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Precise Biometrics — Earnings Release 2010
Feb 4, 2011
3189_10-k_2011-02-04_c47fd21c-81a3-4e65-8a9f-ec4aa55e06b9.pdf
Earnings Release
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IMPROVED RESULT IN 2010 - NOW PRECISE BIOMETRICS EXPANDS INTO MOBILE SOLUTIONS
Precise Biometrics AB (publ), Corporate Identity No. 556545-6596 Year-end report for the period January – December 2010
- The group's net sales for the financial year was SEK 44.9 million (68.7) and for the fourth quarter SEK 6.3 million (32.1).
- The groups income for the year was SEK‐14.6 million (‐21.8) and for the fourth quarter SEK ‐4.4 million (2.8)
- Earning per share for the year amounted to SEK ‐0.11 (‐0.19) and for the fourth quarter SEK ‐0.03 (0.02).
- Liquid assets at the end of the financial year was SEK 24.5 million (40.9).
Important events during the year
- Nigerian partner Interswitch is rolling out a state ID card with technology from Precise Biometrics. It's the first project of its kind in the world, as the state ID card also includes e‐payment
- Precise Biometric received two follow‐up orders for hardware from an existing customer in the Middle East at a total value of SEK 6.7 million for a Match‐on‐Card project for government employees.
- Precise Biometrics launched several products during the year. Among them a tool for integration of standardized Match‐on‐Card – Precise BioMatch™ ISO Match‐on‐Card; an integration tool for standardized fingerprint recognition for both PC and Mac: Precise BioMatch™ ANSI 378 and a biometric logon solution for Microsoft's new operating system Windows 7, Precise BioMatch™ Logon for Windows 7
- Precise Biometrics has during 2010 reorganized its sales organization due to increase of new business opportunities in combination with developing a more customer oriented organization. The new organization came into full effect January 1, 2011 – and consists of three business units IAM, Access Solutions and Mobile. Mobile is a brand new and strategically important business unit, from which Precise Biometrics will provide solutions for the SmartPhone and TabletPC markets.
Important events after the end of the year
• Precise Biometrics releases a new family of fingerprint readers, Precise Sense™, targeted towards the banking and enterprise segments. The readers focus on cost‐efficiency, user friendliness and a high degree of functionality options.
For further information, please contact Thomas Marschall, President & CEO, Precise Biometrics AB. Telephone +46 46 31 11 10, or +46 734 35 11 10 E-mail [email protected]
Patrik Norberg, CFO, Precise Biometrics AB Telephone +46 46 31 11 47, or +46 734 35 11 47 E-mail [email protected]
Precise Biometrics is a market-leading provider of products and solutions for fingerprint recognition. The technology proves people's identities in a fast and secure way, while it reduces costs related to password management, identity theft and fraud.
Precise Biometrics serves business and government organizations throughout the world and its technology is licensed to close to 100 million users. Precise Biometrics is listed on NASDAQ OMX Stockholm small cap list (PREC).
For more information, please visit www.precisebiometrics.com.
New organization for 2011 will strengthen Precise Biometrics' growth
- Interview with Thomas Marschall, CEO and President, Precise Biometrics
How would you summarize 2010?
During the course of 2010 we established a strategic platform for the future development of Precise Biometrics. From this platform we have prepared an ambitious business plan to the year 2015 and developed a new customer‐oriented organization. We have also cultivated and packaged our world‐leading technology to clarify how we solve specific problems for our customers.
We are not satisfied with the result in 2010 as the sales level has been low. The trend in improvement of annual result has however continued, as a result of higher margins in combination with greater cost‐efficiency.
How will your new business plan make an impact in the time ahead?
Our "Plan 2015" will steer our development for several years to come, but already in 2011 we will implement a series of activities linked to the plan. Starting this year, this work will be taking place within the framework of a new organization.
As an overall ambition we have already indicated that Precise Biometrics will qualify for quotation on the Nasdaq OMX Mid Cap list in 2015. For this to happen we need to expand and develop within our chosen segments and achieve a valuation of at least SEK 1.5 billion according to current listing regulations. This corresponds to five times the present valuation, which is an ambitious target, but entirely realistic considering the great potential we have identified for biometrics in the business plan.
