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Precise Biometrics — Interim / Quarterly Report 2009
Jul 21, 2009
3189_ir_2009-07-21_0dfd814a-221f-4432-85ef-6c99edb1fda2.pdf
Interim / Quarterly Report
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Page 1 of 18
Lund, July 21, 2009
STRONG GROWTH FIRST TWO QUARTERS AND MAJOR ORDER AFTER END OF PERIOD
Precise Biometrics AB (publ), Corporate Identity No 556545-6596 Interim report for the period January – June 2009
- The group's net sales for the interim period amounted to SEK 21.9 million (17.9) and for the second quarter SEK 9.7 million (8.9).
- The group's income for the interim period amounted to SEK ‐11.6 million (‐18.4) and for the second quarter SEK ‐9.0 million (‐7.7).
- Earnings per share for the interim period amounted to SEK ‐0.11 (‐0.18) and for the second quarter SEK ‐0.09 (‐0.08).
- Liquid assets at the end of the interim period amounted to SEK 1.5 million (15.7). The company has used SEK 6.0 million of the SEK 15 million credit facility obtained in 2008. Additional SEK 5.0 million of the credit facility have been used as a guarantee in current hardware production.
- Together with Gemalto, the world largest smart card provider, Precise Biometrics introduced Gemalto .NET Bio in April. The product which is targeted towards corporations and organizations enables secure and efficient logon to computers and networks using Precise Match‐on‐Card™.
- Precise Biometrics received a follow‐up order at a value of SEK 2.1 million from an existing government customer in the Middle East. The order comprises both hardware and software, which will be used in the further deployment of the government's ID card program for employees.
Significant events after the quarter
• After the end of the period Precise Biometrics received a significant order at a value of approximately SEK 48 million from the US Government. The order comprises both hardware and software to several government agencies within the framework of Cyber Security. The order will be delivered and invoiced before the end of 2009.
For further information
Thomas Marschall, President and CEO, Precise Biometrics AB Tel. +46 (0)46 31 11 10 or +46 (0) 734 35 11 10 E-mail [email protected]
Patrik Norberg, CFO, Precise Biometrics AB Tel. +46 (0)46 31 11 47 or +46 (0) 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 or view the Company presentation.
Strong growth and major order after end of period
- Comments on the quarterly report by the CEO, Thomas Marschall
Tell us about the company's development during the first six months?
We show total revenue of about SEK 22 million during the first six months, which is a 23% improvement compared to the same period last year. This improvement is in spite of the turbulent world economy. We have been able to present several positive points during these two quarters. At the same time, negotiations and agreements have taken longer than expected to finalize because of the weakness in the economy. We are considered a stable and reliable supplier, which is proven by the fact that we receive important repeat orders – most recently from a government customer in the Middle East that has very high security requirements.
You received a major order from the US government after the end of the period, which got a lot of attention in the media. How important is this order?
This order is larger than the whole of last year's turnover for the company, so it is very important for us both in the short term, in relation to cash flow, and in the longer term, as a door opener to more business. We see this US government customer as the best reference we could have. The background to the order is the largely increased focus on Cyber Security in the USA, where big investments are being made, for example, in protecting IT related to critical national infrastructures. The order is dominated by delivery to one specific agency but the total order value also includes deliveries to a few other government agencies, also for Cyber Security purposes. Considering that the USA is typically the forerunner in matters of this nature, I anticipate that this decision will lead to Match‐on‐Card technology in this context spreading to other countries as well. There is also a continued up‐sell potential in the USA.
The US order comprises a significant volume of hardware. Are you shifting your previously communicated sales strategy from license sales to hardware sales? The driver of our long term strategy remains software. However, in large projects there is a natural time lag from the customer's decision to implement a smart card solution and Match‐ on‐Card to the placement of orders for large volumes of fingerprint readers. Hardware sells because of software and supports it as well. Therefore, it will be a solid business contribution in short and medium term.
