Published Dec 8 2016
Q: Why was the revenue guidance provided for 2016 so wholly incorrect?
A: Fingerprint Cards’ revenues during the fourth quarter are expected to grow at a slower pace than expected. The expected, strong seasonal volume growth in the fourth quarter seems not to occur and is impacted by earlier inventory build-up throughout the supply chain. Some of the company’s customers have also been affected by component shortages, which affected their volumes of smartphones. Increased competition also affects the company’s revenues negatively. Competition has increased, mainly due to some OEMs choosing to use two suppliers, so called “dual sourcing”.
Q: Why did you wait until now to adjust the revenue guidance?
A: We were not aware of this when we reported the Q3 figures. The development occurred fairly quickly and it also took time for us to fully understand the impact on the company.
Q: How much of the adjusted revenue forecast is due to increased competition?
A: A minor part. The major part is due to a slowdown in the market during Q4.
Q: Have you lost any customers?
A: We have not lost any customers, but we have lost a certain amount of market share among some of our customers as they implement dual source supply of sensors.
Q: What is your view of the revenue trend for 2017?
A: We expect the current situation to continue to impact us in Q1 2017. The forecast for 2017 is continued growth and SEK 7,500-9,500 M in revenues.
Q: Many shareholders have said that they feel cheated by your adjusted revenue guidance for 2016. What are your comments on this?
A: We regret if anybody feels cheated. Like all other companies, we aim to deliver correct forecasts. We communicate on the basis of the conditions that prevail at any given time, in the most correct and transparent manner possible and in compliance with existing regulations. At the same time, it is important to point out that we are operating in a period of extremely robust growth. Since 2014, our revenue has increased from SEK 233.6 M to between SEK 6.6 and 6.8 billion in 2016.
Q: Was the adjusted revenue guidance for 2016 the reason why the Extraordinary General Meeting was cancelled?
A: No. The Extraordinary General Meeting was cancelled because the Board decided to withdraw the suggested remuneration program following dialogue with the company’s owners.
Q: What measures have you taken to ensure that a misleading forecast will not be provided again?
A: We work tirelessly to diversify our analysis work to include facts, statistics and data from customers, partners and distributors as well as the entire ecosystem in which we operate.
Q: What measures do you intend to take to regain the trust of the stock market?
A: We’re receptive to the viewpoints and criticism leveled at us. We aim to provide accurate forecasts and deliver in accordance with them.