Which areas will you be focusing on?
Our new organization involves investment in three specific segments where Precise Biometrics can offer complete solutions to meet growing demand in the market.
First and foremost we have identified a completely new business area which we have called Mobile. This segment will focus on the significant business potential for biometric due to the rapid development of Smart Phone and Tablet PC. Initially we will be focusing on Apple's platform, including solutions for iPhone and iPad, but our objective is to supply products and solutions for all the larger SmartPhone platforms in the market. We plan to launch new products and solutions during the second half of 2011. We have called the second business area IAM (Identity and Authentication Management) and this accommodates the main part of our existing business operations and sales. This business area covers solutions for national ID cards and government agencies, banks, corporations, and embedded solutions. The strategy here is to develop the world‐leading position the Company already holds and to expand its market shares in the ID card segments, mainly through already established partners.
The third business area Access Solutions is based on the success we have achieved with companies that offer their customers and members access to services and buildings with fingerprint recognition. This is used, for example, in 24‐hour gyms with a minimum of personnel. Access Solutions also includes security solutions to the Aviation sector and other areas. What these solutions have in common is that they address
tangible problems and create extra value for customers such as greater efficiency, higher potential earnings, or reduced costs. This year we will actively target prospective customers in Europe that can benefit from our concept.
What will the new areas mean in terms of profitability?
The objective is of course that they will have a major impact on profitability. We are expecting IAM to achieve profitability in 2011, and it is possible that Access Solutions will also achieve profitability in 2011.
As indicated earlier ‐ in order to make a meaningful assessment of the company's development it is necessary to look at the full year development rather than individual quarterly results. This is because we still rely on individual large orders which cause sales to fluctuate substantially between quarters. We believe that the expansion into the mobile segment will not only strengthen our growth but also even out the fluctuations between quarters.
Our reporting to the capital market will from the first quarter of 2011 be based on these new business areas, so that it will be easy to follow the individual business unit's developments.
How do you see Precise Biometrics developing in 2011 and onwards?
I am convinced that 2011 is going to be Precise Biometrics' best year so far. I am expecting the positive development from previous years to continue, but above all I am counting on excellent results within the framework of our "Plan 2015".
Our strategy for future growth includes major investments during 2011 in new product solutions within the new Mobile business unit. Orders for national ID cards are expected within the IAM business area, and we also expect to increase sales in all areas through our advanced offers and by recruiting sales staff both in Europe and the US.
We will be expanding our development organization so that our competence corresponds to the demands encountered in the new areas. Among other things we will be launching more new products and solutions than ever before during one year, including a new product family of fingerprint readers targeted at the bank and enterprise sector – Precise Sense™. We will also be introducing a new embedded solution that can be integrated into several different contexts, where biometrics can add value.
All in all, I am looking forward to a year with many new and exciting opportunities for Precise Biometrics!
Sales and result
The financial year 2010
Sales for the financial year amounted to SEK 44.9 million (68.7). The gross profit was SEK 27.5 million (35.8). The gross margin was 61% (52). The gross margin improves due to a more favorable sales mix combined with higher margins on hardware sales.
Operating expenses for the financial year were SEK 42.0 million (51.1). The group's net loss for the financial year amounted to SEK ‐14.6 Million (‐21.8).
Losses per share (average number of shares) for the period amounted to SEK ‐0.11 (‐0.19).
Fourth quarter October ‐ December 2010
Sales for the financial year amounted to SEK 6.3 million (32.1). The gross profit was SEK 4.2 million (16.3). The gross margin was 66 % (51). The gross margin improves due to a more favourable sales mix combined with higher margins on hardware sales.
Operating expenses for the financial year were SEK 8.6 million (13.0). The group's net loss for the financial year amounted to SEK‐ 4.4 million (2.8).
Losses per share (average number of shares) for the period amounted to SEK ‐0.03 (0.02).
Financing and liquidity
As of December 31, 2010 equity amounted to SEK 31.2 million (45.4) and equity/share to SEK 0.23 (0.34).
Cash flow from current operations during the year amounted to SEK ‐10.1 million (‐21.2). Liquid assets at the end of the financial year amounted to SEK 24.5 million (40.9).
Cash flow from current operations for the fourth quarter amounted to SEK ‐4.0 million (‐4.6).