How do you view the remaining part of the year?
We are continuing work on several interesting business opportunities. It is difficult to predict how long each negotiation will take – this is why we are working on so many opportunities in parallel. However, we believe the most interesting development during the second half of the year will come from business in the market segments Bank and Aviation, as well as considerable after‐market sales potential in one of the countries where we have delivered Match‐on‐Card for the national ID card.
The strategy going forward?
Based on the recent US order, we now have good conditions for fulfilling our objective communicated 2.5 years ago, which is to stop the losses and make the company profitable during 2009. Going forward, we will take Precise Biometrics' technology to several vertical
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segments and more geographical markets. Our technology is now established and sufficiently proven. The key differentiating factors, which are areas of application and usability, are clear.
The strategy for the company now is to move forward with even more powerful sales and marketing efforts to win profitable orders, while focusing long‐term on usability and user‐ friendliness.
An example of usability is the compliance of Match‐on‐Card with the upcoming Windows 7. At the RSA Conference in the US we were the first to demonstrate such compliance earlier in the year. We are also working on initiating collaborations with new partners within Corporate ID.
Given your current liquidity, how do you see the need for capital?
We previously announced that we would not turn to our shareholders for more capital until we are profitable. With this US government order, we believe we are very close to keeping our promise to achieve profitability. However, the process concerning financing of the US order has made it clear that there is a need for capital to be able to handle future expected hardware orders of similar size and significance. Partly since the possibilities to obtain order financing from the banks have radically changed for the worse during the past nine months because of the current financial climate, partly since suppliers and contractors demand increasingly bigger upfront payments, which strains liquidity. We are also preparing for more powerful market and sales activities in several geographical markets and in certain vertical segments. At present, we do not see any further need to increase investment in continued research and development of our core technology, which is both well‐proven and market dominating. Our development focus now relates to packaging and application.
How do you see on issuing new shares?
To be able to maintain a high growth rate and make the next phase of the company's development possible, the working capital has to be reinforced. We are considering different scenarios for how to make this happen and it is a question that the Board at present is evaluating in discussions with the major shareholders of the company.
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Sales and net profit
Interim period; January to June 2009
Sales for the interim period amounted to SEK 21.9 million (17.9). The gross profit is SEK 14.3 million (7.8), a significant increase of 82 %.The gross margin amounted to 65 % compared to 44 % the same period the previous year. The gross margin is improved due to a higher share of license sales. The group's net loss for the interim period amounted to SEK ‐11.6 million (‐18.4). Operating expenses for the interim period, excluding costs of goods sold and participations in associated companies, amounted to SEK 25.6 million (25.5), including depreciation and write‐ downs of SEK 1.4 million (1.4) and capitalization of development costs SEK 0.6 million (1.1). Earnings per share (average number of shares) for the interim period amounted to SEK ‐0.11 (‐ 0.18).
Second quarter; April‐June 2009
Sales for the second quarter amounted to SEK 9.7 million (8.9). The gross margin was 60 % compared with 43 % during the corresponding period in the previous year. The Group's net loss for the second quarter amounted to SEK ‐9.0 million (‐7.7). Operating expenses, excluding cost of goods sold and participations in associated companies, amounted to SEK 14.8 million (11.3), including depreciation and write downs of SEK 0.7 million (0.7) and capitalization development costs of SEK 0.3 million (0.4). Earnings per share (average number of shares) for the second quarter amounted to SEK ‐0.09 (‐0.08).
Financing and liquidity
As of June 30, 2009, equity amounted to SEK 4.4 million (53.5) and equity per share to SEK 0.04 (0.53).
Cash flow from current operations amounted to SEK ‐8.5 million (‐9.4). Liquid assets at the end of the interim period amounted to SEK 1.5 million (15.7).
