Fingerprint Cards announces new partnership

Fingerprint Cards AB is a Swedish technology company, which develops, produces and markets biometric technology. This technology is capable of matching an individual’s unique fingerprint through analysis and verifies the person’s identity. The technology consists of biometric sensors, processors, algorithms and modules that can be used separately or combined.

Figures for Q2 and H1

FPC reported sales for the second quarter of SEK 823 million (USD 100 million), a 50 percent decrease compared to the second quarter 2016. Gross Profit even declined by 63 percent to SEK 300 million (USD 36.5 million) YoY. Total sales are estimated to exceed SEK 4.3 billion for 2017. However, this is still a 34 percent decrease compared to the sales figures of the previous year (SEK 6.6 billion).

Analysts from Handelsbanken Capital Markets expect the adjusted EBIT margin to stabilize in the second half (951 million in 2017) and further grow to 25 percent in 2018 (1.35 billion) and 26 percent in 2019 (1.48 billion).

New partnership with Qualcomm

FPC and Qualcomm have agreed to enter into a new partnership that will see the latter integrate FPC capacitive sensors into its low- and mid-tier Snapdragon microprocessors for mobile devices.

In particular, Qualcomm’s Snapdragon microprocessors will integrate FPC1028 touch sensors. FPC described the FPC1028 as “the mobile industry’s smallest and most affordable fingerprint sensor optimized for front and rear integration, thereby supporting flexible industrial design.”

FPC CEO Christian Fredrikson said FPC’s management expects it to “rapidly increase the fingerprint sensor attach rate in low- and mid-tier mobile devices worldwide.” Further on, FPC commented that it has been successful in regaining share at some of its largest accounts, such as Oppo, Huawei and Xiaomi.

FPC AB quotes with a P/E of 10.07 at around SEK 35.2 (July 25th 2017). 1 Analyst values the stock with BUY, 4 with HOLD and 2 with SELL. The consensus target price is set at SEK 28.9 . However, the future development remains to be seen.

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