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STOCKHOLM May 4 Swedish biometric firm
Fingerprint Cards (FPC) reported earnings well below
expectations on Thursday, as excess inventories industry wide
and increased competition continue to hit revenue.
The earnings miss comes after the firm scrapped plans last
month for what would have been its first dividend.
FPC in March warned that first-quarter revenue would decline
by more than 50 percent due to weakened demand from smartphone
makers and the inventory build-up of sensors.
FPC's customers are mainly Chinese smartphone makers such as
Huawei and Oppo after making its big break-through in
2015 as demand for fingerprint sensors in smartphones and
It said in Thursday's report it expected inventories to
normalise during the current quarter and repeated it could not
forecast earnings for 2017.
The company reported an operating profit of 70.8 million
Swedish crowns ($8 million) in the first quarter, lower than the
110 million expected by analysts in a Reuters poll, and sharply
down from 589 million a year earlier.
"To safeguard our profitability, we are reviewing our costs
and the business at large, to ensure that we invest our
resources in the right areas," Chief Executive Christian
Fredrikson, who took charge last August, said in a statement.
Revenue fell by 54 percent to 686 million crowns, lower than
the 675 million expected by analysts in the Reuters poll.
"The share has been very weak and even though the underlying
figures are OK relative to estimates they are still weak numbers
and the remarks on increased competition and remaining high
inventory levels in Q2 should hold it back," SEB said in a note
($1 = 8.8435 Swedish crowns)
(Reporting by Olof Swahnberg and Helena Soderpalm; editing by