The revenue development follows previously communicated reduction of sensor module shipments to the US tier-1 notebook customer. Shipments to this customer is expected to decline in the fourth quarter and into 2020. The decrease in third-quarter revenue was partially mitigated by increased shipments of sensors and readers to other customers.
NEXT continues to diversify its customer and revenue base across target markets. Due to current sales lead time and design-in cycles, NEXT do not expect to completely offset the reduction in US tier-1 notebook revenue in the fourth quarter of 2019 and into early 2020.
Also, in the third quarter, NEXT expects to book an inventory write-down of approximately NOK 3 million related to an older generation of sensors held in stock. These have been classified unsuited for commercial use. The write-down will have no cash effect.
NEXT will continue a disciplined approach to both new investments and cost levels going forward. The cash position at end of the third quarter was approximately NOK 132 million.
Please note that revenue numbers are preliminary and may be subject to change. NEXT is scheduled to release its interim report for the third quarter 2019 on Tuesday, November 12.
About NEXT Biometrics:
NEXT provides advanced fingerprint sensor technology that delivers uncompromised security and accuracy for the best possible user experience in the smart card, government ID, access control and notebook markets. The company’s patented NEXT Active Thermal™ principle allows the development of large, high quality fingerprint sensors in both rigid and flexible formats. NEXT Biometrics Group ASA (www.nextbiometrics.com) is headquartered in Oslo, with sales, support and development operations in Seattle, Silicon Valley, Taipei, Prague, Bengaluru and Shanghai.