The company has during the second quarter utilized SEK 6.0 million of the total credit facility of SEK 15.0 million that was obtained during 2008. Additional SEK 5.0 million of the credit facility have been used as a guarantee in current hardware production.
Geographical markets and sales – events during the second quarter
The most significant event during the second quarter of the year was the ongoing procurement of Precise 200 MC by an American governmental agency, with a requested volume of 47,000 units. After the bidding process closed, a Live Demonstration Test was conducted, among other things, in which Precise Biometrics and all other bidding suppliers had to demonstrate their products' compliance with the IT systems. After the end of the quarter, Precise Biometrics announced that it had been awarded the order.
Other interesting events in the quarter included Precise Biometrics' participation at the RSA Conference 2009 in San Francisco in April. The RSA Conference is the most important annual IT security event. At the conference, Precise Biometrics participated in Gemalto's and Microsoft's booths in the exhibition hall. In the Microsoft booth, the world's first Match‐on‐Card solution for the new Windows 7 operating system was presented. The Match‐on‐Card solution is based on the Gemalto .NET Bio smart cards and Precise Match‐on‐Card™, which efficiently combine the Windows Biometric Framework and the Windows Smart Card Framework. This offers a secure, reliable and very user‐friendly card‐based biometric solution that integrates extremely well with Microsoft's Windows environment. The demonstration generated a lot of interest during the conference. Gemalto .NET Bio for Windows 7 is planned for commercial launch at the time of official release from Microsoft in October 2009.
Sales during the quarter have primarily originated from repeat orders from an existing government customer in the Middle East and recurring license revenue from smart card partners. Several interesting pilot projects with great potential have also been started (e.g., with a number of European governments).
Parent company
Parent company sales for the interim period amounted to SEK 16.8 million (12.5). Operating loss before tax for the interim period amounted to SEK ‐9.4 million (‐24.2).
Parent company sales for the second quarter amounted to SEK 6.5 million (6.0). Operating loss before tax for the second quarter amounted to SEK ‐10.5 million (‐12.7).
At the end of the interim period 25 persons were employed in the parent company.
Liquid assets at the end of the second quarter amounted to SEK 1.4 million (13.4). The company has during the second quarter utilized SEK 6.0 million of the total credit facility of SEK 15.0 million that was obtained during 2008. Additional SEK 5.0 million of the credit facility have been used as a guarantee in current hardware production.
Investments in tangible fixed assets amounted to SEK 0.0 million (0.2).
During the interim period development costs of SEK 0.5 million (1.1) were capitalized, SEK 0.3 million (0.4) during the second quarter.
Organization and staff
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, Precise Biometrics Asia Ltd. in Hong Kong and Precise Biometrics Solutions AB with offices in Karlstad. The dormant companies Precise Biometrics Services AB and Loqware Sweden AB (bankruptcy proceeding initiated) are also part of the group. During the second quarter Precise Biometrics UK Ltd. was deregistered.
As of June 30, 2009, the group had 35 (42) employees, 33 in Sweden, 1 in the US and 1 in Hong Kong. Of these employees, 26 (32) were men and 9 (10) were women. After a evaluation of the consultant business in the subsidiary Precise Biometrics Solutions AB, the group has decreased the number of employees by 6 during the second quarter 2009.
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Lund, July 21, 2009
Investments in tangible fixed assets
During the interim period, the group invested SEK 0.0 million (0.2) in tangible fixed assets.
In the second quarter the group invested SEK 0.0 million (0.1) in tangible fixed assets
Capitalization and depreciation of development work
Development work costs of SEK 0.6 million (1.1) were capitalized during the interim period. Depreciation of capitalized costs for development work amounted to SEK 0.7 million (1.0) during the interim period.
During the second quarter development costs of SEK 0.3 million (0.4) were capitalized. Depreciation of capitalized development costs amounted to SEK 0.4 million (0.5) during the quarter.
