FPC Q1 Report Shows Impact of COVID-19

Fingerprint Cards (FPC) has released a corporate report for the first three months of 2020. The company’s revenues for the quarter came to SEK 310 million (approximately $31 million USD), with an EBITDA of SEK 11.6 million (a little under $1.2 million USD).

FPC credited its success to recent advancements in its smartphone and access control portfolios. To that end, the company placed biometric sensors in several new smartphone models in the past few months, including the Realme X50 and the Moto G Power. The former boasts an FPC1540, while the latter has an FPC1520. As a result, FPC now controls a larger segment of the overall market for capacitive sensors in mobile phones than it did one year ago.

In the meantime, FPC upgraded its biometric software platform to support more access control applications, and released two new sensors designed specifically for the access market. The company also made inroads in the biometric payment space after entering into a global licensing agreement with FEITIAN. That agreement covers FPC’s biometric software, and includes a volume order for biometric sensors for biometric cards and other devices.

Despite those achievements, FPC’s overall revenues were lower than expected, thanks in large part to supply chain disruptions caused by the COVID-19 pandemic. The company indicated that things have improved as some of the restrictions have lifted in Asia, but nevertheless warned that high unemployment rates will reduce the demand for consumer devices like smartphones and adversely affect the company’s revenue projections moving forward.

Like other organizations, FPC has adjusted its work practices to protect the health of its employees during the pandemic, which has allowed the company’s R&D department to keep up with its various development projects. FPC is currently advocating for the mainstream adoption of biometric payment cards, which should enable higher payment caps for contactless transactions.

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May 4, 2020 – by Eric Weiss