INCREASED SALES AND FURTHER FOCUSING OF BUSINESS OPERATION

Sales in the remaining operation, Fingerprint Technology, increased during the quarter. The partnership with Silead has resulted in substantial royalty revenues as Precise BioMatch Mobile has been launched in a number of phone models from one of the world’s biggest manufacturers. Precise Biometrics concluded an agreement with IDENTOS to divest the Mobile Smart Card Solutions business area in order to focus its activities on the Fingerprint Technology business area.

SECOND QUARTER 

  • Net sales for the remaining operation totaled SEK 20.2 (18.9) million.

  • The operating profit for the remaining operation totaled SEK 0.5 (5.3) million.

  • Profit after tax for the remaining operation totaled SEK 0.2 (5.3) million.

  • Earnings per share for the remaining operation totaled SEK 0.00 (0.02).

  • Earnings per share for the total operation totaled SEK 0.00 (0.01).

  • Cash flow from total operations totaled SEK -1.3 (7.5) million.

INTERIM PERIOD  

  • Net sales for the remaining operation during the interim period totaled SEK 36.8 (39.6) million.

  • The operating profit/loss for the remaining operation during the interim period totaled SEK -2.2 (12.4) million.

  • Profit after tax for the remaining operation totaled SEK -3.2 (12.4) million.

  • Earnings per share for the remaining operation totaled SEK -0.01 (0.04).

  • Earnings per share for the total operation totaled SEK -0.01 (0.03).

  • Cash flow from total operations totaled SEK 15.8 (17.5) million. Cash and cash equivalents for the total operation totaled SEK 115.0 (67.4) million at the end of the interim period. 

SIGNIFICANT EVENTS  

  • An agreement was concluded with German company IDENTOS GmbH, which will take over the Mobile Smart Card Solutions business area as of January 1, 2018.

  • A new security suite was launched with industry-leading software for fingerprint recognition with spoof and liveness detection, as well as standalone anti-spoof products and services.

  • A licensing agreement was signed with Korean sensor manufacturer Melfas. After the end of the quarter, a licensing agreement was signed with module house O-Film.

  • Precise BioMatch™ Mobile was integrated into Qualcomm® Fingerprint Sensors, next-generation ultrasound-based fingerprint solutions from Qualcomm.

  • Seven mobile phones and two smart cards were launched with the company's fingerprint software.

FINANCIAL DATA AND KEY INDICATORS    

As a consequence of the fact that the Mobile Smart Card Solutions business area has been classified as a business held for sale, previously reported figures have been converted in order to improve comparability. In order to obtain comparable historical data, previously reported figures have only been adjusted for expenses relating directly to the discontinued business area, which will no longer affect the company's remaining operation. The resources that were previously allocated to the Mobile Smart Card Solutions business area will be transferred to the Fingerprint Technology business area before the divestment is completed and have therefore not been included in the divested business. Resources are being reinforced in order to meet the market's demand for increasingly advanced solutions in the field of Fingerprint Technology.

The impact of the discontinued operation on the financial position has not been reported separately, as the company does not believe that it is possible to report the impact of the discontinued operation on cash flow. Cash flow is instead reported from the total operation.
Unless otherwise specified, reported figures in the interim report relate to the remaining operation.

KEY INDICATORS 

Amounts in 2017  2016  2017  2016  2016  Rolling 
SEK thousand
unless
otherwise
stated 
   Q2  Q2  Q1-Q2  Q1-Q2  Full 12
year  months 
Net sales   20,160  18,936  36,777  39,560  83,299  80,516 
Net sales 6.5%  175.1%  Neg  282.9%  95.7%  12.2% 
growth, % 
Gross 95.0%  97.8%  94.7%  97.9%  98.0%  96.5% 
margin, % 
Operating 481  5,344  -2,179  12,402  25,407  10,826 
profit/loss 
Operating 2.4%  28.2%  -5.9%  31.4%  30.5%  13.4% 
margin, % 
Operating -1,314  7,462  15,808  17,497  37,658  35,970 
cash flow,
total
operation
Cash and 115,006  67,411  115,006  67,411  135,753  115,006 
cash
equivalents,
total
operation

PRESENTATION OF THE INTERIM REPORT          

In connection with today's interim report, we issue an invitation to an information event today at 10:00. Please see the last page of the interim report for further information about participation. 

This information is information that Precise Biometrics AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 8.00 CEST on August 16, 2017.