Patents
The group's long‐term patent strategy focuses on rigidly safeguarding the Precise Match‐on‐Card™ core technology. The patents portfolio has been gradually expanded since 2001 and at the end of the second quarter of 2009 included 72 registered patents and 34 applications for patents in 22 different product families. Precise Biometrics has 13 different patent families for the Match‐on‐Card technology alone.
The Annual General Meeting
In accordance with the recommendations of the board of directors, the stockholder's meeting resolved to authorize a new issue to a maximum of SEK 4 million, or 10 million shares, with a provision for issue against subscription in kind. The purpose of this authorization was to enable the Company to conduct the acquisition of companies with payment in full, or in part, with its own shares.
In accordance with the proposal of the board, the Annual General Meeting resolved to change the way to publish the notice to attend to the Annual General Meeting in §9 in the articles of association, meaning that such notice shall be convened through announcements posted in the Post‐ och Inrikes Tidningar newspaper and the company website. An ad will be placed in the Svenska Dagbladet newspaper to indicate that a summons was issued. The decision on the changes in the articles of association indicated above shall be conditional on a change to the Swedish Companies Act (SFS 2005:551) regarding summons to stockholders meetings being put into effect, as the new wording of 9 § proposed above is intended to ensure compliance with the change to the Swedish Companies Act.
Marc Chatel, Eva Maria Matell, Lisa Thorsted and Lena Widin Klasén were re‐elected as members of the board, whilst Jan T. Jørgensen has declined re‐election. Lisa Thorsted was elected chairman of the board and Torbjörn Clementz was elected as new member of the board.
The stock
The company's shares have been listed on the O‐list of the Stockholm Stock Exchange since October 3, 2000, which after October 2, 2006 was replaced by the Nasdaq OMX Nordic where the company is now listed on the Small Cap list.
The total number of registered shares at the end of the quarter was 101,220,600. During the interim period the average turnover per day was SEK 1,786 thousand and the share price ranged from SEK 0.57 to 2.50. During the second quarter the average turnover was SEK 3,458 thousand per day, and the share price ranged from SEK 0.63 to 2.50.
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Lund, July 21, 2009
The main stockholders as at June 30, 2009
| Name | Percentage of stock capital | No. of shares | |
|---|---|---|---|
| Swedbank Robur fonder | 6.4% | 6 489 199 | |
| Storebrand fonder | 5.0 % | 5 041 991 | |
| Avanza Pension Försäkring AB | 3.0% | 3 003 540 | |
| Smart Unicorn Group | 2.8 % | 2 804 645 | |
Source: SIS Ägarservice
Risk factors
Technological development
The market in which the company operates is subject to rapid change. New technology and new players are constantly appearing. The company's technology must therefore to a large extent be accepted by the leading players on the market, both by suppliers and customers. The market must be mature enough to understand and accept the new technology supplied by the company. This can mean that major investment in marketing and sales may be required to achieve the expected sales volumes.
Technological and market development and production
As the market in which the Company operates grows and the number of players increases, there is a risk that alternative technologies will be developed and that the price of comparable products will thereby be reduced. The Company depends on external production capacity. If the demand for components and production capacity should increase, the manufacturing costs for the Company's products will also increase. An increase in the demand for components could also lead to delayed deliveries, which could result in income displacement.
Key Personnel
There are a number of key persons in Precise Biometrics who are important for operations and they possess unique competence. If one or more of these key persons should leave the company this could, in the short term, have a negative impact on operations. It is also a risk that recruiting will take time and lead to costs for the company.
Partners
Today the company cooperates with several different partners. They include smart card manufacturers, chip manufacturers and suppliers of applications. The company relies on this cooperation in order to be able to offer end customers complete security solutions. There is a risk that one or more of these partners could end their cooperation or fail to achieve the expected results, which would result in a loss of expected future earnings.
Patents and intellectual property rights
It is important to protect one's technology through patents and other intellectual property rights in order to maintain one's technological advantage and open up opportunities for future license earnings. Therefore the company pursues an active patenting policy which involves applying for patents for strategically important inventions in the countries assessed as relevant.
