IDEX Biometrics Interim Report for the First Half of 2022
Oslo, Norway – 11 August 2022- IDEX Biometrics
ASA’s interim report for the first half 2022, is enclosed
with this notice.
A webcast presentation will be held by Vince Graziani, Chief
Executive Officer, at 13:00 CET. The webcast can be viewed at the
following link:
https://channel.royalcast.com/landingpage/hegnarmedia/20220811_4/
The interim report and the presentation shown in the webcast are
available on the IDEX Biometrics website:
www.idexbiometrics.com/investors
Commercial Update
During the second quarter of 2022, IDEX
continued to make commercial progress with our fingerprint solution
with three new commercial bank launches. Fintech companies and
challenger banks seeking security for their clients and product
differentiation have been adopters of biometric smart cards. In
2022 Rocker, Manager.one, Fidor and an issuing bank based in Turkey
have launched, or will soon launch, biometric payment cards
embedding IDEX Biometrics sensor solutions.
We also entered into an important agreement with
Linxens, the leading supplier of EMV® modules and interconnect
technology, for the manufacturing of smart cards. Under the
agreement, Linxens will bundle biometric solutions from IDEX with
an EMV module and interconnect technology from Linxens providing
card makers a complete, ready to assemble, solution for biometric
smart cards.
Investment in the biometric payment card
industry continues to grow, but widespread deployment of biometric
cards by banks and issuers is taking longer than industry
participants and analysts predicted. Banks cite several reasons for
these delays with the ongoing chip shortage being the main culprit.
Secure element chips for standard contactless payment cards are in
short supply and many banks are delaying the introduction of new
payment card products as a result. However, with consumer interest
growing, issuer banks are introducing biometric payment cards to
segments of their card portfolios. 2022 has become the year for
initial scaling with segment launches, leading to a broader
roll-out during 2023.
Second Quarter and First Half Financial
Performance
For the second quarter ended June 30, 2022, IDEX Biometrics
recorded consolidated revenue of $1.1 million. Sequentially, second
quarter revenue increased approximately 12% from the first quarter
of 2022, reflecting the increased shipments to our primary customer
in the payment card segment. By comparison, second quarter 2021
revenue was $697 thousand, for a year-over-year quarterly increase
of 59%.
For the first half of 2022, the Company recorded consolidated
revenue of $2.1 million, compared to $1.3 million for the same
period in 2021, representing an increase of 59%.
Revenues in the second quarter increased both
sequentially and year-over-year despite supply chain disruptions as
a result of Covid-19 related restrictions in China that delayed
shipments from one of our suppliers. As we had pre-ordered
inventory in anticipation of longer lead times, our quarterly
revenue was less negatively impacted than would otherwise been the
case. In the second half of 2022, we expect our revenue figures to
be negatively impacted as our shipments from our assembly
subcontractor will most likely continue to be constrained.
The gross margin was 6.6% in the second quarter,
and 18.5% for the first six months of 2022. Our margins were
adversely impacted by several factors: Higher component prices have
not yet been passed on to customers, manufacturing costs have not
yet achieved high-volume level, product mix changes, and a
write-off of inventory of a discontinued product.
Operating expenses increased in the second
quarter and the first half of 2022 compared to same periods in
2021. Other than Cost of materials, the increase was primarily in
Other operating expenses. The year-over-year increase is associated
largely with higher marketing and sales costs, reflecting the
expansion of our commercial activities.
In response to uncertainty around the timing of
revenue as a result of the factors mentioned above, IDEX has
implemented measures to contain operating expenses and the number
of staff will be reduced during the second half of 2022.
Net loss for the second quarter of 2022 totaled ($9.2 million),
in contrast to a net loss of ($7.2 million) for the second quarter
of 2021, and a net loss of ($8.1 million) for the first quarter of
2022.
Net loss for the first half of 2022 totaled ($17.4 million), in
contrast to a net loss of ($14.8 million) for the first half of
2021.
For further information contact:Marianne Bøe, Head of Investor
RelationsE-mail: marianne.boe@idexbiometrics.comTel: + 47 9180
0186
Brett L. Perry, U.S. Investor RelationsE-mail:
bperry@sheltongroup.comTel: +1 214 272 0070
About IDEX Biometrics
IDEX Biometrics ASA (OSE: IDEX and Nasdaq: IDBA) 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, or unlock devices 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
TRADEMARK STATEMENTIDEX, TrustedBio, 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.
This information is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading Act
- IDEX 2022 Q2 Interim Report
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