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Precise Biometrics

Precise Biometrics

Read in Swedish

Increased client activity and promising growth in Digital Identity

08:00 / 12 May 2021 Precise Biometrics Press release

INTERIM REPORT FOR THE PERIOD JANUARY TO MARCH 2021

FIRST QUARTER

  • Net sales totaled SEK 20.3 (23.1) million.
  • EBITDA totaled SEK 0.0 (3.1) million.
  • The operating profit/loss totaled SEK -3.8 (0.1) million.
  • Earnings for the period totaled SEK -3.5 (0.3) million.
  • Earnings per share totaled SEK -0.01 (0.00).
  • Cash flow from operations totaled SEK -0.7 million (6.9).

SIGNIFICANT EVENTS DURING THE QUARTER

  • Collaboration with Sensative on the integration of YOUNiQ with Sensative’s Yggio platform
  • Commercial agreement with Clarkson University on the installation of YOUNiQ in the business incubator North Country Incubator. This installation is the first one in the USA.
  • Installation of YOUNiQ at Science Village in Lund, a city district in northeastern Lund, which includes MAX IV and the European Spallation Source (ESS).
  • Integration of Precise’s fingerprint technology in the next generation of ultrasound-based fingerprint sensors from Qualcomm – successful implementation in the Meizu 18 smartphone

SIGNIFICANT EVENTS AFTER THE END OF THE INTERIM PERIOD

  • MasterCard Vendor Letter of Approval for smart payment card from KONA I with Precise’s fingerprint technology
  • First installation of YOUNiQ in Norway together with RCO, a leading company within access control systems

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

KEY INDICATORS

2021 2020 2020 Rolling
  Q1 Q1 Full-Year 12 mth
Net sales 20 312 23 065 92 349 89 596
Net sales growth, % -11,9% 89,9% 0,5% -12,9%
EBITDA 22 3 060 6 862 3 825
Gross margin, % 77,4% 87,7% 84,2% 81,8%
Operating profit/loss -3 812 148 -5 792 -9 752
Operating margin, % -18,8% 0,6% -6,3% -10,9%
Cash flow from the operating activities -660 6 935 21 792 14 197
Cash and cash equivalents 70 408 78 399 76 258 70 408

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 (CEST), May 12.

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

https://financialhearings.com/event/13403

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: +46856642705
UK: +443333009267

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
Ulrik Nilsson, CFO

CEO COMMENTS
We saw increased volatility in our market for mobiles in the first quarter of 2021. The component shortage affected our customers’ volumes, which has decreased our royalty. We have continued to win projects together with our customers, which resulted in revenues of SEK 20.3 million and a positive result at EBITDA level. Through continued investments in the field of Digital Identity, we are broadening our offering in order to be able to reduce our dependency on revenues from the mobile side in the future, putting us in an even more stable position.

Our focus has always been on innovation and pushing the boundaries for biometric identification. We are constantly developing our technology so that we are always one step ahead of our competitors. During the quarter, our fingerprint technology was integrated into the next generation of sensors from Qualcomm, which was in turn implemented in the Meizu 18 mobile – a combination that has resulted in the world’s fastest fingerprint matcher. This is confirmation that our efforts are producing results and that our technology is leading the way when it comes to technical performance.

We have continued to take important steps in the commercialization of YOUNiQ in the access application area. Growth continued during the first quarter, albeit from low levels, which indicates the success of our scalable SaaS model. The customer base has been extended with new customers, including the Science Village in Lund, a city district including MAX IV and European Spallation Source (ESS) and we have also completed our first installations in the US and Norway.

More and more of our existing and potential customers in the field of access are demanding solutions that save energy and reduce CO2 emissions. Furthermore, an increasing amount of regulation of standards are being introduced for energy-efficient buildings and access solutions. These are important driving forces that promote demand for YOUNiQ, which has, through its digital nature, the opportunity to create significant climate benefits compared with traditional access solutions. Not only does YOUNiQ eliminate the needs for plastic cards, keys and tags – saving unnecessary emissions in connection with production, transport and administration – it is also possible to link the system to manage more than access control; heating and lighting systems can also be automated and digitalized via YOUNiQ. During the quarter we therefore initiated a pilot project together with one of our customers, with the aim of reducing unnecessary electricity consumption and high costs – for a more sustainable society.

By combining mobile and smart cards in the Algo product area, we are preparing the company for our next growth phase. This combination will result in more efficient resource utilization in our development activities and sales organization.

In summary, it has been an eventful first quarter, one in which we continued to win projects in the mobile business, despite increased volatility in the market, and there was important progress in YOUNiQ. Uncertainty as a consequence of Covid-19 and its impact on supplies of components remains, and predictability is still limited as we look ahead. Our response to the current market situation is that we will continue working to increase the gap to our competitors and secure our position as the preferred supplier of identification software in which you are the key.

Stefan K. Persson, CEO

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