Competitors
The company operates in the biometry market where competition is intense. The competing companies might have substantially larger financial and industrial resources at their disposal than the company,
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Lund, July 21, 2009
and it cannot be excluded that competition from this type of player can lead to diminished market shares and/or a reduction in profitability for Precise Biometrics.
Forecast reliability
The company operates in a market which is in an early stage of growth and which is characterized by time‐consuming initial sales levels, which implies considerable problems with accurate forecasts. Earlier or later submissions of orders can have a significant effect on annual sales and income.
Cash flow
The company endeavors to minimize the time capital is tied up, for example in stocks and accounts receivable. To reduce the risks of tying up capital the company works actively to improve the internal process for forecasting and production planning. The company also endeavors to ensure that the long ID card projects are not an excessive burden in terms of the cash flow.
During the present financial crisis the Company has focused on cash flows and prevailing payment terms. This has resulted in Precise Biometrics increasing the stringency of its payment terms for customers.
Currency exposure risks
A large part of the Company's expenses is in Swedish kronor (SEK), while a significant part of earnings and production costs are generated in foreign currency (mainly USD), which increases the Company's currency exposure risks. The Company has adopted a currency exposure risk policy for the purpose of minimizing the risks in operations.
Credit risk
The Company has guidelines for awarding credit to its clients. The Company believes that there is no significant concentration of credit risks in relation to any individual client or other party.
For a full report on identified risks please refer to the 2008 annual report.
Future report dates
| Interim report Q3 | October 22, 2009 |
|---|---|
| Year‐end report | February 5, 2010 |
Accounting principles
This interim report has been prepared in accordance with IAS 34, Interim reporting and the Swedish Company Accounts Act. The interim report also has been prepared in accordance with IFRS 8, Business Segments and IAS 1, Structure of financial reports that came into force as of January 1, 2009. Adaptation to IFRS 8 has so far not affected the presentation of the financial information compared to previous years.
For information on the applied accounting principles please refer to the Annual Report for 2008.
Lund, July 20, 2008
The Board of Directors and the President certify that the interim report gives a true and fair overview of the parent companyʹs and groupʹs operations, their financial position and results of
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Lund, July 21, 2009
operations, and describes significant risks and uncertainties facing the parent company and other companies in the group.
The board of directors
Lisa Thorsted, chairman
Marc Chatel Lena Klasén Eva Maria Matell Torbjörn Clementz
Thomas Marschall, President and CEO
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Review report
We have conducted a general review of the interim report for Precise Biometrics AB (publ) for the period January 1, 2009to June 30, 2009. 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, July 20, 2009
Öhrlings PricewaterhouseCoopers AB
