YEAR-END REPORT FOR THE PERIOD JANUARY TO DECEMBER 2020
FOURTH QUARTER
- Net sales totaled SEK 22.5 (38.8) million.
- EBITDA totaled SEK 0.7 (16.0) million.
- The operating profit/loss totaled SEK -2.6 (12.5) million.
- Earnings for the period totaled SEK -8.8 (13.4) million.
- Earnings per share totaled SEK -0.02 (0.04).
- Cash flow from operating activities totaled SEK 12.2 (14.3) million.
FULL-YEAR PERIOD, JANUARY-DECEMBER
- Net sales totaled SEK 92.3 (91.9) million.
- EBITDA totaled SEK 6.9 (13.8) million.
- The operating profit/loss totaled SEK -5.8 (0.7) million.
- Earnings for the period totaled SEK -12.2 (1.0) million.
- Earnings per share totaled SEK -0.03 (0.00).
- Cash flow from operating activities was strengthened and totaled SEK 21.9 (-0.5) million.
SIGNIFICANT EVENTS DURING THE QUARTER
- YOUNiQ integrated with Telcred and Axis Communication’s system. First installation operational at Zynka Group’s head office in Gothenburg
- Collaboration with Sehlhall Fastigheter on YOUNiQ
SIGNIFICANT EVENTS AFTER THE END OF THE FULL-YEAR PERIOD
- 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.
FINANCIAL DATA AND KEY INDICATORS
Amounts in SEK thousands unless otherwise stated
KEY INDICATORS
| 2020 | 2019 | 2020 | 2019 | |
| Q4 | Q4 | Full-Year | Full-Year | |
| Net sales | 22 494 | 38 816 | 92 349 | 91 927 |
| Net sales growth, % | -42.0% | 178.3% | 0.5% | 35.9% |
| Gross margin, % | 84.7% | 91.9% | 84.2% | 86.4% |
| EBITDA | 703 | 15 997 | 6 862 | 13 791 |
| Operating profit/loss | -2 625 | 12 534 | -5 792 | 651 |
| Operating margin, % | -11.7% | 32.3% | -6.3% | 0.7% |
| Cash flow from the operating activities | 12 215 | 14 257 | 21 896 | -477 |
| Cash and cash equivalents | 76 258 | 73 676 | 76 258 | 73 676 |
See the Financial Glossary for definitions.
INVITATION TO PRESENTATION OF THE YEAR-END REPORT
In connection with today’s year-end report, Precise invites investors and the media to an informational conference call.
The conference call starts at 10:00 AM on February 16.
Link to all public information such as link to webcast and participant number for the telephone conference:
https://financialhearings.com/event/13013
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: +46850558352
UK: +443333009265
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
During 2020 we confirmed our stable position in the Mobile segment, where we continue to gain ground together with our customers in a competitive market. Our strategy to work in a focused way with a smaller number of partners and to move closer to the end customer has produced results in the form of increased income and positive cash flow during the year. This, combined with good cost control, has resulted in a stable financial position, enabling continued investments in our prioritized areas. We have also made major progress in the commercialization of YOUNiQ through new customers and strategic partnerships.
Along with the increased use of digital products and service, there is an increased need for more convenient and secure identification solutions. In the wake of Covid-19, there has been increased interest in Precise YOUNiQ, contactless identification solutions in public environments, and during the fourth quarter the commercialization of YOUNiQ continued in the application area of access. Through the agreement with Sehlhall Fastigheter, we can now offer our facial recognition technology for secure, convenient access to their properties. This agreement is an example of how YOUNiQ enhances our customers’ offering through an improved user experience and security.
After the end of the quarter we also entered into a collaboration with another platform provider – Sensative – in line with our strategy to integrate YOUNiQ with open platforms. We will continue to identify and enter into partnerships of this kind with a view to creating solutions that focus on the end customer’s needs. Another gratifying event saw the first commercial installation being carried out in the USA, where Clarkson University, through their business incubator North Country Incubator, chose to install YOUNiQ at their premises. In 2021 we will continue to invest in this application in order to further accelerate the rate of commercialization for YOUNiQ. The main focus is the Swedish market, and to continue to develop our sales channels in the USA and to prepare to move into other Nordic countries.
We continued to win projects in the Mobile segment thanks to our global setup, with local offices in Shanghai and Potsdam, USA, which enabled us to maintain good support for our customers and partners. As a result, our product has continued to be integrated into sensors, which have in turn been implemented in mobile devices from leading OEM manufacturers such as Samsung, for example. To further enhance our position in Mobile, during the quarter we worked intensively on a new generation of our fingerprint software. This new generation is both faster and more secure than before, and also even better at handling demanding environments. The new generation has already been launched to a selection of our partners, and we look forward to a broader rollout during 2021.
In summary, it has been an eventful fourth quarter and 2020 for Precise, characterized by the ongoing pandemic, but also by stable business in the Mobile segment and important progress in YOUNiQ. There is strong, growing interest in our products from customers, and I look forward to continuing to develop and commercialize the best identification solutions in the market, with you as the key.
Stefan K Persson, CEO