IDEX ASA interim report for the first half of 2016

Highlights

  • Revenue amounting to NOK 17.7 million from sensor deliveries in the first half of 2016, NOK 14.1 million in the second quarter
    This marks the definitive commencement of the commercial stage of the company with growing product shipments
  • LG Stylus 2 Plus launched with IDEX Cardinal Q touch sensor
    First market deployment with tier-one mobile OEM validates IDEX’s world-class sensor technology providing important reference for new customers
  • Secured additional Cardinal sensor design win for tier-one mobile customer
    Several design wins for major Asian customer
    Strong momentum of customer wins and further commercial validation of IDEX’s price/performance value proposition
  • Cardinal product family expanded by introduction of Cardinal N low-cost silicon touch sensor
    Ultra-small, low-profile fingerprint sensor that can be mounted on the front, side or back of the device
  • Introduced lower-cost production design for in-glass touch sensor with tier-one partner
    Superior industrial design and durability without compromising image quality 
  • Delivered commercial-grade samples of industry’s first flexible touch sensor for ISO-compliant card form factors, jointly with a major card systems integrator
    Supports strategic partnership and trials with a global payments company
  • Execution of change to direct sales model through recruiting of several sales staff members, including Yang Chiah Yee, SVP World Wide sales
  • Eagle family of off-chip touch sensors certified by the Fast IDentity Online (FIDO) Alliance
    Extensive testing ensures compliance and interoperability to accelerate adoption

Outlook and upcoming milestones

  • Continued volume shipments of Cardinal and Eagle touch sensors from existing customers and programmes
  • Additional design wins expected in coming quarters
  • Increase customer engagement on glass sensor over the next quarters and preparing supply chain for customisation
  • Launch of new polymer sensor products
  • Consumer trials and pilot program of ISO card sensor during the second half of 2016, followed by potential initial volume shipments towards the end of 2016
  • Expanding system integrator ecosystem and program opportunities for IDEX card sensor solutions
  • Engage in selected opportunities within the Internet of Things, leveraging existing Eagle products
  • Further expanding direct sales capabilities to enhance customer engagement and increase sensor distribution

Outlook
IDEX’s strategy is to drive adoption of its sensor technology across three mass markets: mobile devices, ID and smart cards and the Internet of Things.

IDEX is the only fingerprint sensor manufacturer in the market with the IP, knowhow and product portfolio to offer both conventional silicon sensors (the Cardinal product family) and next- generation polymer off-chip sensors (the Eagle product family) to leading OEMs.

The Cardinal sensor has a small form factor and provides highly competitive price and performance characteristics. The sensor has been launched in the LG Stylo 2 Plus and has been designed in to several customer programs. The Eagle sensor has a unique cost and performance position for medium-sized sensors. The sensor has been shipped in volume for integration into IoT products. IDEX continues to develop new products demonstrated by the launch in April of the Cardinal N sensor targeting mobile OEMs.

IDEX expects these breakthroughs to generate more design wins and production orders in the second half of 2016.

Customer evaluations of IDEX’s unique glass sensor solution will take place in the second half of 2016. Industrialisation of the commercial supply chain is in progress with aim to enable volume shipments by the end of 2016.

IDEX’s strategic partnership with a major global payments company is progressing well, and IDEX is currently expanding its production capability to satisfy the anticipated demand. IDEX believes that its world-first polymer touch sensor for ISO-compliant cards will give it a leading position for finger-print sensors in the card market. Card product trials are expected to take place shortly, and the company expects to progress to consumer pilot programmes during the second half of 2016. This will potentially lead to initial volume shipments late in 2016 or early 2017.

Over the past year, adoption of fingerprint sensors in mobile devices has become increasingly widespread, and growth is expected to accelerate as the use of biometrics proliferates. Secure payment services are among the leading drivers behind the need for secure and convenient authentication in the digital world.

IDEX has developed a growing portfolio of high-performance and cost-effective products. The company has leading-edge IP, a deeply knowledgeable organisation with an expanded direct sales team, tier-one industry partners, and a solid financial position. With these assets, the company expects to capture a significant share of the expanding, multi-billion dollar market opportunity for fingerprint sensors.

11 August 2016
IDEX ASA

Web: www.idexbiometrics.com 
Twitter: http://www.twitter.com/idexasa
LinkedIn: http://www.linkedin.com/company/idex-asa 

Contacts:
Henrik Knudtzon, CFO,  +47 9302 2827,  hk(at)idexbiometrics.com

About IDEX
IDEX has developed the world’s most advanced fingerprint imaging, recognition and authentication technology. IDEX’s innovative Intellectual Property (IP) is protected by a comprehensive portfolio of 45 granted and pending patent families, which continues to grow through ongoing innovation.

The IDEX business model is based on designing innovative fingerprint sensor IP and products. IDEX sells fingerprint sensor products or licences its IP to global original equipment manufacturers (OEMs). These partners utilise IDEX IP in a range of biometrically enabled products. The customers are either purchasing IDEX fingerprint sensor units or paying a royalty on units they produce.

IDEX’s addressable market represents a multi-billion unit opportunity, centered on three core markets:
* Mobile devices
* ID security and smart cards
* The Internet of Things

IDEX has an exciting and competitive product road map including swipe sensors, touch sensors with disruptive cost positions, and a unique in-glass solution. The company is currently commercialising these products and has announced a number of important OEM partnerships and end user design wins.

IDEX ASA (IDEX:NO) is a Norwegian public company, founded in 1996, and its shares are listed on the Oslo Børs (Oslo stock exchange). For more information, please visit www.idexbiometrics.com or contact IDEX at hk@idexbiometrics.com   
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This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
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