Fingerprint Cards (FPC) is warning that its revenues for the second quarter will be lower than initially expected. The company had originally anticipated revenues between SEK 330 million and SEK 370 million, but has been forced to revise that estimate after a COVID-19 outbreak forced one of its suppliers to shut down its production facilities in Vietnam.
The temporary shutdown disrupted FPC’s business activities and ultimately impacted the company’s financial outlook. However, the industrial facility will gradually start to reopen later this month, and FPC has reached out to its other suppliers to raise its production capacity in the third quarter. As a result, FPC is hoping to make up the shortfall and recover lost sales in the months ahead.
The outbreak occurred in the province of Bac Giang. FPC was unable to provide a firm numerical estimate for the second quarter, stating only that its performance would be worse than it had previously hoped. FPC made the disclosure in an effort to comply with the European Union’s Market Abuse Regulations.
This is not the first time that COVID-19 has disrupted FPC’s supply chain, nor is FPC the only fingerprint provider to experience such problems. FPC blamed lower production capacity for its sluggish performance in the third quarter of 2020, while Allied Market Research has reported that the pandemic has had a detrimental impact on the global fingerprint sensor market at large.
(Originally posted on FindBiometrics)