Last month we reported a strong set of results for Q3 delivered by focusing on delivering value to our clients through our vision of secure, convenient identification – no matter who you are, where you are and what you do. Stefan K. Persson, CEO of Precise shares some recent highlights and the areas for focus in Q4.
2020 has been an eventful year and Q3 proved to be no exception for us here at Precise as we continued to make inroads in Digital Identity. Digital services increasingly require accurate user identification however registration processes are often complicated and users choose insecure passwords, leading to security and customer experience frustrations. So demand is growing for safer and easier methods of verifying digital identity. As our world becomes increasingly more interconnected, we are also using our digital identity in multiple channels and on a number of different devices, amplifying the need for secure and effective identification. An example of where our digital identity product is delivering significant value is biometric access to buildings and premises, where growth is being driven by trends such as security, sustainability, technological development and regulation.
Precise YOUNiQ provides secure and convenient access to facilities thousands of times every day in more than 40 installations around Sweden, including temporary buildings, gyms and offices. Demand for our access product is increasing with interest from new customers and additional installations being requested from our existing customers as they experience the benefits first-hand. This has had a positive impact on our Net Sales with Q3 being in line with the previous quarter as expected and increasing by 31.5 percent for the interim period as a whole. I’m delighted with these results and I’m proud of the entire Precise team for this achievement . The increased income achieved during the interim period combined with good cost controls has resulted in a stable financial position for the company, enabling continued investments in our prioritized areas. Looking forward, we’ll be focusing the efforts of our strengthened sales force to seize the considerable opportunities available. In Sweden alone, we have identified an addressable market worth around SEK 1 billion by 2025. We are well positioned to embrace this opportunity and, along with our continued investment in Digital Identity, we are confident in our efforts to be the preferred supplier of identification software for secure and convenient identification.
The other areas of our business continue to perform strongly as well. As our Chief Financial Officer, Ulrik Nilsson says, “Our mobile business continues to generate a healthy profit and cash flow, keeping our cash position strong. We use the positive cash flow from mobile to fund our investments in growing Digital Identity. The business model for Digital Identity is a SaaS model and we continue to add new customers following our set strategy.”
In the Mobile area, we continue to see our product being integrated into devices from leading OEM manufacturers, such as Samsung. By taking greater responsibility for areas such as pre-processing we are additionally increasing our share of the value chain and strengthening joint positions together with our partners. There is still high demand for optical sensors, particularly in the medium and high-price segment, where we have a strong position.
Biometric Payment Cards continues to be an interesting area to watch and we are ready to capitalize on this market. As expected, none of the card issuers have produced these cards in any significant volumes yet but we are seeing some increased activity as a result of Covid-19. Banks are now preparing for commercial launches so we expect modest volumes to be produced over the next year.
In summary, it has been a good quarter and we’re excited for the opportunities that lie ahead for the remaining weeks of this year and in 2021!