IDEX ASA interim report as at 30 September 2014
IDEX ASA interim report as at 30 September 2014
- Touch sensor design win for a flagship smartphone from Asian second-tier mobile OEM
First decision by mobile OEM to incorporate IDEX first-generation sensor in product development for a smartphone program
- Strategic partnership with leading touch semiconductor vendor FocalTech Systems to supply swipe fingerprint sensors
Focus on rapidly growing Chinese market for cost-sensitive mobile devices, including smart phones
- Initial order delivered for swipe sensors to Card Tech tier one manufacturing partner
Sensors integrated into Card Tech’s biometric cards for the access control and ID markets
- Industry veteran Michael Barrett joins IDEX’s Strategy Advisory Council
President of industry consortium FIDO, former Chief Information Security Officer at PayPal
- Strengthens business development and customer support in Americas and Asia Pacific
Experienced executives recruited to support global commercialisation and expected rapid growth
- World Wide Touch Technology upgrades fingerprint sensor order from swipe to touch sensors
Reflecting the positive market reaction to these devices
- IDEX and Card Tech launches world first biometric card with ISO standard form factor which is mass production ready
Validating IDEX’s strong capability for fingerprint sensors in cards compatible with global card infrastructure
- IDEX enters into MOU with Amkor Technology to formalize a strategic mass volume manufacturing partnership
Enabling IDEX to deliver fingerprint sensor in mass volume through tier-one manufacturing supply chain
Outlook and key upcoming milestones
- Continuing to develop first-tier partnerships providing high-volume manufacturing and channels to exploit identified opportunities
- Demonstration of ground-breaking second-generation fingerprint touch sensor prototype to meet demand for lower cost and improved accuracy to be jointly promoted with Cypress Semiconductor to leading mobile OEMs in fourth quarter 2014
- Initial revenues by end of 2014 including volumes of touch sensors being shipped to World Wide Touch
- Market deferrals of smartphones with integrated fingerprint sensors in second half of 2014 due to shift in demand towards small touch sensors with increased accuracy and improved aesthetics
- Increased demand for swipe is also expected in 2015 for mid/low end devices
- Biometric authentication for mobile payments expected to drive widespread market adoption after launch of Apple Pay
- On target for sampling of second-generation touch sensors in the first half of 2015
- Continued development and interest in unique IDEX in-glass sensor solution. Expecting sampling of swipe sensor in 2015
- Strong growth in demand for biometric authentication in cards also expected; IDEX has developed unique flexible fingerprint sensors and low footprint algorithms suitable for this market
- Continuously strengthening patent and IP position with significant R&D investment
- Resource expansion and hiring key staff to accelerate business execution
- Expecting to gain strong share of multibillion-dollar market for fingerprint sensors as IDEX partnership strategy delivers leading patent-protected products to the rapidly developing market
IDEX’s strategy is to leverage its core technology across three mass markets; mobile devices, ID & smart cards and devices being part of the Internet of Things.
IDEX expects continued rapid mass-market adoption of fingerprint sensors on consumer devices and cards resulting from the critical mass of smartphone adoption. Analysts estimate 300-350 million mobile terminals with fingerprint sensors by late 2014, and by 2020 this is expected to grow to 1.4 billion. The growth is driven by trends like password replacement, increased attention to security and introduction of mobile payment, as exemplified by the launch of the mobile payment system Apple Pay in September. IDEX’s strategy is to be a leading fingerprint sensor player in these high-growth markets.
During the year IDEX have announced a range of partnerships with tier-one companies across the value chain. These partnerships validate the market’s belief in IDEX technology, and enables IDEX to ensure a robust and mass scalable delivery model. Moreover, the partners have deep customer relationships with OEM’s giving a channel to market and distribution for IDEX. The company expects to continue securing first-tier partnerships in the months to come.
Following product sampling activity of swipe and first-generation touch sensors, IDEX is now at the beginning of the commercializing phase. IDEX anticipates initial revenues before the end of 2014.
The IDEX is on target for sampling the second-generation touch sensor in the first half of 2015. The partnership with Cypress ensures our ability to deliver this new family of sensors to first-tier handset manufacturers.
The next step is to implement sensors in glass. The company believes that this revolutionary sensor implementation is unique to IDEX and will provide the ultimate solution for integration of fingerprint recognition in mobile devices. Sampling of swipe sensors implemented in glass is expected in 2015.
The partnership with Card Tech has also resulted in traction in the card market. Card Tech introduced an industry first ISO compliant biometric card, and the market response has been very positive. IDEX expects that that the interest will lead to sensors deployed in cards during the second half of 2015.
IDEX will continue to strengthen the team with high-calibre individuals in order to support global commercialisation and expected rapid growth.
IDEX is solidly funded to exploit the multibillion-dollar market opportunity in the near future, leveraging our differentiated road map underpinned by a strong patent position that is now building customer traction.
The full report with interim financial statements are enclosed in pdf file or use the link at the very end of this notice.
11 November 2014
Hemant Mardia, CEO, +44 7788 922 171, hm(at)idexbiometrics.com
Henrik Knudtzon CFO, +47 9302 2827, hk(at)idexbiometrics.com
IDEX ASA specialises in fingerprint imaging and recognition technology. The company has a strong patent portfolio consisting of more than 20 patent families including more than 200 granted patents, as well as cross licenses with Apple. IDEX has a highly competitive product road map including swipe sensors, touch sensors with disruptive cost positions, and a unique in-glass solution. The company is currently in the process of commercialising the products.
IDEX’s addressable market represents a multi-billion unit opportunity, centred on three core markets: Mobile, ID & smart cards and the Internet of Things. IDEX has seen a substantial increase in interest from global OEMs in the last quarters, and is positioned as of three independent players with the relevant IP to capture market share.
IDEX ASA (ticker IDEX) is a Norwegian public company listed at the Oslo Axess market place on the Oslo Børs (Oslo stock exchange). For more information, please visit www.idexbiometrics.com or contact IDEX at firstname.lastname@example.org