Swedish biometrics firm Fingerprint Cards has said revenue is set to fall more than 50 percent, and will withdraw its proposal of a dividend for 2016.The fingerprint sensor maker has blamed a stubborn inventory backlog among OEMs for lower than expected orders from device manufacturers.In a statement Tuesday. Chief Executive Officer Christian Fredrikson said mobile-phone makers who use the company's sensors overestimated demand and built up large inventories.”A seasonally sluggish start to the year has weakened further by high inventory levels throughout the supply chain. ߪ Inventory levels in the Company`s channel have decreased slower than expected, and continue to affect shipment volumes and revenues in the current quarter, and are also expected to affect the second quarter,” wrote FPC.As a consequence of the current short term uncertainty, the company has decided to refrain from further guidance for 2017.However, the company said it continues to actively execute on the strategy as a leading biometric company to defend and strengthen its position further in smartphones, while enabling the roll out of the new segments, and continuing to innovate and strengthen the IP portfolio.”The short-term challenges are expected to continue until the second quarter this year, but Fingerprint Cards has a strong customer base to build on.”A strong sign is an active dialogue with its customers regarding iris recognition through the acquisition of Delta ID. In addition, Fingerprint Cards has recently been selected as vendor for a number of devices which is a testimony of its competitiveness in the market.”In January, Fingerprint Cards enhanced its reach in the smartphone market by acquiring the iris recognition solutions firm Delta ID for US$106 million. The transaction is subject to regulatory approvals and expected to close during spring 2017.
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