Precise Biometrics Reports Wider Loss in First Results Since Fingerprint Cards Merger

Precise Biometrics published its second-quarter report on Wednesday, the first since it absorbed Fingerprint Cards. The figures exclude the acquired business, because the merger completed after the quarter closed.

Net sales for the quarter came to SEK 14.7 million, down from SEK 20.8 million a year earlier. EBITDA swung to SEK -6.5 million from SEK -0.5 million, and the operating result widened to SEK -10.8 million from SEK -5.7 million. Earnings for the period were SEK -10.4 million, against SEK -5.8 million, or SEK -0.1 per share before and after dilution.

One-off items of SEK 1.8 million in the quarter were attributed to transaction costs for the merger. Stripping those out leaves adjusted EBITDA of SEK -4.7 million and an adjusted operating result of SEK -9.1 million. Cash flow from operations was positive at SEK 3.3 million, up from SEK 1.3 million, and annual recurring revenue stood at SEK 19.1 million against SEK 18.2 million.

For the first half, net sales were SEK 31.8 million against SEK 40.8 million, with EBITDA of SEK -7.9 million and an operating result of SEK -16.7 million. Merger transaction costs across the half came to SEK 3.8 million.

The merger and the capital raise that followed it both fall after the reporting period. Precise completed the Fingerprint Cards merger on July 20 and resolved on a rights issue the same day, then announced the outcome of that issue on August 13, raising SEK 100 million before transaction costs.

Chief executive Joakim Nydemark said the completed merger marks the beginning of a new chapter and that the company is focused on daily business and on executing the integration while realising identified synergies. “While parts of the mobile market remain challenging in the near term, we continue to see positive development in our strategic growth areas and strong long-term demand for secure biometric identity and access solutions,” he said.

Precise is listed on Nasdaq Stockholm under PREC and is headquartered in Lund, with offices in France, the United States, China, India, Japan and South Korea. In June the company reported a palm recognition false accept rate beyond one in 100 million.

Sources: Precise Biometrics

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By the ID Tech Editorial Team