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Fingerprint Card — Earnings Release 2010
May 31, 2010
3048_rns_2010-05-31_8851bfe6-b255-402f-b37c-779f2abbabda.pdf
Earnings Release
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Press release
PRESS RELEASE Gothenburg, May 31, 2010
Delay and uncertainty concerning a bank project in China results in reduced forecast for the second quarter and full-year 2010.
Fingerprint Card AB (publ) (FPC) forecast in its interim report for January-March 2010 that sales would increase during the second quarter compared with the first quarter of 2010. FPC also forecast a sales increase of 75-100% for full-year 2010. A project that is of importance to FPC has now been delayed and uncertainty concerning implementation of the project has increased. This means that FPC will probably not achieve its forecast targets for the second quarter or for 2010 as a whole.
The new forecast for the second quarter is that sales will probably increase 30-40% compared with the second quarter of 2009. For full-year 2010, it is forecast that sales will increase 40-60% compared with 2009. The previously issued forecast that the gross margin for 2010 will be higher than in 2009 stands firm.
In connection with a review of FPC's principal market, China, which was implemented jointly by FPC and its distributor, HST, it became apparent that one of the major banks in China had postponed a project and that uncertainty concerning the implementation of the project had increased.
"The forecasts issued by Fingerprint Cards are a balanced summary of all of our customers' forecasts and of orders placed. If these forecasts are changed significantly, we inform the market and issue updated information as soon as we see a change. Since we have now received new information concerning uncertainty and delays in respect of a major project, we must unfortunately correct our previously issued forecast. It is important to point out that it is an individual order that has led to our adjusting the forecast. We still foresee a favorable market trend in China, as well as other Asian markets, and that FPC will continue to develop well during the remainder of 2010," comments President and CEO Johan Carlström.
For additional information, please contact: Johan Carlström, President and Chief Executive Officer of Fingerprint Cards AB +46-(0)31-607820, [email protected] Fingerprint Cards AB, Box 2412, SE-403 16 Gothenburg www.fingerprints.com
Fingerprint Cards AB (FPC)develops biometric technology that through analysis and matching of an individual's unique fingerprint verifies the person's identity. The technology consists of biometric sensors, processors, algorithms and modules that can be used separately or in combination with each other. The competitive advantages offered by FPC's technology include unique image quality, extreme robustness, low power consumption and complete biometric systems. With these advantages and the ability to achieve extremely low manufacturing costs, the technology can be implemented in volume products, such as smart cards and mobile telephones, where extremely rigorous demands are placed on such characteristics. FPC's technology can also be used in IT and Internet products, for such applications as security and access control. Fingerprint Cards AB (FPC) is listed on Nasdaq OMX Stockholm (FING B) and has its head office in Gothenburg, Sweden.
Fingerprint Cards AB (publ) discloses this information in accordance with the Securities Market Act (2007:528) and/or the Financial Instruments Trading Act (1991:980). The information was issued for publication on May 31, 2010, at 8:00 a.m. CET.