Strong growth and positive EBITDA for the full year 2015

YEAR-END REPORT 2015 - PRECISE BIOMETRICS AB (PUBL), CORPORATE IDENTITY NO. 556545-6596
FOURTH QUARTER 2015
  • Consolidated net sales increased to SEK 23.4 (9.9) million.
  • Operating profit increased to SEK 4.4 (-9.7) million.
  • EBITDA increased to SEK 6.7 (-6.3) million.
  • Profit after tax increased to SEK 4.3 (-9.6) million.
  • Earnings per share for the period increased to SEK 0.01 (-0.03)
FULL YEAR 2015
  • Consolidated net sales increased to SEK 56.3 (31.4) million.
  • Operating profit improved to SEK -9.4 (-44.5) million.
  • EBITDA improved to SEK 0.5 (-31.7) million.
  • Loss after tax improved to SEK -9.4 (-44.0) million.
  • Earnings per share improved to SEK -0.03 (-0.13).
  • Cash and cash equivalents were SEK 52.3 (59.7) million at the end of the year.
  • The business areas Desktop & Physical Access Solutions is integrated into Mobile Smart Card Solutions from the start of 2016. 
 SIGNIFICANT EVENTS IN THE FOURTH QUARTER
  • Precise BioMatch Mobile was integrated into over 20 smartphones.
  • Licensing agreements were signed with five sensor manufacturers; Cypress, Oxi Technology, Focaltech, Gingytech and J-Metrics.
  • Follow-on order for Tactivo from the Defense Logistics Agency (DLA), an agency of the U.S. Department of Defense.
SIGNIFICANT EVENTS FOR THE FULL YEAR
  • Precise BioMatch Mobile was integrated into over 55 smartphones from more than 25 manufacturers.
  • Licensing agreements were signed with eight sensor manufacturers; Silead, JP Sensor, Elan, Cypress, Oxi Technology, Focaltech, Gingytech and J-Metrics.
  • Several follow-on orders for Tactivo from the Defense Logistics Agency.
  • Tactivo order from the US Navy for secure mobile access to e-mail and browsing capabilities on iOS devices.
  • Tactivo order from Imperial College Healthcare NHS Trust and Oxleas NHS Trust in the UK for secure mobile access to healthcare systems.
  • Precise Biometrics was awarded the 2015 Frost & Sullivan Award for Global Customer Value Leadership in fingerprint recognition for mobile devices.

CONFERENCE CALL
On the occasion of today's year-end report, we are pleased to invite investors and journalists to a conference call today at 10.00. To participate, dial +46 (0)8 566 426 91. More information can be found at the last page of the report.

CEO'S COMMENTS

I'm very pleased and proud to announce that the positive sales trends within Fingerprint Technology and Mobile Smart Card Solutions are continuing and have led to Precise Biometrics showing an operating profit at EBITDA level for the full year for the first time in the company's history. Net sales in the fourth quarter totaled SEK 23.4 million, representing an increase of 138 per cent compared with the same quarter 2014. Operating costs are well-controlled and rose marginally during the quarter. The quarter's EBITDA increased to SEK 6.7 million, and the period's net profit improved to SEK 4.3 million. Developments in 2015 showed very strong sequential growth in sales and profit. It is extremely gratifying to see that all efforts made during the past two years have now borne fruit.

The market for fingerprint technology in mobile devices is continuing to grow rapidly. The fourth quarter saw the launch of a further 20 smartphones with Precise BioMatch Mobile. Precise BioMatch Mobile has been integrated into a total of more than 55 smartphones from over 25 manufacturers, including smartphones from brands such as Google, Huawei, HTC, Lenovo, Sony and Xiaomi. Fingerprint readers is now standard for nearly all manufacturers' premium models, and is also increasing rapidly for phones in the medium and low-price segments. One third of all smartphones sold in 2015 contained fingerprint technology. In tandem with the volume growth in the market, interest is also increasing among new players to take a market share. We concluded licensing agreements during the quarter with five additional sensor manufacturers - Cypress, Oxi Technology, Focaltech, Gingytech and J-Metrics. We now have a agreements with a total of ten sensor manufacturers, which further reinforces our position as the market-leading supplier of fingerprint software, and thereby provides good prerequisites for continued growth and a large market share.

The interest for fingerprint technology within other product areas than smartphones is growing rapidly. Hundreds of millions of people use fingerprint technology every day in their smartphones for greater convenience and security. The technology is accepted and will soon be found more or less in every person's hand, which will also lower the threshold for integration in other types of products. As sensors become smaller and therefore cheaper, while new sensor technologies gain a foothold in the market, prerequisites for growth will be created within new product areas such as smart cards, wearables, locks, vehicles and products within the concept known as Internet of Things. Our fingerprint software is already integrated into several products in the market, such as national ID cards, locks, electronic wallets and PC accessories. In addition, we are involved in several interesting projects that we believe could provide support to our growth during the coming years.

Positive developments within the Mobile Smart Card Solutions business area are continuing. We received orders during the quarter from units of the US Department of Defense and from the healthcare sector in the United Kingdom and Sweden. Growth is driven by higher demands for secure mobility solutions and improved access to mobile applications with support for smart cards. In the United States, major orders were received from the Defense Logistics Agency (DLA) and the US Navy. We anticipate continued orders from the US Department of Defense as a result of their efforts to roll out mobile solutions for secure access to email and the Internet.

The healthcare markets in Sweden and the United Kingdom have developed well with both increased sales and a rising number of pilot projects for secure mobility with Tactivo. In order to meet demand, we have worked intensively with our partners to package attractive solutions with Tactivo that enable convenient and secure mobility with smart cards. Feedback has been very positive from both healthcare staff and managers, which leads us to believe that sales will continue to increase in both the United Kingdom and Sweden.

Outlook
The company is stronger than ever, and is well-positioned for continued profitable growth. We have established Precise Biometrics as the leading supplier of fingerprint software for the mobile device market. The volume within the market and the number of utilization areas for fingerprint technology is increasing rapidly. Our objective is to increase sales and market share within the segment of fingerprint technology for mobile devices, and to establish a leading position within new product areas that require a small sensor. We shall ensure that our software gives the best user experience of products with small fingerprint sensors for platforms with limited processing power and memory space, irrespective of the sensor technology, operating system or platform. We will create prerequisites for achieving our objectives by strengthening our collaboration with existing customers and initiating new agreements with additional sensor manufacturers.

We also see good growth potential within the Mobile Smart Card Solutions business area. Interest is rising within existing markets for Tactivo, and the possibility exists to develop new markets, primarily within the public sector, where a smart card is often required for secure mobile log-in to information.

Håkan Persson, CEO 

The information in this report is of such a nature that Precise Biometrics AB (publ) has an obligation to publish it under the Securities Market Act. The information was submitted for publication on February 16, 2016, at 8:00 AM CET.