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Highlights of the quarter
Sales increase in constant currency terms of 32 percent year on year.
The first computer with Fingerprints’ new PC solution was launched.
The most recent generation of Fingerprints’ T-Shape® sensor module and software platform achieved compliance with Mastercard’s reference specifications.
For the second quarter of 2021, Fingerprints expects Group revenue to be in the range of SEK 330-370 million, based on the exchange rate SEK/USD 8.40.
First quarter of 2021
Revenues amounted to SEK 354.7 M (310.0)
The gross margin was 29 percent (24)
EBITDA totaled SEK 17.2 M (11.6)
The operating result was SEK 1.7 M (neg: 17.7)
Earnings per share before dilution amounted to SEK 0.03 (neg: 0.01)
Cash flow from operating activities amounted to SEK 36.3 M (neg: 37.8)
The healthy demand situation continued during the first quarter, which was reflected in a sales increase in constant currency terms of 32 percent compared to the same quarter 2020. The limiting factor for our sales remains the inadequate availability of production capacity among semiconductor manufacturers. As previously communicated, we have intensified our efforts to secure more suppliers. We are making progress and this work remains a high priority in 2021.
Our product mix has continuously improved, with an increasingly positive impact on our gross margin as a result. Our profitability also benefited from continued high sales from our inventories, continued effective cost control, as well as a certain positive currency effect in relation to the preceding quarter. Fingerprints bought back own shares for approximately SEK 85 M during the quarter. Cash flow from operating activities amounted to SEK 36 M and our liquidity remains good, with net cash holdings of SEK 292 M at March 31, 2021. Since the first quarter of 2020, own shares have been repurchased for SEK 240.7 M.
The FPC1542, our recently launched sensor with a curved shape, was very well received by the market. As with earlier sensors in this product family (FPC1540/1541), the FPC1542 is intended for side mounting and can, for example, be integrated in the volume control or power button in a smartphone. During the first quarter, Xiaomi launched the Redmi K40, K40 Pro and K40 Pro+ phones featuring FPC1542. These smartphones are the first in the world that have a curved, side-mounted fingerprint sensor, an innovation enabled by Fingerprints’ unique capacitive technology, combined with our advanced matching algorithm. During the quarter, the first computer with Fingerprints’ new PC solutions was also launched: the RedmiBook Pro 15 from Xiaomi. Several products from leading PC manufacturers are in the pipeline for launch using our sensor solution, and we expect favorable growth in the market for fingerprint sensors for computers in the years ahead.
Biometric payment cards are another very important growth area for Fingerprints and during the quarter, we continued to strengthen our world-leading position in this emerging mass market for biometric solutions. At the end of March, we announced that Fingerprints and Fime had collaborated to achieve compliance with Mastercard’s reference specifications for the most recent generation of Fingerprints’ T-Shape® sensor module and software platform for biometric payment cards. This simplifies the approval process for card manufacturers, which will save time and money when they start and scale up biometric card projects.
We have, as previously communicated, a very positive view of the trend in the market for biometric solutions in the years to come. To prepare the company for its next growth phase, we have adapted and optimized the company’s legal structure. Two regional offices were created: one in Shanghai, China and one in Zug, in Switzerland. The Shanghai office will be the center for the Mobile business line, while the office in Zug will be the base for our Payments & Access business line. In addition to this, we are establishing a sales and distribution center in Singapore, with the aim of enhancing the efficiency of inventory and distribution management and thereby creating further global benefits of scale in our distribution operations. I am convinced that these adjustments will benefit Fingerprints through increased flexibility, speed, cost effectiveness, as well as through a sharper focus on our two individual business lines.
Christian Fredrikson, President and CEO
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