Eva Carlsvi Ola Bjärehäll Senior auditor
Authorized public accountant Authorized public accountant
Income statement, Group
| Full | |||||
|---|---|---|---|---|---|
| (Figures in thousands SEK) | Q2 | Q2 | Q1-Q2 | Q1-Q2 | year |
| 2009 | 2008 | 2009 | 2008 | 2008 | |
| Net sales | 9,747 | 8,874 | 21,943 | 17,889 | 45,868 |
| Cost of goods sold | -3,903 | -5,099 | -7,663 | -10,051 | -23,324 |
| Gross profit/loss | 5,844 | 3,775 | 14,280 | 7,838 | 22,544 |
| Selling expenses | -7,240 | -5,909 | -12,567 | -11,541 | -26,416 |
| Administrative expenses | -3,806 | -2,246 | -6,800 | -5,692 | -11,096 |
| R&D costs | -2,988 | -3,497 | -6,496 | -6,261 | -14,444 |
| Other operating income and changes in value | -724 | 358 | 266 | -2,026 | 5,598 |
| Result from participations in associated companies | - | -347 | - | -1,125 | -30,738 |
| -14,758 | -11,641 | -25,597 | -26,645 | -77,096 | |
| Operating profit/loss | -8,914 | -7,866 | -11,317 | -18,807 | -54,552 |
| Financial costs | -131 | 148 | -309 | 393 | 403 |
| Profit/loss after financial items | -9,045 | -7,718 | -11,626 | -18,414 | -54,149 |
| Tax | - | - | - | - | -31 |
| Profit/loss for the period | -9,045 | -7,718 | -11,626 | -18,414 | -54,180 |
| Profit/loss attributable to: | |||||
| Owners of the parent | -9,045 | -7,718 | -11,626 | -18,414 | -54,180 |
| Results per share, SEK | |||||
| -0.09 | 0.08 | -0.11 | -0.18 | -0.54 |
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Other profit/loss, Group (according to IAS 1)
Other revenues and costs directly accounted for in equity
| Full | |||||
|---|---|---|---|---|---|
| (Figures in thousands SEK) | Q2 | Q2 | Q1-Q2 | Q1-Q2 | year |
| 2009 | 2008 | 2009 | 2008 | 2008 | |
| Change in accumulated exchange rate differences | 660 | -37 | 65 | 612 | -1,471 |
| Other profit/loss for the period, net of tax | 660 | -37 | 65 | 612 | -1,471 |
| Profit/loss for the period | -9,045 | -7,718 | -11,626 | -18,414 | -54,180 |
| Total profit/loss for the period | -8,385 | -7,755 | -11,561 | -17,802 | -55,651 |
| Total profit/loss attributable to: Owners of the parent |
-8,385 | -7,755 | -11,561 | -17,802 | -55,651 |
Balance Sheet, Group
| (Figures in thousands SEK) | 6/30/2009 | 3/30/2008 | 12/31/2008 |
|---|---|---|---|
| Assets | |||
| Intangible fixed assets | 9,148 | 10,329 | 9,683 |
| Tangible fixed assets | 1,048 | 1,498 | 1,303 |
| Participations in associated companies | - | 21,271 | - |
| Receivables from associated companies | - | 6,279 | - |
| Inventories | 5,987 | 3,587 | 2,618 |
| Accounts receivable - trade | 6,996 | 6,411 | 6,859 |
| Other current receivables | 3,566 | 5,112 | 2,206 |
| Cash and bank balances | 1,520 | 15,676 | 11,343 |
| Total assets | 28,265 | 70,163 | 34,012 |
| Equity and liabilities | |||
| Equity | 4,366 | 53,530 | 16,004 |
| Current liabilities | 23,899 | 16,633 | 18,008 |
| Total equity and liabilities | 28,265 | 70,163 | 34,012 |
| Pledged assets | 17,400 | 4,115 | 12,400 |
| Contingent liabilities | - | - | - |
Cash Flow Statement, Group
| (Figures in thousands SEK) | Q2 | Q2 | Q1-Q2 | Q1-Q2 | Full Year |
|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | 2008 | |
| Cash flow from operating activities | |||||
| before changes in working capital | -7,820 | -7,024 | -10,520 | -15,348 | -24,778 |
| Cash flow from changes in working capital | -729 | -2,394 | -4,569 | -335 | 4,945 |
| Cash flow from operating activities | -8,549 | -9,418 | -15,089 | -15,683 | -19,833 |
| Cash flow from investing activities | -379 | -567 | -657 | -1,287 | -1,794 |
