Current questions & answers

Published: May 7, 2018

Q: There are rumors and media articles to the effect that Fingerprints is planning to sue one of its Chinese competitors for patent infringement in a Chinese court. Is there any truth to these rumors?

A: We never comment on rumors, but if we find proof of patent infringement, we are prepared to defend our intellectual property.

 

Published: November 1, 2017

 

Fingerprints Technology Update: The event will be webcast live through the following link: https://fingerprint.creo.se/171101
It will be possible to ask questions via the webcast, and after the live webcast an on-demand version will be accessible.

 

 

Published: September 21, 2017

 

For more information about smart cards and T-shape i conjunction to today’s press release, please see the recorded version of our webinar.

 

 

Published: September 18, 2017

For questions regarding communication of a revenue interval for the third quarter, please see press release. Please note information about webcast 09:30 CEST. A recording of the webcast will be posted here when available.

Published: September 13, 2017

 

Q: What is your comment regarding Apples’ s launch?

A: We think it is good that Apple introduces a touchless biometric technology. It is line with our strategy and a positive sign as it means that the biometrics market is evolving. They have launched two phones with a fingerprint sensor and a very high end phone with face ID. None of them had both modalities, which surprised us a bit as it is a trend which clearly enhances both security and convenience. Important to state is also that we have our customer base in the Android community which represents some 85 percent of the smartphone market. So, although Apple is an admirable company we should be careful not to overestimate their influence when it comes to biometric authentication. There are plenty of other companies that will have a say as well.

 

Q: What do you think of Apple’s face ID?

A: As it is touchless it complements a fingerprint sensor in a natural way from a usability point of view. We have chosen iris as it is more secure and not sensitive to visual changes of the face due to age or facial hair, and it can separate twins for that matter. We also note that Apple solutions is being introduced in a high-end smartphone which comes with a significant price tag while our iris-implementation is less costly.

 

Q: Will face ID and/or iris replace the fingerprint sensor?

A: No, we are convinced that the next step in biometric authentication is about using complementing technologies and modalities, not about replacing them. By introducing touchless technologies, like iris-identification, in mobile devices and use them together with the fingerprint sensor we will bring security and convenience to the next level. According to our recently conducted world-wide user studies, more than 80 percent of the users still by far consider fingerprint to be the most convenient authentication method. Users have simply gotten used to the fingerprint sensor and appreciate the convenience and the extra features it brings.

Multimodality is the way to go and that’s the path we have chosen.

 

 

Published: September 11, 2017

 

Q: How is Fingerprints affected by changes in currency rates?

A: Our customers pay us in US dollars, USD. We also make our purchases of goods and services in the same currency. The majority of our employees are based in Sweden and therefore most of our operating expenses, such as salaries and rents, are in Swedish kronor, SEK. As the company reports in SEK, “Revenues” and “Cost of sold goods” in the income statement are therefore affected when the SEK/USD exchange rate changes.

For the reasons above, some other items such as accounts receivables and accounts payables are also linked to the USD. In addition, we have some liquid funds, like loans and cash on bank accounts, in the same currency. These are adjusted for changes in currency rates and the differences that arise are reported as currency translation differences, gains or losses, and are also included in the income statement. Partly under “Other operating income and expenses” and partly under “Financial income and expenses”.

 

Q: How does Fingerprints protect itself against the effect of currency fluctuations?

A: Exchange rate fluctuations are one of the risks we are exposed to and which we regularly assess how to deal with. You can choose to hedge your currency exposure against changing exchange rates but to date we have not done so. Please see the Annual Report pages 59, 61, 63 and 86 for more information.

 

 

Published: August 22, 2017

 

Q: What is the status regarding Fingerprints’ buyback program of own shares?

A:The annual general meeting, AGM, decided to authorize the Board to decide on repurchasing and transfer of own shares Series B, it was not a decision to initiate the actual repurchasing. The purpose of the mandate was to give the board more latitude regarding the company’s capital structure and the mandate is valid until the next AGM.

 

Q: How is the market informed when the buyback begins?

A: When the Board decides to use the authorization, the decision is made public. The repurchases are reported to Nasdaq OMX and in conjunction which this, this information is also made public.

 

 

Published: May 31, 2017

 

Q: What is the status regarding the acquisition of Delta ID?

A: We still expect the deal to be closed during the second quarter

 

Q: How do you communicate when it comes to launches of smartphones equipped with your sensors?

A: Please see Questions & Answers regarding information disclosure and product launches: https://corporate.fingerprints.com/en/newsroom/faq-regarding-fingerprints-information-disclosure-and-product-launches/qa-regarding-information-disclosure-and-product-launches/

 

Published: May 29, 2017

 

Information about our inventory

 

Q: Why has Fingerprints own inventory increased?

