IDEX Biometrics ASA — Earnings Release 2023

Aug 10, 2023

IDEX Biometrics ASA interim report for the first half of 2023

IDEX Biometrics ASA interim report for the first half of 2023

Oslo, Norway - 10 August 2023 - IDEX Biometrics ASA's interim report for the

first half of 2023 is attached to this notice (link below). The interim report

is also available on the IDEX Biometrics website:

www.idexbiometrics.com/investors/interim-results/

Webcast

A webcast presentation of the interim report will be held by Vince Graziani,

Chief Executive Officer, today, 10 August 2023, at 09:00 CET. The webcast

presentation can be viewed at the following link:

https://channel.royalcast.com/landingpage/hegnarmedia/20230810_7/

The presentation slides are attached to this notice (link below).

Commercial Update

IDEX Biometrics continues its positive momentum in the second quarter of 2023.

Global demand for secure identity solutions in a digital world is increasing

exponentially, driving demand for biometric technologies. A surge in credential

theft and cyber security incidents around the world forces decision makers to

implement new methods to improve security while improving customer experiences.

This trend is fueling demand for biometric smart card solutions for payments and

access management from IDEX Biometrics, leading to strong second quarter results

for the company.

During the quarter, the IDEX Pay complete solution passed all the required

certification testing by Mastercard for use on its payment network. A formal

Letter of Approval is anticipated in the coming weeks. This milestone provides

smart card manufacturers and end-customers an expedited route to producing fully

certified biometric payment cards, thereby minimizing the need for them to

undertake the entire certification process, which is time-consuming and costly.

We anticipate biometric payment cards based on this solution will stimulate

growth for the entire market, starting in late 2023 and accelerating through

2024 and beyond.

The IDEX Pay complete solution has been selected by 17 card manufacturers and

resellers who will be bringing new biometric payment cards to market. We are

actively engaged in enabling our card manufacturing partners, who collectively

produce over 1.2 billion cards globally each year, to complete their card

certification process and begin production shipments by the fourth quarter of

this year. In the second quarter, IDEX Biometrics received its first production

order for IDEX Pay from a leading European manufacturer, totaling nearly 1

million USD. This scale order includes IDEX biometrics software operating system

and sensor technology will service banks launching biometric cards in

Bangladesh, India and Turkey.

With an increasing number of banks, issuers, and enterprises adopting IDEX

Biometrics, we are uniquely positioned as a leading global biometric technology

provider. Card manufacturers worldwide are planning for biometric card program

launches with their customers. IDEX Biometrics and our eco system partners are

set up to respond to the accelerated demand for biometric payment cards in Asia,

the Middle East, and Europe, as well as for our enterprise access management

solutions across all regions.

Second Quarter Financial Performance

In the second quarter of 2023, IDEX recorded a record $1.5 million of quarterly

revenue. Revenue increased 18% compared to the previous quarter and 32% year-

over-year. For the first six months of 2023, revenues increased 29% compared to

the same period in 2022.

Gross profit margin was 22% for the second quarter of 2023 compared to 26% in

the first quarter of 2023. Gross margin in the second quarter of 2023 was

adversely impacted by inventory adjustments. Absent the inventory adjustments,

gross margin would have been similar to the first quarter of 2023.

Operating expenses, excluding cost of materials and depreciation, were $7.3

million in the second quarter and decreased from the previous quarter. As the

company continues to transition from development to full commercial operations,

further initiatives to streamline operations have been implemented after the

second quarter of 2023. We aim to decrease operating expenses by approximately

30% compared to the first quarter of 2023. The cost reductions will impact the

third quarter and take full effect by the end of 2023. The streamlined

organization and expense optimization are aligned with the company's strategy

and focus on commercial acceleration.

For further information contact:

Marianne Bøe, Head of Investor Relations

E-mail: marianne.boe@idexbiometrics.com

Tel: + 47 918 00186

About IDEX Biometrics

IDEX Biometrics ASA (OSE: IDEX and Nasdaq: IDBA) is a global technology leader

in fingerprint biometrics, offering authentication solutions across payments,

access control, and digital identity. Our solutions bring convenience, security,

peace of mind and seamless user experiences to the world. Built on patented and

proprietary sensor technologies, integrated circuit designs, and software, our

biometric solutions target card-based applications for payments and digital

authentication. As an industry-enabler we partner with leading card

manufacturers and technology companies to bring our solutions to market. For

more information, visit www.idexbiometrics.com.

TRADEMARK STATEMENT

IDEX, IDEX Biometrics and the IDEX logo are trademarks owned by IDEX Biometrics

ASA. All other brands or product names are the property of their respective

holders.

About this notice

This notice was published by Erling Svela, Vice president of finance, on 10

August 2023 at 08:00 CET on behalf of IDEX Biometrics ASA. The information shall

be disclosed according to section 5?6 of the Norwegian Securities Trading Act

(STA) and in accordance with section 5?12 of the STA.