Press the button and be introduced to a new random company!

Introduce me >

Social media

facebook   Follow us on Twitter

Coverage

Precise Biometrics

Precise Biometrics

Read in Swedish

Accelerating Digital Identity and a brighter market outlook

08:00 / 12 November 2021 Precise Biometrics Press release

INTERIM REPORT FOR THE PERIOD JANUARY TO SEPTEMBER 2021

THIRD QUARTER

  • Net sales totaled SEK 16.9 (23.2) million.
  • EBITDA totaled SEK 1.0 (1.1) million.
  • The operating profit/loss totaled SEK –3.0 (–2.2) million.
  • Earnings for the period totaled SEK –2.9 (–2.2) million.
  • Earnings per share totaled SEK –0.01 (–0.01).
  • Cash flow from operations totaled SEK –2.4 (0.5) million.

INTERIM PERIOD

  • Net sales totaled SEK 55.9 (69.9) million.
  • EBITDA totaled SEK 0.2 (6.2) million.
  • The operating profit/loss totaled SEK –11.4 (–3.2) million.
  • Earnings for the period totaled SEK –11.0 (–3.3) million.
  • Earnings per share totaled SEK –0.03 (–0.01).
  • Cash flow from operations totaled SEK –4.6 (9.7) million.

SIGNIFICANT EVENTS DURING THE QUARTER

  • Successful integration of YOUNiQ with ASSA ABLOY ARX.
  • First installation of YOUNiQ in Germany for access to facilities.
  • Collaboration with Doro to develop innovative solutions in the field of welfare technology.
  • CEO Stefan K. Persson announced that he has decided to leave his position to pursue new challenges outside the company. The recruitment process for a new CEO is under way.

SIGNIFICANT EVENTS AFTER THE END OF THE INTERIM PERIOD

  • Successful integration of YOUNiQ with the security platform Integra.

FINANCIAL DATA AND KEY INDICATORS
Amounts in SEK thousands unless otherwise stated

KEY INDICATORS


2021 2020 2021 2020 2020 Rolling
Amounts in SEK thousands unless otherwise stated Q3 Q3 Q1 - Q3 Q1 - Q3 Full-Year 12 mth
Net sales 16 905 23 175 55 885 69 855 92 349 78 379
Net sales growth, % -27,1% -15,8% -20,0% 31,5% 0,5% -27,9%
EBITDA 998 745 206 6 159 6 862 910
Gross margin, % 76,4% 79,8% 75,7% 84,1% 84,2% 78,3%
Operating profit/loss -2 972 -2 187 -11 380 -3 167 -5 792 -14 005
Operating margin, % -17,6% -9,4% -20,4% -4,5% -6,3% -17,9%
Cash flow from the operating activities -2 361 480 -4 649 9 681 21 792 7 462
Cash and cash equivalents 55 658 71 294 55 658 71 294 76 258 55 658

See the Financial Glossary for definitions.

INVITATION TO PRESENTATION OF THE INTERIM REPORT

In connection with today’s interim report, Precise invites investors and the media to an informational conference call.

The conference call starts at 10:00 AM (CET), November 12.

Link to all public information such as link to webcast and participant number for the telephone conference:

https://financialhearings.com/event/13405

To take part, click on the link above to listen to and follow the presentation online, or call one of the following numbers to follow by phone.

SE: +46851999383
UK: +443333009034
US: +16467224956

You will be asked to state your name when you connect to the conference call, and there will be an opportunity to ask questions in Swedish. The conference call will be held in English.

Participating on behalf of Precise:
Stefan K Persson, CEO
Annika Freij, CFO

CEO COMMENTS

Precise has generated a positive EBITDA through cost control and an agile work method during the ongoing component shortage that affected our customers in the third quarter. The profitable Algo business provides the opportunity for continued investments in Digital Identity. Despite these investments and the fall in royalty revenues, we are reporting a positive result at EBITDA level of approximately SEK 1 million.

During the quarter, there was continued disruption in the supply chains and a shortage of components, which affected royalty revenues within Algo. We did, however, see clear improvements at the end of the quarter. While June and July were the months with the lowest order input for our customers so far this year, September was the month that performed best so far in 2021. This is a clear indication that the negative effects resulting from the component shortage are about to be phased out, and that there will be good opportunities in the future to return to previous volumes. We have also seen a high level of activity in other applications within Algo that can open up new business opportunities for Precise. Among other things, we have a number of pilot projects under way involving the personalization of settings in cars through fingerprint technology.

We continue to grow our recurring revenue in Digital Identity. Our SaaS model means that we now have an ARR (annual recurring revenue) of SEK 0.8 million, corresponding to a doubling compared with the same period the previous year. Our churn rate, i.e., the rate of customer losses, remains zero, which is partly a hallmark of quality for YOUNiQ, and partly an understanding that facial recognition as a biometric modality is perfect for access. We have several cases of upsales through additional installations with our partners, including Algeco, where the need for secure and convenient access is growing in line with their journey of expansion.

It is important that YOUNiQ works together with other systems, which is why it was developed from the outset as an open system in order to achieve the best possible scalability. During the quarter, we continued to take important steps in the commercialization of YOUNiQ, signing partnership agreements with various platform suppliers in accordance with our growth strategy. The partnership with SystemHouse Solutions means that YOUNiQ can now be offered to all their customers, including Bravida, which in turn constitutes a major potential sales channel. We continue to identify and work in close collaboration with selected partners, with YOUNiQ supplementing our partners’ product ranges with convenient and secure identification through facial recognition.

The partnership with Doro is an additional initiative that expands the area of application for YOUNiQ, while at the same time contributing to the benefit of society. This provides value for senior citizens in care homes who may struggle when handling keys and cards, as well as safety and peace of mind for relatives and care staff. We are also continuing to grow in the area of modular buildings, and will be working together with Algeco to install YOUNiQ to control electricity and heat consumption. The project will be evaluated during the winter months, so that the solution can be implemented on a bigger scale in the event of a positive outcome. Together with partners such as Doro and Algeco, we continue to drive the development of modern solutions that contribute to safer, more sustainable communities.

The fourth quarter has started strongly, with high levels of activity continuing in all verticals. The strong market development we saw in September has continued, and we look forward with confidence to the conclusion of an eventful 2021. With strong underlying profitability that is being reinvested in growth, I look forward to continuing to advance our positions as a leading global supplier of identification software in which you are the key.

Stefan K Persson, CEO

Show as PDF

MFN

This information was distributed by MFN https://www.mfn.se/