Brief: Fingerprint Cards Anticipates Improvement In Sales Volume, Gross Margin From Q2 2023

Fingerprint Cards AB

25/04/2023 06:22

April 25 (Reuters) - Fingerprint Cards AB  FINGb.ST :
    * TO DATE, FINGERPRINTS HAS DELIVERED MORE THAN A MILLION
T-SHAPE
SENSOR MODULES FOR BIOMETRIC PAYMENT CARDS
    * ANTICIPATES A GRADUAL IMPROVEMENT IN SALES VOLUME AND
GROSS
MARGIN FROM Q2 OF 2023
    * Q1 WAS CHARACTERIZED BY INTENSE PRICE COMPETITION AND
LOWER
VOLUMES COMPARED WITH PRECEDING YEAR
    * INSUFFICIENT DEMAND AND CONTINUED DESTOCKING IN INDUSTRY
ARE
EXPECTED TO CONTINUE TO HIT SALES AND MARGINS, AT LEAST DURING
Q2
    * DEMAND FOR SMARTPHONES AND COMPUTERS REMAINED SUBDUED
DURING Q1
    * Q1 CASH FLOW FROM OPERATING ACTIVITIES NEGATIVE SEK 42.3
MILLION
VERSUS NEGATIVE SEK 90.3 MILLION YEAR AGO
    * Q1 OPERATING LOSS SEK 75.7 MILLION VERSUS LOSS SEK 31.7
MILLION
YEAR AGO
    * Q1 WAS CHARACTERIZED BY INTENSE PRICE COMPETITION AND
LOWER
VOLUMES COMPARED WITH PRECEDING YEAR
    * OUR INVENTORY LEVELS AND THOSE OF OUR COMPETITORS REMAIN
TOO
HIGH, WHICH LED TO CONTINUED STRONG PRICE PRESSURE DURING
QUARTER
    * DEMAND FOR SMARTPHONES AND COMPUTERS REMAINED SUBDUED
DURING Q1,
    * OUR CUSTOMERS  REDUCED THEIR INVENTORY TO LEVELS
SIGNIFICANTLY
BELOW NORMAL
    * NOTED A STEADY IMPROVEMENT IN ORDER INTAKE DURING Q1 AND
ALSO AT
BEGINNING OF Q2
    * VALUE OF CONFIRMED ORDERS THAT WE HAVE SO FAR RECEIVED FOR
DELIVERY IN Q2 EXCEEDS OUR Q1 REVENUE.
    * WE EXPECT THAT COMBINATION OF INSUFFICIENT DEMAND AND
CONTINUED
DESTOCKING WILL CONTINUE TO HAVE A NEGATIVE IMPACT ON INDUSTRY
    * GLOBAL PC MARKET REMAINED WEAK IN Q1, WITH A DECLINE IN
DELIVERIES OF AS MUCH AS 30% VERSUS CORRESPONDING PERIOD IN 2022

Source text for Eikon:  ID:nGNE1ztBKr 
Further company coverage:  FINGb.ST 

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