Fingerprint Cards Reports Fourth Quarter 2024 Financial Insights

Fingerprint Cards Reveals Preliminary Financial Outlook for Q4 2024

Fingerprint Cards AB (publ), referred to as "Fingerprints" or the "Company," is set to unveil important updates following its earlier announcement regarding a partially guaranteed rights issue. This initiative comprises a mix of new series B shares and warrants that provide subscription rights for existing shareholders. As part of this process, the Company will release a detailed prospectus that aims to showcase preliminary figures for the fourth quarter of 2024, scheduled for publication in early 2025.

Summary of Preliminary Financial Figures

As of December 31, 2024, Fingerprints has disclosed the following preliminary financial figures for the fourth quarter of 2024. It is crucial to note that these figures are yet to undergo the auditing process by the Company's auditor. The current quarter's performance illustrates the ongoing execution of the Company's transformation strategy.

Key Financial Metrics

The latest figures reflect a significant transition in the business focus, with net sales reported at 41.6 million SEK. This decrease in sales is largely attributed to the decision to wind down unprofitable Mobile and PC product segments. Despite lower sales, the Company has realized a gross margin of 15.3%, a noteworthy increase compared to previous results. The improvement in gross margin can be traced back to a better product mix, leading to overall enhanced profitability.

Operating Results Analysis

Operating results for the fourth quarter indicate an EBIT of -65.0 million SEK. This figure reflects a substantial improvement compared to the previous quarters, driven primarily by a proactive management strategy aimed at reducing losses. The Company’s EBITDA stands at -40.3 million SEK, showcasing a significant reduction in operational costs.

Insights on Financial Strategy

A key aspect of this reporting period has been the write-down related to capitalized research and development efforts, particularly in the PC sector, amounting to approximately 7.8 million SEK. Furthermore, the adjusted EBITDA shows preliminary costs associated with restructuring efforts, which totaled around 11.3 million SEK, predominantly linked to personnel adjustments primarily in China.

Cash Flow and Operating Activities

Cash and cash equivalents on the books amount to 12.1 million SEK, contrasting sharply with the previous year's holding of 109.9 million SEK. The cash flow from operating activities reflected a negative figure of -45.6 million SEK, continuing the trend of operational challenges. This trend emphasizes the critical need for effective restructuring and strategic refocusing moving forward.

Future Reporting and Communication

The Company plans to release its year-end report for the full year of 2024 on February 28, 2025. Stakeholders and interested parties are encouraged to stay informed through Fingerprints' official channels.

Contacting Fingerprints

If you need further information, Adam Philpott, the CEO of Fingerprints, is available for inquiries. Additionally, the Investor Relations team can be reached at +46(0)10-172 00 10 or through email at investrel@fingerprints.com. For media inquiries, you can contact them at +46(0)10-172 00 20 or press@fingerprints.com.

Frequently Asked Questions

What financial figures did Fingerprints announce for Q4 2024?

Fingerprints reported net sales of 41.6 million SEK and an EBIT of -65.0 million SEK for Q4 2024, highlighting changes in their product strategy.

How has Fingerprints' gross margin changed?

The gross margin increased to 15.3% in Q4 2024, demonstrating an improved product mix despite lower overall sales.

What were the major factors leading to the financial performance?

The shift away from unprofitable business segments and ongoing restructuring efforts significantly impacted the Company's financial performance.

When will Fingerprints release its year-end report?

The year-end report for the period January to December 2024 will be published on February 28, 2025.

How can I contact Fingerprints for more information?

For inquiries, you can contact Adam Philpott, CEO, or the Investor Relations team at the provided contact numbers and emails.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.