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IDEX Biometrics ASA Earnings Release 2020

Feb 25, 2021

3633_10-k_2021-02-25_d17799ed-c8d8-479c-9c3c-e589fdc4d081.html

Earnings Release

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IDEX Biometrics - Interim report for the fourth quarter and preliminary result of 2020

IDEX Biometrics - Interim report for the fourth quarter and preliminary result of 2020

The report and an updated company presentation are enclosed in pdf files.

Fourth Quarter and Preliminary Full Year Financial Results

o            Fourth quarter 2020 revenue was $598 thousand compared to $71

thousand in the fourth quarter 2019 as revenue begins to accelerate

o            Full year 2020 revenue was $1.1 million, including $1 million in

product revenue, compared to $159 thousand in product revenue in 2019

o            Fourth quarter and full year gross margins(*) were 70% and 75%,

respectively

o            2020 Adjusted Operating Expenses(**) were $21.4 million, a decrease

of $4.9 million or 19% compared to $26.3 million in 2019

o            Net loss narrowed to $26.8 million in 2020 from $32.4 million in

2019

o            Ended the year with $7.3 million in cash and raised $26.1 million,

net of fees, in a private placement on February 15, 2021

o            IDEX was approved to list on the Nasdaq and expects to begin

trading on March 1, 2021 under ticker IDBA

Commercial and Market Updates

o            After securing an initial order in the third quarter, IDEX received

an additional production order for TrustedBio(TM) sensors from a tier 1 card

manufacturer in late 2020 that will be incorporated in a card available to

financial institutions early 2021

o            Achieved an additional China UnionPay (CUP) certification for dual

interface biometric payment cards with its partner Goldpac. This is the second

certification with a card manufacturer on the CUP network

o            IDEX's sensor was featured by our partner, CTD, in the first trial

of a fingerprint card for a digital RMB hardware wallet in a trial by Postal

Savings Bank of China.  The DCEP digital currency initiative in China represents

a large market opportunity beyond the traditional payment card market.

o            Continued to expand its strategic partnerships and added a third

global payment network to deliver its fingerprint sensors and related biometric

solutions

o            Received advanced volume production orders of TrustedBio sensors

from multiple tier 1 card manufacturers to secure allocation of future supply

o            Expanded its direct customer engagements with tier 1 innovation

leaders, representing over 40% share of the global payment card market

o            Continued to ramp production shipments to a large IT and financial

services customer for an information security access control solution

Vince Graziani, CEO of IDEX, commented: "During 2020 we made good progress

transitioning from pure product development to commercial activities and ramping

of deliveries.  Throughout the year we achieved several certifications by

multiple major payment networks. Several new card manufacturers have initiated

new product developments based on IDEX's biometric technologies.  In addition to

ramping commercial production shipments for a large IT and financial services

customer, we successfully secured the first commercial orders and began shipment

of our next-generation TrustedBio(TM) solution for biometric payment cards."

He added: "Entering the new year, the Postal Savings Bank of China announced the

first trial of a fingerprint biometric card hardware-wallet as part of China's

digital renminbi (RMB) initiative.   This initiative represents a new high-

volume application for fingerprint biometrics.  We expect 2021 will see broader

use of our technology for these new digital currency applications globally, and

increasing orders and shipments to a broader range of traditional customers,

banks and credit issuers."

Notes:

* Gross Margin is Total Revenue less Purchases, net of inventory change

** Adjusted Operating Expense is Total Operating Expenses less stock

compensation expense, amortization and depreciation expense, and expense related

to the Nasdaq listing

For further information contact:

Marianne Bøe, Investor Relations

E-mail: [email protected]

Tel: + 47 9180 0186

Derek D'Antilio, Chief Financial Officer

E-mail: [email protected]

Tel: +1 978 273 1344

About IDEX Biometrics

IDEX Biometrics ASA (OSE: IDEX and OTCQB: IDXAF) is a leading provider of

fingerprint identification technologies offering simple, secure and personal

authentication for all.  We help people make payments, prove their identity,

gain access to information, unlock devices or gain admittance to buildings with

the touch of a finger. We invent, engineer, and commercialize these secure, yet

incredibly user-friendly solutions.  Our total addressable market represents a

fast growing multi-billion-unit opportunity.

For more information, visit www.idexbiometrics.com and follow on Twitter

@IDEXBiometrics

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act