BRIEF-Fingerprint Cards warns of Q4 operating loss, sees weak Q1 sales

Jan 25 (Reuters) - Fingerprint Cards AB:

* REG-FINGERPRINTS PREDICTS LOWER THAN EXPECTED EARNINGS IN THE FOURTH QUARTER

* PREDICTS Q4 2017 EARNINGS TO BE LOWER THAN MARKET EXPECTATIONS

* ESTIMATES REVENUES TO DECLINE 62% COMPARED TO SAME QUARTER LAST YEAR

* EXPECTS GROSS MARGIN TO DECLINE TO 21% IN Q4

* SAYS ‍PREDICTS Q4 2017 EARNINGS TO BE LOWER THAN MARKET EXPECTATIONS, AND ESTIMATES REVENUES TO DECLINE 62% COMPARED TO SAME QUARTER LAST YEAR TO SEK 615.3 M (1,618.7)​

* SAYS ‍ESTIMATES THAT OPERATING PROFIT (EBIT) DECLINES TO SEK -40.6 M (520.0)​

* SAYS ‍EXCLUDING INVENTORY PROVISION OF SEK -58.9 M AND A NON-RECURRING ITEM OF SEK 28.2 M, COMPANY ESTIMATES OPERATING PROFIT (EBIT) TO SEK -9.9 M.​

* SAYS ‍REVENUES HAVE BEEN IMPACTED BY A WEAK MARKET DEVELOPMENT AND A CONTINUED NEGATIVE PRICE DEVELOPMENT IN CAPACITIVE SENSORS​

* SAYS ‍ESTIMATES THAT CHINESE SMARTPHONE MARKET HAS WEAKENED FURTHER DURING QUARTER AND PREDICTS THAT COMPANY’S REVENUES WILL REMAIN WEAK DURING Q1 OF 2018​

* SAYS ‍EXPECTS GROSS MARGIN TO DECLINE TO 21% (44)​

* SAYS ‍DECLINE IN GROSS MARGIN IS PRIMARILY ATTRIBUTABLE TO A WEAKENED PRODUCT MIX AND TO AN INVENTORY PROVISION OF SEK -58.9 M​

* SAYS ‍TO STRUCTURALLY IMPROVE PROFITABILITY FINGERPRINTS HAS INITIATED A COST REDUCTION PROGRAM AND AS PART OF THIS APPROXIMATELY 185 POSITIONS ARE MADE REDUNDANT​

* SAYS ‍IS REDUCING EXTERNAL COSTS, MOSTLY CONSULTANTS, BUT ALSO COSTS RELATED TO OWN EMPLOYEES​

* SAYS ‍AGGREGATED INITIATIVES ARE ESTIMATED TO RESULT IN COST SAVINGS OF SOME SEK 360 M DURING 2018​

* SAYS ‍RESTRUCTURING COSTS ARE CURRENTLY ESTIMATED TO SEK 40 M AND WILL MAINLY BE REPORTED DURING FIRST HALF OF 2018​ Source text for Eikon: Further company coverage: (Stockholm Newsroom)