February 14, 2017 / 7:53 AM / a year ago

UPDATE 1-Precise Biometrics expects sales to biggest client to stop in 2017, to be replaced by others

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Feb 14 (Reuters) - Swedish software biometric company Precise Biometrics on Tuesday said it expected sales to its biggest client to stop completely during the latter part of the year and to be replaced by other clients as it forecast flat 2017 revenue.

* “Revenues from our biggest customer, Fingerprint Cards (FPC), continue to fall quarter on quarter in the mobile devices segment and is expected to cease completely during the second half of the year,” CEO Hakan Persson said in a statement

* Says its other customers show solid growth and expects gradually increasing volumes starting from the second half of the year, which is why it expects net sales for the full year to be in line with net sales for 2016

* Q4 consolidated net sales increased to SEK 25.7 (23.5) million.

* Q4 operating profit before depreciation (EBITDA) totaled SEK 3.8 (6.7) million.

* Q4 cash flow from operations improved to SEK 11.8 (8.8) million

* Says anticipates a weaker revenue development during the first half of the year because of reduced revenues from FPC

* Says expects gradually increasing volumes starting from the second half of the year

* CEO says “I am confident that Precise Biometrics thereafter will continue to have a high growth considering our position in the market.”

* Says market for mobile devices with fingerprint sensors, excluding Apple, doubled in 2016 from 300 to 600 million devices

* Says believes the mobile market will continue to develop rapidly and reach a total of almost 900 million devices in 2017

* Says about smart cards, wearables and IoT (Internet of Things) devices: “We are involved in a large number of well-advanced projects in which we are expecting modest initial volumes during the year”

* Says it is difficult to assess how quickly the market for new product areas will grow, but convinced that over time the market has the potential to be at least as large as the market for mobile devices

* Says during the quarter we intensified our collaboration with many of our customers in major integration projects at the premises of mobile phone manufacturers and expect this to be generating major volumes during the latter part of the year and continuing into 2018

* Fingerprint Cards in April 2016 said it would develop its own algorithm Source text for Eikon: Further company coverage: (Reporting by Olof Swahnberg; Editing by Daniel Dickson)

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