GOTHENBURG, Sweden, February 4, 2016 /PRNewswire/ --
Fourth quarter 2015:
- Revenues amounted to SEK 1,351.5 M (105.0), up 1,187% compared with fourth quarter of 2014.
- Gross margin was 46% (32).
- Operating profit amounted to SEK 517.6 M (loss: 30.0).
- Earnings per share increased to SEK 6.39 (loss: 0.49).
- Cash flow from operating activities was SEK 537.4 M (neg: 74.7).
January to December 2015
- Revenues amounted to SEK 2,900.5 M (233.6), up 1,142% compared with 2014.
- Gross margin was 43% (31).
- Operating profit amounted to SEK 910.3 M (loss: 145.2).
- Earnings per share increased to SEK 12.62 (loss: 2.47).
- Cash flow from operating activities was SEK 908.1 M (neg: 174.3).
- The 2016 revenue guidance is updated to SEK 7,000-8,500 M, compared with the previous guidance of SEK 6,500-8,500 M.
- As previously announced, it is estimated that the operating margin for 2016 will exceed the operating margin for the second half of 2015. The operating margin for the second half of 2015 was 37%.
The Board's proposal to the Annual General Meeting 2016
- The Board proposes that no dividend be paid for fiscal year 2015
- The Board proposes a stock split of 5:1
- The Board proposes a mandate to buy back and transfer FING B shares
Strong closing of a record year
I am very proud to report that Fingerprint Cards (FPC) closed 2015 in line with the strong performance achieved in the first three quarters of the year. Our fourth-quarter revenues of SEK 1,352 M represented sequential growth of 40% compared with the third quarter. This confirms that FPC has established a leading position in a rapidly expanding market. Together with an increasing gross margin, this resulted in an operating profit of SEK 518 M for the fourth quarter. Revenues for 2015 amounted to SEK 2,901 M, corresponding to growth of 1,142% compared with 2014.
We continue to capture market share in touch fingerprint sensors for smartphones. During the fourth quarter, 18 smartphones featuring our touch fingerprint sensors were launched by smartphone manufacturers including Huawei, Xiaomi, Lenovo, LG and ZTE, which all belong to the seven largest smartphone manufacturers in the world. During 2015, no less than 55 smartphones featuring FPC's touch fingerprint sensors were launched by 23 manufacturers, compared with one smartphone each by two smartphone manufacturers in 2014.
The gross margin improved slightly in the fourth quarter and amounted to 46% compared with 45% in the third quarter. The operating margin for the fourth quarter was 38%, while the full-year 2015 figure was 31%. The strong earnings trend is also reflected in our cash flow from operating activities, which is evidence of the company's efficient and scalable business model.
Secure mobile payments an important market driver
We had major success in China in 2015, where we established a market-leading position at an early stage. During 2015, our Chinese customers launched 40 smartphones integrating our touch fingerprint sensors, of which 33 were launched during the second half of the year. Our major Chinese customers are planning for continued strong growth in 2016, partly on the back of increased presence outside China. Fingerprint sensors are also rapidly becoming a mandatory component in Chinese smartphones, driven by demand for secure mobile payments. Our successes outside China in the second half of the year are also worth noting, including Google's two Nexus smartphones, which contain our FPC1025 touch fingerprint sensor. In all, this is generating excellent conditions for continued growth in 2016.
Achievements within growing market segments
During the fourth quarter, we continued work to adapt our sensors for applications in market segments other than smartphones, for example, smart cards. This work is progressing as planned and the first commercial product launches are scheduled to take place in 2016. At the start of 2016, we also announced progress in providing our touch fingerprint sensors to the automotive industry, where we have already won the first evaluations from a globally leading car manufacturer concerning future integration in cars. We also made progress related to the Internet of Things, whereby different types of objects are connected to the Internet, where fingerprint sensors are beginning to gain a significant role. The reason why we secure the first engagements in these new segments is the same as in smartphones - we offer the market's leading technology and products, thus enabling our customers to provide the best possible user experience to the consumers, irrespective of whether the end product is a smartphone, a smart card, a vehicle or a connected object.
Continued growth in 2016 and beyond
In 2015, we established FPC as the globally leading manufacturer of complete and integrated systems for fingerprint sensors. Our objective in 2016 is to consolidate our position as the market's leading supplier by growing further together with our existing customers, and by breaking new ground in smartphones and other market segments. I am very enthusiastic about FPC's future. Our aim is to continue to gain market share and prepare for a market which, according to our estimates, will amount to more than one billion units per year as of 2017. By capitalizing on our economies of scale in technology and business and using our financial strength to increase our investments, we plan to remain the leading supplier of fingerprint sensors in the coming years and thus continue our profitable growth.
Jörgen Lantto, CEO
Fingerprint Cards AB (publ), Corp. Reg. No. 556154-2381, discloses this information pursuant to the Swedish Securities Market Act (2007:528) and the Swedish Financial Instruments Trading Act (1991:980). The information was issued for publication on February 4, 2016, at 7:00 a.m. (CET)
Issuance, publication or distribution of this year-end report in certain jurisdictions could be subject to restrictions. Recipients of this year-end report are responsible for using the year-end report and the information contained herein in accordance with applicable rules in each jurisdiction. This year-end report does not constitute an offering of, or invitation to acquire or subscribe for, new securities in Fingerprint Cards in any jurisdiction.
For further information, contact:
Jörgen Lantto, CEO, Fingerprint Cards AB (publ),
+46(0)31-60 78-20, email@example.com
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