Norway's Next Biometrics has reported sales of 28.4 million Norwegian Krone (US$3.3 m) in the third quarter, up from 26.6 million NOK.It has said that Q4 sales are expected to be level with previous quartersIn the period, it also shipped first 1 million fingerprint sensors, generation 2 fingerprint sensors were implemented in all modules and generation 2 ASIC was in testing stage and on track.Tore Etholm-Idsoe, CEO of NEXT Biometrics, said, “Regarding NEXT product implementation of the new generation low power, high yield fingerprint sensors was completed in all modules late in the third quarter. Significantly higher yield rates contributed to COGS reductions from September onwards.”Etholm-Idsoe said during the third quarter, “The first versions of the second generation ASIC were completed and testing commenced. The project is on track for implementation and volume module deliveries with major effects from the third quarter of 2017. This project represents major component reductions and will bring the company modules to its long targeted cost levels.”NEXT Biometrics CEO Etholm-Idsoe and CFO Knut Stalen detailed NEXT's results and outlook, posted online.He added, “NEXT continues in close collaboration with its strategic partner INNLOUX, to make advancements in its activities targeting flexible fingerprint sensor mass production capacity within the end of the second quarter of 2017. In parallel, a range of system level activities are proceeding targeting volume deliveries of the world´s first fully ISO-compliant flexible fingerprint sensor Smart Cards in the second half of 2017.”Discussing sales and market, the CEO said, “The company focuses its resources on quality dependent market segments that require high uncompromised levels of security and convenience coupled with the ability to serve close to 100% of a given population. These markets include Smart Cards, NEXT-Enabled markets, traditional markets, high-end security focused smartphones and notebooks where the NEXT technology is uniquely positioned.”He added, “The Smart Card segment is the primary focus for the company. NEXT believes it holds a fundamental competitive advantages within this market and that early Smart Card customer projects involve significant value propositions. The company has over the past 12-to-18 months identified significant opportunities within several major Smart Card market segments.”Etholm-Idsoe noted, “The Smart Card order announced in April demonstrates the attractive early stage commercial viability of the NEXT's Smart Card activities. The April order was followed by a new design win, announced in November, with an Asian governmental customer project for an initial amount of 250,000 flexible fingerprint sensors. The project is targeted to start in the second half of 2017, following completion of the on-going ramp-up project with the company's mass production partner, INNOLUX.”NEXT Biometrics, in its profit and loss statement that operating revenue in the third quarter of 2016 was MNOK 28.4, compared with MNOK 26.6 in the previous quarter and MNOK 0.2 in the third quarter of 2015. For the first three quarters of 2016 revenue amounted to MNOK 60.3 compared with MNOK 2.9 for the first three quarters of 2015.So far in 2016, the company said, several of the initial cost elements related to production and delivery are still one-offs, or temporary, and do not provide a clear and relevant indication of cost of goods sold. Significant improvements were realized late in the third quarter and this is continuing into the fourth quarter of this year and the first quarter of 2017.The CEO said, “NEXT expects the operation mode to normalize from the first quarter of 2017 and to make a leap in terms of margins from the introduction of the new ASIC from the third quarter of 2017.”
Next Biometrics reveals Q3 sales of $3.3m