Market and sales – summarizing 2010
Sales during the fourth quarter and the full year have been characterized by a combination of fingerprint readers and license sales. A large part of the sales have been to existing customers, such as the two hardware orders to an existing customer in the Middle East. The two orders comprised hardware at a value of SEK 6.7 million. The hardware will be used in an expansion of an ID‐card program for government employees.
An important event during the year was the launch of a state ID card program for the Nigerian state Cross River State. The state ID card program is the first of its kind in the world and a breakthrough for Precise Biometrics in Africa. The purpose is to implement biometric technology and combine authentication and payment in a state‐wide 'Smartcity' card. In the coming years, all citizens in Cross River State, close to 3 million people, will be issued a card.
During 2010, Precise Biometrics also received an important order from our partner OKI. OKI has supplied circuits with Precise Biometrics' technology to a government project in Asia where a token with fingerprint technology will be used to identify employees.
Precise Biometrics has during 2010 continued to launch new products and solutions. Several of product launched during the year has focused on standardization. Among them a tool for
integration of standardized Match‐on‐Card – Precise BioMatch™ ISO Match‐on‐Card; and an integration tool for standardized fingerprint recognition for both PC and Mac: Precise BioMatch™ ANSI 378.
A biometric logon for Windows 7 was also launched during the spring. With Microsoft's Windows 7 there is an increased focus on fingerprint recognition and usability. The logon application offers a convenient way of personalizing the access to your computer and files using your fingerprint.
Precise Biometrics is currently involved in several projects outside the traditional sales channels. These new projects are primarily found within the mobile phone sector, various embedded solutions and banking solutions. As a consequence of this and in combination of developing a more customer oriented organization, Precise Biometrics has reorganized its sales organization into three business units IAM, Access Solutions and Mobile. Please see the interview with CEO Thomas Marschall on page 2 for a more thorough description of the new organization. The new units have come into effect January 1, 2011 and will be officially reported as of Q1 2011.
Parent company
Parent company sales for the financial year amounted to SEK 38.8 million (57.4). Operating loss before tax for the financial year amounted to SEK ‐16.3 million (‐23.8).
Parent company sales for the fourth quarter amounted to SEK 5.5 million (31.1). Operating loss before tax for the fourth quarter amounted to SEK ‐3.8 million (3.9).
Liquid assets at the end of the financial year amounted to SEK 21.1 million (28.5).
Organization and employees
The parent company of Precise Biometrics has its head office in Lund, Sweden. The organization also consists of the subsidiaries Precise Biometrics Inc. in Washington DC, USA, and Precise Biometrics Solutions AB with office in Karlstad. The subsidiary in Asia, Precise Biometrics Asia Ltd. was closed during the fourth quarter. The organization also includes the dormant company Precise Biometrics Services AB.
As of December 31, 2010 the group had 34 (36) employees, 33 in Sweden and 1 in the US. Of these employees, 24 (26) were men and 10 (10) were women.
Investments in tangible fixed assets
During the financial year the group has invested SEK 0.2 million (0.0) in tangible fixed assets.
In the fourth quarter the group invested SEK 0.2 million (0.0) in tangible fixed assets
Capitalization and depreciation of development work
Development work cost of SEK 4.5 million (1.3) were capitalized during the financial year. Depreciation and write‐downs of capitalized costs for development work amounted to SEK 1.6 million (2.2) during the financial year, of which write‐downs accounted for SEK 0.3 million (0.1).
During the fourth quarter development work costs of SEK 2.2 million (0.3) were capitalized. Depreciation and write‐downs of capitalized costs for development work amounted in the quarter to SEK 0.5 million (0.4), of which write‐downs accounted for SEK 0.3 million (0.1).
Patents
The group's long‐term patent strategy has focused on establishing strong protection round the Precise Match‐on‐Card™ technology. The patents portfolio has been strengthened since 2001 and at the end of the financial year includes 68 registered and 28 applications for patents in 17 different product families. Precise Biometrics has 10 different patent families for the Match‐on‐Card technology alone.
The share
The company's share is listed on the Small Cap list of the Nasdaq OMX Nordic.
The total number of registered shares at the end of the financial year was 134,960,800.
