- Net sales totaled SEK 23.6 (13.4) million.
- EBITDA improved and totaled SEK 2.0 (-4.1) million.
- The operating profit/loss totaled SEK -1.1 (-7.3) million.
- Earnings for the period totaled SEK -1.5 (-7.6) million.
- Earnings per share totaled SEK 0.00 (0.02).
- Cash flow from operating activities was strengthened and totaled SEK 2.3 (-1.1) million.
- Net sales totaled SEK 46.7 (25.6) million.
- EBITDA improved and totaled SEK 5.1 (-8.8) million.
- The operating profit/loss totaled SEK -1.0 (-15.1) million.
- Earnings for the period totaled SEK -1.2 (-15.5) million
- Earnings per share totaled SEK 0.00 (-0.04).
- Cash flow from operating activities was strengthened and totaled SEK 9.2 (-11.3) million.
SIGNIFICANT EVENTS DURING THE QUARTER
- Extended license agreement with leading provider of fingerprint sensors, Egis Technology. It is estimated that total revenues from Egis will be around SEK 60 million for 2020.
- A three-year agreement in respect of Precise YOUNiQ was signed with Temporary Space Nordics AB.
SIGNIFICANT EVENTS AFTER THE END OF THE INTERIM PERIOD
There have been no significant events since the end of the period.
FINANCIAL DATA AND KEY INDICATORS
Amounts in SEK thousands unless otherwise stated
||Q1 – Q2
||Q1 – Q2
|Net sales growth, %
|Gross margin, %
|Operating margin, %
|Cash flow from the operating activities
|Cash and cash equivalents
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).
Link to all public information such as link to webcast and participant number for the telephone conference:
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 it by phone.
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
Precise continued to see strong development during the quarter, including a profit at EBITDA level and positive cash flow from operating activities, while we continued to invest in the field of Digital Identity. The quarter was an eventful one in many respects, with continued integrations of our BioMatch Mobile product in most ranges of mobile phones and tablets, and important steps in the development and commercialization of Precise YOUNiQ, primarily in the Access application area. In the wake of Covid-19, this is an application area that has generated greater interest, as evidenced by major investments being made by security companies, real estate companies, government agencies and other actors that have realized the need for contactless, secure and convenient identification solutions for access to buildings and premises. Precise has a function to deliver here.
Net sales in the second quarter totaled SEK 23.6 million, 76% more than in the same period last year. EBITDA improved and totaled SEK 2.0 million, and there was a loss at EBIT level of SEK -1.1 million, an improvement of SEK 6.1 million on the same period last year. The operating loss is due above all to the investments being made in the area of Digital Identity in order to secure future growth. These investments are being made possible by the positive cash flow from the Mobile area. All in all the pandemic has highlighted the resilience of our business model. Even though it is difficult at present to judge the situation with regard to macroeconomic effects and demand for consumer cyclicals in future, we expect sales over the next two quarters to be in line with the second quarter of the year, enabling continued investments in future growth.
During the quarter we signed a commercial agreement with Temporary Space in respect of Precise YOUNiQ. Temporary Space offers temporary premises, known as modules, which are used at various construction sites. We are conducting a continuous dialog with Temporary Space about their future needs, in which Precise YOUNiQ forms part of their journey towards digitalization.
Alongside the commercial installations, we are also implementing a number of proof-of-concepts with selected hospitals. These are proceeding according to plan and have so far reported good results, creating good prospects of being able to sign commercial agreements with the hospitals in due course. We have also signed a collaborative agreement with NVSS Security, who will from now on be our service and support partner, as well as contributing to sales work for Precise YOUNiQ in the area of Access.
In the Mobile area, collaborations with our partners in Asia have resulted in our product for fingerprint recognition in mobile devices being integrated into devices from companies including Samsung and Huawei, the two biggest suppliers of Android devices in the world. Our focus in the Mobile area is now on extending our share of the value chain in terms of software for fingerprint sensors and assuming greater responsibility for, among other things, pre-processing fingerprints in order to even further enhance our position with our partners, as well as to identify and target new potential partners.
Demand for contactless methods of processes such as payment has increased during the year. Banks in Sweden have raised their limit for contactless payments from SEK 200 to SEK 400, in order to avoid the spread of infection that can occur through contact with the card terminal when entering the PIN code. Consequently, around 50 per cent of all card payments in Sweden are now contactless. This is also driving the development of biometric cards, where Precise has a certified product that is ready to be integrated into the cards. As reported previously, we are waiting for another link in the supply chain to be certified, before card issuers can start to mass produce the cards and thereby reduce their manufacturing costs. Even though there has been a general increase in activity, we do not yet expect any major volumes of biometric cards from any of the card issuers in 2020.
In summary, it has been an eventful first six months of the year for Precise, naturally dominated by the ongoing pandemic. We have reorganized the business and can efficiently manage sales, product development and marking digitally. Our absolute focus for the rest of the year on sales, and our vision of secure, convenient identification wherever you are, whoever you are and whatever you are doing is more relevant now than ever.
Stefan K Persson, CEO