Precise Biometrics Update Shows Downturn, With Opportunities Ahead

Precise Biometrics has issued its corporate update for Q4 of 2021 and for an “eventful year” in 2021, in the words of outgoing CEO Stefan K. Persson.

The biometrics specialist delivered some positive numbers for the fourth quarter. Revenues came in at SEK 27.4 million, compared to net sales of about SEK 22.5 million in Q4 of 2020. Its EBITDA was just over SEK 1.6 million, compared to SEK 0.7 million a year ago; while the operating loss was roughly the same, at SEK 2.69 million, compared to a loss of almost SEK 2.63 million the year prior.

Full-year results showed more negative trends. Net sales were down from about SEK 92.3 million in 2020 to SEK 83.3 million last year, and EBITDA shrank from SEK 6.86 million to SEK 1.87 million over the same period. Precise’s operating loss deepened from SEK 5.79 million to SEK 14 million.

Much of this was the result of ongoing supply chain disruption, with Persson explaining in a statement that Precise saw “a continued component shortage among our customers,” which had a negative impact on the company’s sales of fingerprint algorithm technology in particular.

Precise Biometrics’ acquisition of access control specialist EastCoast Solutions also put a strain on the company due to associated administrative costs. But Persson emphasized that it will be worth the investment, noting that EastCoast “delivered its best month of the year in December,” and framing it as part of a larger effort to expand business alongside new customer contracts in the automotive sector. “By gradually broadening Algo into new applications based on fingerprint recognition and continuing to focus on growth in Digital Identity, we are securing a long-term profitable business,” he said.

On that note, Persson added that Precise’s partnership with Infineon, established at the start of this year, will offer further inroads to the “many opportunities” in automotive sector going forward.

As for Persson himself, he will be taking the offramp, having given six months’ notice of his plans to depart the company last September. Precise recently found his replacement in Patrick Höijer, who will take the position no later than June 1, and announced that former Sales VP Fredrik Sjöholm will serve as acting CEO in the interim starting March 1.

“I am convinced that my successor will continue to advance the company’s positions as a leading global provider of identification software in which YOU are the key,” Persson said.

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February 18, 2022 – by Alex Perala