During the financial year the average turnover per day was SEK 1,949 thousand and the list price ranged from SEK 1.40 to 2.58.
During the fourth quarter the average turnover per day was SEK 2,922 thousand and the list price has ranged from SEK 1.64 to 2.55.
The main shareholders as of December 31, 2010
| Name | Percentage of share stock No. of shares | ||
|---|---|---|---|
| Avanza Pension Försäkring AB | 9.1% | 12,282,294 | |
| Swedbank Robur fonder | 3.9 % | 5,315,932 | |
| Stockpicker fonder | 2.7% | 3,615,704 | |
| Nordnet Pensionsförsäkring AB | 2.2 % | 2,925,252 | |
| HJ Byggkonsulter AB | 1.7% | 2,300,000 | |
| Source: SIS Ägarservice |
Nomination committee
Following a decision at the Annual General Meeting on April 21, 2010 a Nomination Committee shall be organized. The Nomination Committee shall consist representatives from each of the three major shareholders per August 31, 2010 as well as the Chairman of the Board.
Accordingly the Nomination Committee consists of Kerstin Stenberg (Swedbank Robur fonder) Per Bernhult (Stockpicker fonder) and Uno Johnsson (HJ Byggkonsulter AB).
The Chairman of the Board, Lisa Thorsted, is also represented in the Nomination Committee, and is the convener.
Risk factors
Precise Biometrics is exposed to both commercial and financial risks, which to a large extent lie outside the reach and influence of the company. For a full account of identified risks, please refer
to the Annual Report for 2009, which was submitted April 1, 2010. No further essential risks or uncertainties have arisen after the submission of the Annual Report.
Future report dates
| Interim report Q1 | April 27, 2011 |
|---|---|
| Interim report Q2 | July 19, 2011 |
| Interim report Q3 | October 25, 2011 |
| Year‐end report | February 3, 2012 |
General Annual Meeting
The general annual meeting for Precise Biometrics AB (publ) will be held on Wednesday April 27, 2011 at 16.00 at Precise Biometrics' headquarters in Lund, Scheelevägen 30.
Annual Report
The Annual Report will be available in an electronic format in the beginning of April on www.precisebiometrics.com.
Information on when the annual report is published can be asked for from Precise Biometrics via telephone +46 46 31 11 00, fax +46 46 31 11 01 or email [email protected]. No printed version will be distributed but it will be possible to print the report from the website.
Accounting principles
This year‐end report has been prepared in accordance with IAS 34, Interim reporting and the Swedish Company Accounts Act.
New IFRS, additions to IAS and IFRIC interpretations taking effect January 1, 2010, did not have a material effect on the financial statements.
For information on the applied accounting principles please refer to the Annual Report for 2009.
The Board of Directors proposes that there will be no dividends paid out.
Lund, February 3, 2011
The Board of directors
Lisa Thorsted, Chairman
Marc Chatell Torbjörn Clementz Lena Widin Klasén Eva Maria Matell
Thomas Marschall, President and CEO
Review report
We have conducted a general review of the year‐end report for Precise Biometrics AB (publ) for the period January 1, 2010 to December 31, 2010. It is the responsibility of the board members and CEO to prepare and present this interim report fair in accordance with the Annual Accounts Act and IAS 34. Our responsibility is to express an opinion on this interim report based on our general review.
We have conducted our general review in accordance with the Swedish Standard for general reviews SÖG 2410 General review of financial interim information conducted by the company's auditors. A general review consists of making enquiries, in the first instance to persons who are responsible for financial issues and accounting issues, to conduct an analytic review and to take other general review measures. A general review has a different focus and is of a significantly smaller scope in comparison with the focus and scope of an audit in accordance with the Standards on Auditing in Sweden (RS) and otherwise generally accepted auditing standards. The review measures taken during a general review do not allow us to acquire a sufficient degree of certainty so as to be aware of all the important circumstances we would have identified if an audit was conducted. The opinion we have expressed on the basis of a general review therefore does not have the degree of certainty that an opinion based on an audit has.
On the basis of our general review we have not found any circumstances that have given us reason to believe that the interim report has not in all essential respects been prepared in accordance with the Annual Accounting Act and IAS 34.
