second quarter, we continued to execute our Transformation Plan, focusing on lowering our cost base and reducing cash burn while stimulating growth in core markets. With personnel costs accounting for most of our operating expenses, the significant headcount reduction will result in meaningful cost savings in the latter half of the year. An important objective of our Transformation Plan is to achieve positive cash flow, and our actions have already translated into a significant improvement in cash flow from operating activities compared to the previous quarter.