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Fingerprint Card — Earnings Release 2008
Aug 18, 2008
3048_rns_2008-08-18_82ba6c7a-8c2b-4a3c-9fe6-53752db9c9cd.pdf
Earnings Release
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PRESS RELEASE Gothenburg August 18, 2008
Fingerprint Cards adjusts its delivery plans
In the interim report for the period January to June 2008 Fingerprint Cards AB has forecast that deliveries for this year´s third quarter were planned to increase by 50 percent compared with the second quarter of the year. Since the publication of this interim report the Company has received information concerning production interruptions at one of its subcontractors which implies that the delivery plan is unlikely to be fulfilled exactly as stated. The Company´s present knowledge and understanding of the situation requires that this forecast be adjusted, meaning that deliveries for the third quarter are now planned to increase only marginally compared with the second quarter. The assessment is that the production problem will be solved within the next month.
The interruption concerns a specific technical inspection stage in the production process, which takes place just before the sensors produced are delivered to the subcontractor carrying out the packaging work. Following the application of a protective layer to the sensor surface an automated test is made, and the subcontractor responsible for this test has not yet managed to get the automated test equipment working to its full extent and, as a consequence, the flow of chips that continues on to the packaging stage is less than has been planned by the Company for this third quarter. The present assessment is that that the problem will be solved within the next month. No additional delays have been shown by the subcontractor carrying out the packaging work following this inspection.
Sales for this year are expected to increase by approximately 70 percent compared with last year´s sales. The financial goal communicated in the last interim report namely, that the Company plans to reach a break-even point some time during the first part of 2009 continues, with the clarification that this will be during the first half of 2009.
"It is of course disappointing having to communicate a deviation from our plans but, it is our belief that the production interruptions we are crossing should be seen as temporary. Fingerprint Cards´ products are technically advanced and the tolerances in production are very small, so this kind of production problem can arise, particularly with the high quality requirements we demand of our subcontractors. In this matter it is also relevant to point out that our order stock is healthy and that our other production is running at full speed", assures Lennart Carlson, CEO and President of Fingerprint Cards AB.
For further information, please contact:
Lennart Carlson, CEO of Fingerprint Cards AB 031-607820, [email protected] Fingerprint Cards AB, Box 2412, 403 16 Gothenburg www.fingerprints.com