Lund, February 3, 2011
Öhrlings PricewaterhouseCoopers AB
Eva Carlsvi Ola Bjärehäll Authorized public accountant Authorized public accountant Auditor in charge
Precise Biometrics AB (publ) may be required to disclose the information provided herein pursuant to the Securities Markets Act. The information was submitted for publication at 09.00 on February 4, 2011.
Income statement, Group
| (Figures in thousands SEK) | Q4 | Q4 | Full year | Full year |
|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | |
| Net sales | 6,338 | 32,147 | 44,944 | 68,655 |
| Cost of goods sold | -2,131 | -15,856 | -17,425 | -32,863 |
| Gross profit/loss | 4,207 | 16,291 | 27,519 | 35,792 |
| Selling expenses | -4,766 | -7,720 | -18,293 | -30,445 |
| Administrative expenses | -2,624 | -3,005 | -10,012 | -12,554 |
| R&D costs | -1,319 | -3,016 | -12,526 | -12,092 |
| Other operating income and changes in value | 110 | 734 | -1,185 | -977 |
| -8,599 | -13,007 | -42,016 | -56,068 | |
| Operating result | -4,392 | 3,284 | -14,497 | -20,276 |
| Financial costs | -11 | -476 | -135 | -1,492 |
| Result after financial items | -4,403 | 2,808 | -14,632 | -21,768 |
| Tax | -16 | -4 | -16 | -4 |
| Result for the period | -4,419 | 2,804 | -14,648 | -21,772 |
| Result attributable to: | ||||
| Owners of the parent | -4,419 | 2,804 | -14,648 | -21,772 |
| Results per share, SEK | -0.03 | 0.02 | -0.11 | -0.19 |
Comprehensive income, Group (according to IAS 1)
| (Figures in thousands SEK) | Q4 | Q4 | Full year | Full year |
|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | |
| Change in accumulated exchange rate differences | 408 | 116 | 334 | 621 |
| Reverse of accumulated exchange rate differences in disposed subsidiary |
-52 | - | 150 | - |
| Comprehensive income for the period, net of tax | 356 | 116 | 484 | 621 |
| Profit/loss for the period | -4,419 | 2,804 | -14,648 | -21,772 |
| Total comprehensive income for the period | -4,063 | 2,920 | -14,164 | -21,151 |
| Total comprehensive income attributable to: | ||||
| Owners of the parent | -4,063 | 2,920 | -14,164 | -21,151 |
Balance Sheet, Group
| (Figures in thousands SEK) | 12/31/2010 | 12/31/2009 | |
|---|---|---|---|
| Assets | |||
| Intangible fixed assets | 6,664 | 3,802 | |
| Tangible fixed assets | 704 | 868 | |
| Inventories | 8,402 | 6,047 | |
| Accounts receivable - trade | 4,968 | 16,758 | |
| Other current receivables | 2,809 | 4,734 | |
| Cash and bank balances | 24,544 | 40,884 | |
| Total assets | 48,091 | 73,093 | |
| Equity and liabilities | |||
| Equity | 31,244 | 45,408 | |
| Current liabilities | 16,847 | 27,685 | |
| Total equity and liabilities | 48,091 | 73,093 | |
| Pledged assets | 26,400 | 26,400 | |
| Contingent liabilities | - | - |
Cash Flow Statement, Group
| (Figures in thousands SEK) | Q4 | Q4 | Full year | Full year |
|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | |
| Cash flow from operating activities | ||||
| before changes in working capital | -3,627 | 3,259 | -12,919 | -14,276 |
| Cash flow from changes in working capital | -402 | -7,908 | 2,781 | -6,931 |
| Cash flow from operating activities | -4,029 | -4,649 | -10,138 | -21,207 |
| Cash flow from investing activities | -2,333 | -309 | -4,710 | -1,299 |
| Cash flow from financing activities | 0 | -13,479 | -1,492 | 52,047 |
| Cash flow for the period | -6,362 | -18,437 | -16,340 | 29,541 |
| Liquid funds at the beginning of the period | 30,906 | 59,321 | 40,884 | 11,343 |
| Liquid funds at the end of the period | 24,544 | 40,884 | 24,544 | 40,884 |
Key Figures, Group
| 12/31/2010 | 12/31/2009 | |
|---|---|---|
| Working capital (thousands SEK) | 23,876 | 40,738 |
| Liquid ratio | 192% | 225% |
| Equity/assets ratio | 65% | 62% |
| Return on average equity | neg | neg |
| Capital employed (thousands SEK) | 32,494 | 46,900 |
| Return on capital employed | neg | neg |
| Profit/loss per share (SEK) | -0.11 | -0.19 |
| EBITDA (thousands SEK) | -12,485 | -12,662 |
| Equity per share (SEK) | 0.23 | 0.34 |
| Number of shares | 134,960,800 | 134,960,800 |
