Commissioned Research: Fingerprint Cards

Fingerprints is a leading semiconductor company that provides biometric sensors and solutions.

Fingerprint Cards (Fingerprints) today is not the same company as it was during its early phase, and it certainly does not have the same market expectations as it did during the stock price peak in 2015. Nevertheless, we think there are still a few tricks up its sleeve that could chart a path to innovation and growth. The decline of the previously quite profitable market of capacitive fingerprint sensors for smartphone implementation has prompted many investors to give up on the company, but we do not believe it is time to pull the plug just yet. – Marketing material commissioned by Fingerprint Cards.

Click to download the initiation report

Company update: Reversed margin trend, many bets ahead

Fingerprints’ gross margin has been in decline for the past nine quarters. However, in Q3 it was 27%, 7 pp above our estimate and up 12 pp sequentially. Net sales came in at SEK 431m for Q3, 4.5% below our estimate. Operating cash flow was a positive SEK 202m and pre-tax profit SEK 3m, turning the company to profitability for the first time in a year and alleviating the risk of management turning to the capital markets.

Click to download the Q3 update

Company update: Q2 2018 report

Fingerprints reported Q2 net sales of SEK 389.9m, up 35% sequentially but down 53% from
Q2 2017. The gross margin adjusted for the inventory writedown was 15%, the same as in Q1.
The operating profit was impacted by restructuring costs from the cost-cutting programme
and by writedowns in inventory and capitalised R&D, ending up at SEK -578.2m.

Click to download the Q2 update 

Marketing material commissioned by Fingerprint Cards.

To learn more on Commissioned Research, please click here

The information provided within this website is intended for background information only. The views and other information provided herein are the current views of Nordea Markets as of the date of publication and are subject to change without notice. The information provided within this website is not an exhaustive description of the described product or the risks related to it, and it should not be relied on as such, nor is it a substitute for the judgement of the recipient.

The information provided within this website is not intended to constitute and does not constitute investment advice nor is the information intended as an offer or solicitation for the purchase or sale of any financial instrument. The information provided within this website has no regard to the specific investment objectives, the financial situation or particular needs of any particular recipient. Relevant and specific professional advice should always be obtained before making any investment or credit decision. It is important to note that past performance is not indicative of future results.

Nordea Markets is not and does not purport to be an adviser as to legal, taxation, accounting or regulatory matters in any jurisdiction.

The information provided within this website may not be reproduced, distributed or published for any purpose without the prior written consent from Nordea Markets.

Further reading