Highlights Q3 2020:
- Cost reduction program target reached at end of the quarter; cost effectiveness focus continues
- Revenue of NOK 15.2 million in Q3 2020 up 12% from Q2 2020
- COVID-19 has extended sales cycles and delayed closing of deals, but actively working on multiple opportunities with revenue potential in 2021
- Gross margin of 14% in Q3 2020 (11% in Q3 2019)
- EBITDA ex options1 of NOK -14.2 million in Q3 2020 (-34.7 million in Q3 2019)
- NOK 10.8 million subsequent offering completed in July
- Cash position of NOK 86.8 million per 30 September 2020
NEXT CEO Peter Heuman commented:
“Our performance during the third quarter is characterized by outstanding score on cost cutting which is now a full quarter ahead of plan coming in at NOK 17.3 million in adjusted operating expense per quarter. Revenues are inching upwards delivering growth of 65% compared to our turn-around low-point in Q4 2019 and a 12% growth compared to Q2 2020. We had expected better revenue numbers than what we actually reported, but the pandemic has lengthened already long biometric sales cycles for many of our customers. Still, we remain steadfast in pursuit of higher revenue numbers and have confidence that our turn-around, systematic and intensive sales efforts should yield further results.
The COVID-19 environment has frustrated our efforts to quickly accelerate growth. The commercial activity level is, however, very high. Our streamlined organization has done a great job in establishing new potential growth areas. Compared to when the reset of the company started, our sensors have now been designed into several interesting biometric devices and point of sales manufactures in Asia, US and India. On the PC front we continue to see interest from new customers and recurring business from existing customers.
In summary, our costs are down and our cost cutting is ahead of schedule. Our revenues show an upward trajectory and the organization aggressively pursues new business with our promising FAP20 and other products.”
For further information, please see presentation and quarterly report. Definitions and reconciliation of alternative performance measures can be found in the quarterly report. The presentation and quarterly report are available on www.nextbiometrics.com/investors and www.newsweb.no.
Presentation of third quarter result:
NEXT Biometrics Group ASA will host a conference call to present the results for the third quarter 2020 today at 08.30 CET. Management will be represented by CEO Peter Heuman and CFO Eirik Underthun.
A Q&A session will be held as a part of the call. Participants who have questions must send their questions by email to email@example.com. Questions can also be sent by email during the presentation. Please note that it will not be possible to ask questions over the phone during the Q&A session.
The conference call will be recorded and published at www.nextbiometrics.com/investors afterwards.
Participant access information:
Please join the conference call 5 minutes prior to the start time using the access information below.
Start Time: 08:30 CET
Duration: 60 minutes
NO: +47 21 93 37 39
SE: +46 853 527 819
UK: +44 330 221 9922
US: +1 (562) 247-8421
Access Code: 357 742 138
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, Taipei, Bengaluru and Shanghai.
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NEXT Investor contact:
Peter Heuman (CEO), firstname.lastname@example.org
Eirik Underthun (CFO), email@example.com
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.