| Cash flow from financing activities | 6,000 | 130 | 5,923 | 130 | 454 |
| Cash flow for the period | -2,928 | -9,855 | -9,823 | -16,840 | -21,173 |
| Liquid funds at the beginning of the period | 4,448 | 25,531 | 11,343 | 32,516 | 32,516 |
| Liquid funds at the end of the period | 1,520 | 15,676 | 1,520 | 15,676 | 11,343 |
Key Figures, Group
| 6/30/2009 | 3/30/2008 12/31/2008 | ||
|---|---|---|---|
| Working capital (thousands SEK) | -5,830 | 14,153 | 5,018 |
| Liquid ratio | 51% | 164% | 113% |
| Equity/assets ratio | 15% | 76% | 47% |
| Return on average equity | - | - | neg |
| Capital employed (thousands SEK) | 4,366 | 53,530 | 16,004 |
| Return on capital employed | - | - | neg |
| Profit/loss per share (SEK) | -0.11 | -0.18 | -0.54 |
| EBITDA (thousands SEK) | -9,871 | -17,430 | -51,794 |
| Equity per share (SEK) | 0.04 | 0.53 | 0.16 |
| Number of shares | 101,220,600 | 101,220,600 | 101,220,600 |
| Number of employees at the end of the period | 35 | 42 | 44 |
| Average number of employees during the period | 41 | 38 | 41 |
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 since the subscription price is higher than the market rate at the 30th of June 2009
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
Changes in equity, Group
(Figures in thousands SEK)
| Capital stock |
Other paid in capital |
Reserves | Balanced profit/ year's profit |
Total equity |
|
|---|---|---|---|---|---|
| Opening balance of January 1, 2008 | 40,488 | 499,701 | 1,005 | -469,993 | 71,201 |
| Optionsprogram1) | - | 454 | - | - | 454 |
| Total Other profit/loss for the period | - | - | -1,471 | -54,180 | -55,651 |
| Closing balance as of December 31, 2008 | 40,488 | 500,155 | -466 | -524,173 | 16,004 |
| Opening balance as of January 1, 2008 | 40,488 | 499,701 | 1,005 | -469,993 | 71,201 |
| Optionsprogram2) | - | 131 | - | - | 131 |
| Total Other profit/loss for the period | - | - | 612 | -18,414 | -17,802 |
| Closing balance as of March 31, 2008 | 40,488 | 499,832 | 1,617 | -488,407 | 53,530 |
| Opening balance as of January 1, 2009 | 40,488 | 500,155 | -466 | -524,173 | 16,004 |
| Optionsprogram3) | - | -77 | - | - | -77 |
| Total Other profit/loss for the period | - | - | 65 | -11,626 | -11,561 |
| Closing balanceas of March 31, 2009 | 40,488 | 500,078 | -401 | -535,799 | 4,366 |
1) Relates to 2,300,000 share options to Management at a rate of SEK 0.19 and 210,000 share options to other employees at a rate of SEK 0.08.
2) Relates to 600, 000 share options to Management at a rate of SEK 0,19 and 210,000 share options to other employees at a rate of SEK 0.08.
3) Repurchase of 450,000 share options.
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Turnover and profitability by Regions Q2 2009
| Middle East | ||||||||
|---|---|---|---|---|---|---|---|---|
| (Figures in thousands SEK) | North America | Europe | & Africa | Asia | ||||
| 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |
| Net sales | 4,075 | 1,363 | 2,377 | 6,242 | 3,306 | 1,049 | 0 | 203 |
| Expenses1) | -1,995 | -904 | -4,278 | -4,745 | -2,307 -1,421 | -457 | -930 | |
| Operating profit/loss | 2,080 | 459 | -1,901 | 1,497 | 999 | -372 | -457 | -727 |
| Latin America | Other | |||
|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | |
| Net sales | - | - | -11 | 17 |
| Expenses1) | - | - | - | -399 |
| Operating profit/loss | - | - | -11 | -382 |
1) The above expenses in Regions include Cost of goods sold as well as operation expenses for each region.