| Number of employees at the end of the period | 34 | 36 |
| Average number of employees during the period | 34 | 38 |
Definitions - Key Figures
Working capital: Current assets less current liabilities
Liquid ratio: Current assets less inventories divided by current liabilities
Equity/assets ratio: Equity as of the balance sheet date divided by total assets as of the balance sheet date
Return on equity: Profit/loss for the period divided by average equity
Capital employed: Balance sheet total minus non-interest-bearing liabilities and provisions
Return on capital employed: Profit/loss after financial items plus financial expenses divided by the
average capital employed
Profit/loss per share: Profit/loss after tax divided by the average number of shares. The options are not included in the calculation due to calculation of potential shares would result in an improvement in loss per share which is not permitted according to IAS 33 EBITDA: Profit/loss before net financial items, depreciations, write-downs and tax
Equity per share: Equity at the end of the period divided by the number of shares at the end of the period Quarterly earnings ratios are not disclosed
Operating costs (as described in Sales and result): Operating costs excluding costs for products sold, participations in associated companies and goodwill write-down, but including depreciation and write-downs and after capitalization of costs for development work
Changes in equity, Group
(Figures in thousands SEK)
| Balanced | |||||
|---|---|---|---|---|---|
| Capital | Other paid in | Reserves | profit/ | Total | |
| stock | capital | year's profit | equity | ||
| Opening balance as at January 1, 2009 | 40,488 | 500,155 | -466 | -524,173 | 16,004 |
| Comprehensive income for the period | - | - | 621 | -21,772 | -21,151 |
| Transactions with the shareholders | |||||
| Stock option program1) | - | -77 | - | - | -77 |
| New share issue2) | 13,496 | 37,136 | - | - | 50,632 |
| Closing balance as at December 31, | |||||
| 2009 | 53,984 | 537,214 | 155 | -545,945 | 45,408 |
| Opening balance as at January 1, 2010 | 53,984 | 537,214 | 155 | -545,945 | 45,408 |
| Comprehensive income for the period | - | - | 484 | -14,648 | -14,164 |
| Closing balance as at December 31, 2010 |
53,984 | 537,214 | 639 | -560,593 | 31,244 |
1) Repurchase of 450,000 share options.
2) New share issue totalling 33 740 200 new shares at a rate of SEK 1.60 with deductions for issue costs .
Turnover and profitability by Regions Q4 2010
| (Figures in thousands | Middle East | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK) | North America | Europe | & Africa | Asia | |||||
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | ||
| Net sales | 993 | 24,120 | 4,051 | 3,156 | 1,080 | 3,890 | 26 | 1 | |
| Expenses1) | -6,182 | -16,298 | -3,582 | -2,890 | -1,508 | -1,074 | 0 | -796 | |
| Operating profit/loss | -5,189 | 7,822 | 469 | 266 | -428 | 2,816 | 26 | -795 |
| Latin America | Other | Total | ||||||
|---|---|---|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | |||
| Net sales | 188 | 980 | - | - | 6,338 | 32,147 | ||
| Expenses1) | - | -3 | -267 | 274 | -11,539 | -20,787 | ||
| Operating profit/loss | 188 | 977 | -267 | 274 | -5,201 | 11,360 |
Turnover and profitability by Regions full year 2010
| (Figures in thousands SEK) |
Middle East North America Europe & Africa Asia |
|||||||
|---|---|---|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | |
| Net sales | 21,414 | 38,075 | 12,316 | 14,121 | 8,458 | 11,265 | 1,678 | 1,038 |
| Expenses1) | -21,337 | -26,193 | -9,087 | -13,338 | -8,006 | -6,427 | -333 | -3,173 |
| Operating profit/loss | 77 | 11,882 | 3,229 | 783 | 452 | 4,838 | 1,345 | -2,135 |
| Latin America | Other | Total | ||||
|---|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | |
| Net sales | 1,078 | 4,156 | - | - | 44,944 | 68,655 |
| Expenses1) | - | -10 | 231 | 86 | -38,532 | -49,055 |
| Operating profit/loss | 1,078 | 4,146 | 231 | 86 | 6,412 | 19,600 |
1) The above expenses in Regions include Cost of goods sold as
well as operation expenses for each region.
