NEXT Biometrics (NEXT) continues to rapidly scale its operations – the Norwegian biometrics company has now received a new order to deliver its FAP20 fingerprint sensors. On May 23, 2023, NEXT announced a breakthrough deal with a new Asian distributor, which was structured as a three-year preferred supplier contract with a minimum volume commitment. NEXT has now received its first and initial stocking order relating to this contract. The distributor’s end-customers are targeting the China ID market with their products and the first customer plans for mass production in Q1 2024. NEXT’s deliveries starts in Q4 and most of the stock is expected to be consumed by the end of Q1 2024.
Ulf Ritsvall, Chief Executive Officer at NEXT Biometrics, comments on the business progress:
“Not only is this an important contract for us, but it is also a strong signal of our progress in the market in China. We have excellent and reliant production capacity and continue to rapidly scale and expand our operations in line with our strategy. With this order, NEXT is on track towards reaching profitability. We aim to complete our China ID certification in Q4 2023 and expect more orders once we have the certification in place.”
The previously communicated agreement with the Asian distributor has an estimated contract value of NOK 110 to 250 million over a three-year period. The distributor plans to order volumes for a minimum of NOK 100 million. In accordance with the contract, NEXT has guaranteed to reserve production capacity for this customer of in total NOK 250 million over the three-year period.
In the agreement, the distributor has granted NEXT an exclusive, preferred supplier contract to serve five of the largest and most prestigious fingerprint sensor customers in Asia. Most of the distributor’s five end-customers are already familiar with the NEXT’s Active Thermal™ FAP20 fingerprint sensor.
Joshua Chiu, Senior Vice President and Head of Sales, South-East Asia, at NEXT Biometrics, provides further details on the order:
“Our product offering remains very strong, as security continues to be an increasingly important market driver. With its combination of thermal technology and strong liveness detection features, NEXT’s FAP20 is one of the world’s most secure fingerprint sensor. The volumes in this specific contract are for existing products on the market, where the FAP20 will replace current sensor solutions. We’re delighted to support our customer and look forward to fulfilling our part of the contract as we continue this partnership.”
According to the terms of the contract, the three-year contract period will start from NEXT’s first delivery. The contract cannot be terminated before three years. After three years, unless terminated then, the contract is automatically extended for two years with the same terms.
For more information, please contact:
Chief Executive Officer at NEXT Biometrics
Chief Financial Officer at NEXT Biometrics
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. NEXT Biometrics Group ASA is headquartered in Oslo, with sales, support and development operations in Seattle, Taipei, Tokyo, New Delhi and Shanghai.