Biometrics companies, from sensor developers to makers of autonomous surveillance robots, have released financial updates. Fingerprint Cards (FPC) sees healthier margins by splitting into separate business units. Singapore’s Totm Technologies sees 3.6x growth in first half of 2022 and Mitek reports record first quarter as Zwipe insiders continue to buy company stock.
Fingerprint Cards: Better Margins, obligations and new deals as company enters Zug/Shanghai split
Fingerprint Cards AB reports that its gross margin improved by 8 percentage points in the fourth quarter of 2021 compared to the same period a year earlier, and up 3 percentage points from the previous quarter. The margin is 32%, but with a negative cash flow because the company has split into two wholly-owned subsidiaries to deal with different areas of the biometrics market from January 1, 2022: payment transactions and Access services are now handled by subsidiary Fingerprint Cards Switzerland AG, based in Zug, Switzerland, and mobile and PC operations by subsidiary Fingerprint Technology Company (FPC) in Shanghai.
“This change enables us to focus even more on our two individual business activities, which have different industry conditions in terms of structure, geography, customers, partners and regulations,” commented Christian Fredrikson, President and CEO of Fingerprint Cards. .
“Our new organization also gives us better opportunities to explore distinct and separate financing options and development paths for the different subsidiaries of our Group.”
Fourth quarter 2021 revenue of SEK 356.6 million (US$37.7 million) was in line with FPC’s guidance for the quarter, although down from SEK 369.4 million. SEK in 2020. Cash flow from operating activities was negative SEK 16.8 million (negative $1.78 million) for the quarter compared to a positive result. 46.9 million in the fourth quarter of 2020.
“The negative cash flow from operating activities in the fourth quarter is attributable to an increase in accounts receivable and inventory, a consequence of our growth initiatives. We see a continued positive trend in the underlying market for our products and Fingerprints has ambitious growth plans,” says Fredrikson.
“This increases the need for working capital and R&D investments, so I am very pleased that in December 2021 we were able to successfully issue SEK 300 million ($31.75 million) of covered bonds. leading edge to further accelerate the company’s growth.”
Looking at 2021 as a whole, sales increased by 16% in constant currency and revenue reached SEK 1.36 billion ($143.4 million), compared to SEK 1.26 billion in 2020 .
“We were able to achieve this growth despite having insufficient access to production capacity throughout the year due to the prevailing global semiconductor shortage. I think this demonstrates the strength and stability of our business, which also began to expand into new areas during the year at a significantly higher rate than before,” comments Fredrikson.
The PC and access control businesses contributed to the improvement in gross margin for the fourth quarter as well as for the year and PC is expected to become the second largest area of the business, ahead of access. A new order from Honor (a former subdivision of Huawei, now state-owned) for Fingerprint Cards’ new biometric PC solution, along with deals with Dell, Huawei and Xiaomi, means the company expects that its PC biometrics division exceeds access within 12 to 18 months.
The Q4 2022 launch of biometric payment cards using Fingerprint Cards sensors by Polish bank Pocztowy is expected to be the first of many such launches. All three major payment card secure element vendors are already using FPC technology for their reference designs and in the fourth quarter the company received an order for its latest T-shaped sensor module (T2) from the one of the three biggest card manufacturers.
The T2 has just complied with Mastercard’s latest security requirements for fingerprint sensors.
Fingerprint Cards maintains a revenue forecast of SEK 1.6-2 billion ($169-211 million) in 2022.
Totm Technologies: biometrics and identifier management now 80 percent to surge income
The Singaporean group Totm Technologies announces a 263% increase in its half-year revenues (1H2022 ended November 30, 2021) to 10.1 million Singapore dollars (7.45 million dollars) against 2.8 million Singapore dollars (2, $07 million) for 1H2021.
Totm’s identity management and biometrics business contributed S$8.0 million ($5.9 million) to the group’s overall revenue. “I am pleased that our Identity Management and Biometrics business is starting the new fiscal year on a positive footing,” commented Pierre Prunier, CEO and Executive Director of Totm Technologies.
“The identity verification industry is experiencing rapid growth which can be attributed to technological advancements, increased awareness among the masses regarding the use of biometric systems for security purposes, and end-user convenience in identity and access management.
The company was included in the MSCI Singapore Micro Cap Index on December 1, 2021, as the company seeks backers for its digital ID expansion.
In December, Totm also announced a memorandum of understanding with Abu Dhabi-based Presight AI to develop their combined proprietary technologies to provide biometrics and artificial intelligence capabilities to partners and customers in Southeast Asia, in the Middle East and Africa.
Mitek: 25% YoY Growth in Q1 2022 Generates Record Quarter
Digital fraud prevention company Mitek reports that total revenue increased 25% year-on-year to a record first quarter (ending December 31, 2022) of $32.5 million, down from $33.3 million from the fourth quarter of 2021. GAAP net income increased 44% (65% non-GAAP) to $3.1 million and operating cash flow was $2.3 million dollars.
“Biometrics is transforming the way we offer authentication solutions. Our team will continue to innovate to build trust and keep people safe online,” comments CEO Max Carnecchia.
At the end of its fourth quarter of 2021, the company announced that revenue from transactional identity verification with the company’s selfie biometrics grew at a rate of 33% year-over-year.
Meanwhile, a potential class action lawsuit has been filed against Mitek alleging that the company failed to comply with the informed consent requirements of Illinois’ Biometric Information Privacy Act when authenticating users of the HyreCar app with selfie biometrics.
Knightscope: $22 million NASDAQ listing, new Fortune 500 customer
Autonomous biometric surveillance robot producer Knightscope Inc raised $22.37 million through the sale of 2,236,619 shares of Class A common stock at a price of $10.00 per share as of January 26, 2022. Its shares began trading to trade on NASDAQ under the symbol KSCP on January 27. Since trading began yesterday, it has hit a high of $15.48 and a low of $5.91 and is trade to around $11.00 at midday on Friday.
The company had already raised $75 million so far in investment, reports InvestorPlace.
Knightscope has just announced a new Fortune 500 customer. Securitas has added a Knightscope K5 robot to the security program of one of the largest financial companies in the United States. The autonomous security robot will patrol a new parking lot to help deter thieves, loiterers and trespassers.
The company has 80-90 robots in operation in the United States according to an interview with co-founder William Santana Li with Tech Crunch. Devices work in colleges and shopping malls.
Zwipe: CEO exercises 384,000 stock options
Zwipe AS CEO André Løvestam exercised 384,000 stock options on January 20, 2022, which were granted to him through the company’s stock option incentive program. Each gave him the right to acquire one share of the company at an exercise price of NOK 10.00 ($1.12).
André Løvestam will now hold, privately and through Energetic AS, 1.3 million shares and will hold 306,000 options each giving the right to acquire one share.
biometrics | digital identity | financial results | Fingerprint Cards | Knightscope | mitek | shares | Totm Technologies | Zwipe