July 21, 2017 / 6:16 AM / 2 years ago

Fingerprint Cards says teams up with Qualcomm as Q2 profit misses forecasts

STOCKHOLM, July 21 (Reuters) - Swedish biometric firm Fingerprint Cards (FPC) said on Friday it had struck a deal to include its sensors in several Qualcomm products, after posting second-quarter earnings below market forecasts.

The fingerprint sensor maker has warned on profits three times since the end of 2016, eroding confidence in the company, which - combined with sector oversupply and weakened demand from smartphone makers - has dented shares.

FPC said in Friday’s report that the industry-wide inventory build-up of sensors, which had a negative impact on second quarter results, was now back to normal.

“We have continued to secure important orders which will result in increasing market shares with some major customers,” CEO Christian Fredrikson said in a statement.

In a separate statement FPC said its technology would be included in low- and mid-tier Snapdragon mobile platforms from Qualcomm.

The company posted an operating profit of 72 million Swedish crowns ($8.75 million), lower than the 155 million seen by analysts in a Reuters poll, and sharply down from 710 million in the year-ago quarter.

The gross margin, excluding provisions for an obsolescence reserve, remained at 42 percent.

FPC scrapped its full-year guidance and stopped giving forecasts in March, after warning first-quarter revenues would decline by more than 50 percent due to weakened demand and inventory build-up.

FPC’s customers are mainly Chinese smartphone makers such as Huawei and Oppo. It made its big breakthrough in 2015 as demand for fingerprint sensors in smartphones and tablets soared. ($1 = 8.2251 Swedish crowns) (Reporting by Olof Swahnberg and Helena Soderpalm; Editing by Muralikumar Anantharaman)

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