Turnover and profitability by Regions Q1-Q2 2009
| (Figures in thousands SEK) | North America | Europe | Middle East & Africa |
Asia | ||||
|---|---|---|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |
| Net sales | 4,204 | 4,479 | 8,664 | 11,231 | 5,383 | 1,761 | 517 | 401 |
| Expenses1) | -2,574 | -3,047 | -8,320 | -9,415 | -3,468 -2,080 -1,253 | -1,641 | ||
| Operating profit/loss | 1,630 | 1,432 | 344 | 1,816 | 1,915 | -319 | -736 | -1,240 |
| Latin America | Other | |||
|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | |
| Net sales | - | - | 3,175 | 17 |
| Expenses1) | - | -25 | - | -399 |
| Operating profit/loss | - | -25 | 3,175 | -382 |
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) | Q1-Q2 | Q1-Q2 | Full year | |
|---|---|---|---|---|
| 2009 | 2008 | 2008 | ||
| Net sales | 16,752 | 12,537 | 30,849 | |
| Cost of goods sold | -5,355 | -6,037 | -14,681 | |
| Gross profit/loss | 11,397 | 6,500 | 16,168 | |
| Selling expenses | -8,435 | -11,983 | -24,010 | |
| Administrative expenses | -5,753 | -6,606 | -11,747 | |
| R&D costs | -6,496 | -8,689 | -16,872 | |
| Other operating income and changes in value | -4 | -3,986 | 10,726 | |
| Result from participation in associated companies | - | - | -29,662 | |
| -20,688 | -31,264 | -71,565 | ||
| Operating profit/loss | -9,291 | -24,764 | -55,397 | |
| Financial costs | -70 | 570 | 762 | |
| Profit/loss after financial items | -9,361 | -24,194 | -54,635 | |
| Tax | - | - | - | |
| Profit/loss for the period | -9,361 | -24,194 | -54,635 |
Balance Sheet, Parent company
| (Figures in thousands SEK) | 6/30/2009 | 6/30/2008 12/31/2008 | ||
|---|---|---|---|---|
| Assets | ||||
| Intangible fixed assets | 4,061 | 5,398 | 4,751 | |
| Tangible fixed assets | 616 | 1,011 | 824 | |
| Participations in group companies | 6,540 | 6,540 | 6,540 | |
| Participations in associated companies | - | 21,320 | - | |
| Receivables from associated companies | - | 6,279 | - | |
| Inventories | 5,987 | 3,515 | 2,618 | |
| Accounts receivable - trade | 1,520 | 4,930 | 4,196 | |
| Other current receivables | 42,478 | 37,307 | 41,866 | |
| Cash and bank balances | 1,398 | 13,415 | 9,329 | |
| Total assets | 62,600 | 99,715 | 70,124 | |
| Equity and liabilities | ||||
| Equity | 45,460 | 88,170 | 57,728 | |
| Other provisions | 603 | 147 | 594 | |
| Current liabilities | 16,537 | 11,398 | 11,802 | |
| Total equity and liabilities | 62,600 | 99,715 | 70,124 | |
| Pledged assets | 15,000 | 1,715 | 10,000 | |
| Contingent liabilities | 2,000 | 2,000 | 2,000 |
Page 18 of 18
Lund, July 21, 2009
In view of today's interim report we have the pleasure of inviting investors and journalists to the following information meeting during the day.
Telephone conference
- The conference starts at 11:00 (CET)
- To participate, please call +46 (0)8 506 269 30
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 conference will be held in English, but 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 of the information provided will be available for following three days after the conference. To listen to the conference, dial +46 (0)8 506 269 49 and when you are asked to state a reference PIN please dial 234174 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 AB Tel. +46 (0)46 31 11 10 or +46 (0) 734 35 11 10 E-mail [email protected]
Patrik Norberg, CFO, Precise Biometrics AB Tel. +46 (0)46 31 11 47 or +46 (0) 734 35 11 47 E-mail [email protected]
Precise Biometrics AB (Headquarters) Box 798 SE-220 07 Lund Tel.: +46 (0) 46 31 11 00 Fax: +46 (0) 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 or view the Company presentation.