“In its statement, FPC suggested that it will ultimately overcome these challenges…”
Fingerprint Cards is reigning-in its previously high expectations for this year, officially withdrawing its revenue guidance for 2017 as the company faces a difficult business situation.
In a statement, FPC predicted a decline in revenues of over 50 percent for the first quarter of the year, compared to Q1 of last year; and said that its “short-term challenges are expected to continue until the second quarter”. FPC attributed these challenges to “weakened demand from OEM customers”, compounding a “seasonally sluggish start of the year”, and also to a glut of inventory in the supply chain. As such, FPC “cannot confirm” its revenue guidance for the year, previously stated to be in the range of 7.5 to 9.5 billion SEK, and its Board of Directors has withdrawn its proposal of two SEK 2016 dividends for shares in the company.
The about-face in FPC’s 2017 outlook comes after last month’s warning from longtime software partner Precise Biometrics that its revenues from smartphone integrations via FPC were falling steadily and expected to cease entirely in the second half of this year. Precise Biometrics attributed the trend to increasing competition in the mobile biometrics market.
In its statement, FPC suggested that it will ultimately overcome these challenges, noting it “has a strong customer base to build on” and is engaged in “an active dialogue” with customers regarding its newly acquired Delta ID iris scanning technology.
(Originally posted on FindBiometrics)