IDEX ASA interim report for the first quarter of 2016
First quarter and recent highlights
· Shipped early production volume of Cardinal touch fingerprint sensor to fulfil first order from tier-one mobile OEM
Clear validation of world-class sensor technology and requisite supply chain
· Repeat production volume order for Cardinal sensor
Builds on design win in December and initial production order in February
· Expanded Cardinal product family with introduction of Cardinal N low-cost silicon touch sensor
Designed to address ultra-small, low-profile fingerprint sensing applications
· Introduced cost reduced production design for the in-glass touch sensor with tier-one partner
Provides superior industrial design and durability without compromising image quality
· Delivered commercial-grade samples of first flexible touch sensor for ISO-compliant cards
Supports strategic partnership and expected trials with global payments company
· Showcased latest sensor solutions at CES in Las Vegas and Mobile World Congress in Barcelona
Strong interest from leading OEMs and ecosystem partners
· BIO-key introduced compact Windows Certified USB fingerprint reader leading to IDEX Eagle sensor shipments
Addresses growing market for adding biometric authentication to existing devices
Outlook and upcoming milestones
· Positioned for accelerated growth within multi-billion dollar market for fingerprint sensors with strong product portfolio, proven production volume manufacturing and order fulfilment capabilities
· Shipments of Cardinal and Eagle touch sensor ongoing, current orders expected to be fulfilled in the second quarter
· OEM launch of tier one handset incorporating Cardinal sensor late in the second quarter
· Continue seeding additional design win opportunities with active sampling of a broad range of silicon- and polymer-based sensors to multiple OEMs
· Further cooperation with global payments partner on flexible touch sensor for ISO cards, in support of expected card product trials late in the second quarter 2016
· Consumer trials and pilot for the card sensor during the second half of 2016, and initial volume shipments expected towards the end of 2016
· Targeting customer evaluations of newest in-glass sensor solutions mid year and industrialising supply chain for volume by the end of 2016
· Expanding direct sales capabilities to increase IDEX control of sensor distribution
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 (IoT).
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 Eagle sensor has a unique cost and performance position for medium-sized sensors. Additionally, the company continues to develop new products as demonstrated by its April launch of the Cardinal N sensor targeting mobile OEMs.
Recently IDEX received production volume orders for both the Eagle and the Cardinal sensors in various market segments. Shipments of the Cardinal sensor for the tier-one mobile OEM and of the Eagle sensor for IoT products commenced in the first quarter of 2016. IDEX expects these market adoption breakthroughs to generate more design wins and production orders throughout 2016.
Work on IDEX’s unique in-glass sensor technology has also progressed with a cost-reduced design. IDEX expects lead customer evaluation by mid-year 2016 and industrialising supply chain for volume by end of 2016.
IDEX’s strategic partnership with a major global payments company is proceeding well, and IDEX is currently expanding its production organisation to satisfy the anticipated demand. IDEX believes that its world’s-first polymer touch sensor for cards will give it a leading position for fingerprint sensors in the cards market. Card product trials with our partner, for this one-of-a-kind sensor, are expected to take place in late second quarter. IDEX expects to progress to consumer pilots during the second half of 2016, potentially leading to initial volume shipments by the end of 2016.
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. We have leading-edge IP, a deeply knowledgeable organisation with an expanded direct sales team, tier-one industry partners, and a solid financial position. We expect the company to capture a significant share of this expanding, multi-billion dollar market opportunity for fingerprint sensors.
11 May 2016
Henrik Knudtzon, CFO, +47 9302 2827, hk(at)idexbiometrics.com
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 more than 225 patents, and IDEX continues to enhance the portfolio with its commitment to ongoing world class research and innovation.
The IDEX business model involves the design of fingerprint sensor IP and products. IDEX sells fingerprint sensor products, and licences its technology to global Original Equipment Manufacturers (OEM) partners. These partners utilise IDEX IP in a range of innovative biometrically enabled products and pay IDEX either a royalty on every product item produced, or purchase the fingerprint sensor units.
IDEX’s addressable market represents a multi-billion unit opportunity, centred on three core markets:
* Mobile Devices
* ID security and Smart Cards
* The Internet of Things
IDEX has an exciting and competitive product ready 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 these products.
In February 2016, IDEX announced that it had received its first production order for its Cardinal touch fingerprint sensor optimized for tier-one mobile handsets, IDEX will begin to ship units in the second quarter 2016.
IDEX also recently announced it had developed the world’s first flexible polymer touch sensor suitable for ISO-card integration.
IDEX ASA (IDEX:NO) is a Norwegian public company, founded in 1995, and its shares are Listed on the Oslo Børs (Oslo stock exchange). For more information, please visit www.idexbiometrics.com or contact IDEX at email@example.com