Income statement, Parent company
| (Figures in thousands SEK) | Full year | Full Year | |
|---|---|---|---|
| 2010 | 2009 | ||
| Net sales | 38,825 | 57,397 | |
| Cost of goods sold | -21,957 | -28,493 | |
| Gross profit/loss | 16,868 | 28,904 | |
| Selling expenses | -14,409 | -20,562 | |
| Administrative expenses | -9,012 | -10,390 | |
| R&D costs | -7,232 | -12,092 | |
| Other operating income and changes in value | -2,831 | -3,174 | |
| -33,484 | -46,218 | ||
| Operating result | -16,616 | -17,314 | |
| Financial costs1) | 349 | -6,507 | |
| Result after financial items | -16,267 | -23,821 | |
| Tax | - | - | |
| Result for the period | -16,267 | -23,821 |
1) Include a write-down of the value in the subsidiary Precise Biometrics Solutions AB amounting SEK 5.5 million in 2009
Balance Sheet, Parent company
| (Figures in thousands SEK) | 12/31/2010 | 12/31/2009 |
|---|---|---|
| Assets | ||
| Intangible fixed assets | 6,548 | 3,655 |
| Tangible fixed assets | 381 | 479 |
| Participations in group companies | 1,058 | 1,058 |
| Inventories | 8,402 | 6,047 |
| Accounts receivable - trade | 2,810 | 6,176 |
| Other current receivables | 33,403 | 54,865 |
| Cash and bank balances | 21,129 | 28,494 |
| Total assets | 73,731 | 100,774 |
| Equity and liabilities | ||
| Equity | 63,086 | 79,763 |
| Other provisions | 162 | 284 |
| Current liabilities | 10,483 | 20,727 |
| Total equity and liabilities | 73,731 | 100,774 |
| Pledged assets | 24,000 | 24,000 |
| Contingent liabilities | 2,000 | 2,000 |
Telephone conference
On the occasion of today's year‐end report we have the pleasure to invite investors and journalists to the following informative meeting during the day
- The conference starts at 11:00 (CET)
- To participate, please call + 46 (0)8 506 853 32
An operator will note your name and connect you to the conference. She/he will also provide you with information about what to do if you have any questions.
The presentation will be held in English but afterwards there will be an opportunity to ask questions in Swedish.
Participating on behalf of Precise Biometrics
- Thomas Marschall, President and CEO
- Patrik Norberg, CFO
A recording from the conference will be available for three days after the telephone meeting. To listen to the conference afterwards dial +46 (0)8 506 269 49. When asked to state a reference number please dial 251811 and finish with (#).
Please visit www.precisebiometrics.com/presentations where a presentation can be downloaded.
For further information
Thomas Marschall, President and CEO, Precise Biometrics Tel. +46 46 31 11 10 or +46 734 35 11 10 E-mail [email protected]
Patrik Norberg, CFO, Precise Biometrics AB Tel. +46 46 31 11 47 or +46 734 35 11 47 E-mail [email protected]
Precise Biometrics AB (headquarters) Box 798 SE-220 07 Lund Tel. +46 46 31 11 00 Fax: +46 46 31 11 01 E-mail: [email protected]
Precise Biometrics is a market-leading provider of products and solutions for fingerprint recognition. The technology proves people's identities in a fast and secure way, while it reduces costs related to password management, identity theft and fraud.
Precise Biometrics serves business and government organizations throughout the world and its technology is licensed to close to 100 million users. Precise Biometrics is listed on NASDAQ OMX Stockholm small cap list (PREC).
For more information, please visit www.precisebiometrics.com.