A: Our own inventory has increased as a result of the inventory build-up throughout the value chain. When our customers decrease their orders on us we have to decrease our orders towards our own suppliers. We have done so, but it takes 3-4 months before this has an effect since that is the planning horizon our suppliers are operating with. Until it takes effect, the inventory increases and this is what has happened in the first quarter.

 

Q: What do you do about it?

A: At the moment we to a large extent deliver from our own inventory and as stated, we expect to be able to sell the products we have there. It is however customary, and prudent, to make charges for obsolescence, i.e. that some products cannot be sold. We do this on a regular basis and in the first quarter we, as stated in the interim report for the first quarter, made an obsolescence charge (“partial”) corresponding to approximately 3 percentage points of revenues.

 

Q: How big inventory is “normal” for Fingerprints?

A: As we said at the first quarter’s earning’s call it is hard to say what is normal for us. We have been growing extremely fast and it has been challenging to keep up with customer demand which naturally result in low inventory levels. Lately, we have had the opposite situation, resulting in too much inventories. In addition, our product portfolio has grown and we have, as stated in the interim report, ongoing product exchanges which is also a factor to take into account. Inventory is part of Working Capital and Fingerprints’ track “Working Capital/Revenues” which we want to keep below 10 percent. Currently it isn’t, and our inventory is an obvious reason.

 

Q: Will the profit increase when you sell out the inventory?

A: No, the decrease of our own inventory does not affect the profit but it has a positive effect on the company’s cashflow as revenues will be related to already purchased, stocked and paid for products.

 

 

Published: April 12, 2017

 

Questions regarding fingerprint sensors and security

 

Q: How safe are Fingerprints’ sensors? A new study claims that fingerprint sensors in smartphones can be hacked by artificial fingerprints?

A: For Fingerprints, security is a key priority and we are the industry-leader within fingerprint sensors. We continuosly conduct security analysis of our solutions and keep ourselves updated on the latest biometrics research.

The mentioned study, which has received attention, presents a method by which a “masterprint”, a synthetic or real partial fingerprint, is used with varying success to access fingerprint biometric systems with partial fingerprints. The analysis is based on a system using minutia points, that are often low in number for such small image sizes (i.e. in smartphones). It also uses information about these minutia points to create the “masterprints”, and the analysis has been done for a specific matcher.

Fingerprints’ system does not rely on minutia points, but is based on a proprietary system with significantly improved security, and therefore the analysis is not valid to our systems. In addition, we offer FPC SafeTouch, a function which increases security against spoof attacks.

Fingerprints is very meticulous with analyzing the security of its biometric systems and having partial images and more than one finger enrolled is certainly part of that analysis. The standard security level of our systems is at 1/100 000 False Acceptance Rate.

 

Read more about security and biometric authentication here: (from page 5)

https://fingerprints-cbqmhmjyrs2rynk.netdna-ssl.com/wp-content/uploads/2016/11/Fingerprints-Biometric-Technologies-Whitepaper-January-2017-RevB.pdf

 

Published: April 7, 2017

 

Q: What is the status of the Delta ID acquisition and when is it expected to be completed?

A: We have no new information regarding the acquisition of Delta ID but the approval is currently with the American authorities. We expect it to be closed in Q2 but we are not controlling the process at the moment.

 

Published: April 5, 2017

 

Questions regarding the smartcard demonstration:

Q: Is the power in the cards generated by a technology that Fingerprints has developed?

A: Others have developed the technology to generate power in this way through a point-of-sales terminal. That particular technology is already used in payment cards on the market today. The unique thing we demonstrate here is that we can perform a fingerprint authentication thanks to our extremely power efficient solution.

 

Q: Will Fingerprints sell these smart cards, on the market?

A: Fingerprints does not intend to sell smartcards as such, these cards have been developed to show what is possible, and are used in demonstrations for customers and partners to drive the smartcard market forward.

 

Published: April 3, 2017

 

Q: The new smartcard that is demonstrated in the video in the newsroom, what companies have you partnered with?

A: This is our demo-product and we don’t comment on who we have worked with to make it work.

 

Q: How can I request a printed copy of the Annual Report?

A: Please send an email to [email protected] with your mailing address and write “Annual Report” as subject. The Annual Report will be available for the AGM April 20, and a printed copy will be sent to you after that date.

 

Q: Is Delta ID supplying the iris solution for Samsung S8?

A: Unfortunately, we cannot comment on Delta’s iris solution used by Samsung. The acquisition of Delta ID is awaiting approval by the US authorities, and as long as the acquisition is not closed, we cannot speak for them, or tell them what to communicate.