IDEX ASA interim report for the fourth quarter and preliminary result for 2013
· Invesco funds invested NOK 300 million in IDEX in January 2014:
Funding is a landmark in the accelerating development of IDEX as a global leader in fingerprint market
· Industry veteran Larry Ciaccia, former CEO of AuthenTec, recently joined IDEX’s Strategy Advisory Council:
Significant industry knowhow advising on strategic trends in rapidly developing fingerprint mass market
· Secured volume order from world-class electronics manufacturer World Wide Touch Technology in January:
First commercial launch of IDEX sensor embedded in consumer electronics devices
· Opened office in Silicon Valley, development centre in Boston, and representative office in Hong Kong:
Global presence enables access to key customers in important regions
· Expanded scope of current agreement with mobile partner,
today disclosed as CrucialTec, a global leader in mobile input solutions:
Demonstrates traction in commercializing product roadmap for mobile communications mass market
· Joined the FIDO Alliance (Fast IDentity Online), creating secure standards for strong authentication:
Cooperates with major industry players to ensure interoperability and improve user convenience
Other highlights in 2013
· Showcased a technology concept for sensor in glass at the Mobile World Congress 2013:
Attracting strong interest from mobile communications equipment and component manufacturers
· Entered into partnership with global mobile communications partner CrucialTec:
Major breakthrough in the mobile market
· Strengthed management team:
Dr. Hemant Mardia recruited as new CEO, Dr. Ralph Bernstein continuing as CTO
· Prepared SmartFinger Colibri for market launch:
Aimed at high-volume mobile and embedded markets
· Apple/AuthenTec verified licensing agreement with IDEX:
Recognition of IDEX’s unique IP and patents
· Acquired touch sensor patents, technology and employed executive team from PicoField:
Broadened IDEX’s protected technology base, added senior industry executives including founders of Validity
· Completed two significant private placements:
Raised a total of NOK 84.2 million from World Wide Touch Technology as strategic investor
· Apple’s launch of iPhone 5S confirmed that capacitive sensor is the optimal solution:
Opening multibillion-dollar market for IDEX with few competitors
· Increased activities, adding R&D and sales staff:
Accelerating development of cost-disruptive touch sensors
· Broadened global sales and support footprint to serve highly elevated interest in biometric solutions
Outlook and key upcoming milestones
· New touch sensor launched jointly with CrucialTec, a collaborative product
responding to mobile market demand for small-area sensors
· IDEX’s disruptive cost touch sensor and enhanced swipe development to expand market applications in 2015
· Mobile World Congress opening on 24 February 2014:
showcase and demonstration of current sensors and roadmap at IDEX’s booth and partner activities
· Swipe and touch sensor sample deliveries from first quarter 2014 for insertion in consumer devices
· Initial revenues from swipe and new touch sensors expected in second half of 2014
· Funding for resource expansion to accelerate business execution is in place
· IDEX is one of two independent, principal vendors of capacitive sensors
· Focus on strategic tier-one partnerships within the consumer electronics market to drive product insertion
· Setting up scalable supply chain and multiple sourcing for high volume capability and cost efficiency
· Continously strengthening patent and other IP position
Developments in the fourth quarter confirmed that 2013 was the breakthrough year for the fingerprint industry, with adoption of fingerprint sensors into several consumer products.
Following strengthened management team and added staff in 2013, IDEX has taken several significant steps forward in 2013 and early in 2014.
IDEX is now one of only two in-dependent principal vendors of capacitive sensors, which is the preferred sensing principle for consumer devices as a proven mass deployed solution. IDEX holds a unique, strong and continuously expanding IP and technology position to deliver a best in class product portfolio.
Customer activity has underlined strong demand for small form factor touch sensors particularly in mid and high-end smartphones. This shift has been promoted by the success and positive user experience of the small touch sensor launched by Apple on the iPhone 5S. The relative value of touch sensors is several times that of swipe sensors and will lead to significant market scale increase for IDEX. IDEX has entered into a partnership with CrucialTec to jointly launch a first generation of small-area touch sensors. Sampling is planned in the first quarter of 2014 to secure volumes in the second half of the year. Con-currently, IDEX is continuing the development of its polymer-based flex sensor technology, which combines IDEX and its recently acquired PicoField technology, and offers benefits in high flexibility of form factor, higher performance-to-cost ratio and disruptive cost compared with all silicon sensors.
Low-cost swipe sensors are likely to be deployed in cost- and size-critical mobile devices such as low and mid phones and also wearables. IDEX is determined to offer the optimal price/performance in these higher-volume markets. IDEX is also developing demonstrators to advance a button-free in-glass solution.
The sales and marketing staff and activities are growing, with focus on strategic tier-one partnerships within the consumer electronics market. The company has presences on both the east and west coast of the United States, as well as in the South-East Asia region. Employees and contractors have been added in order to deliver products and provide support to existing and new partners.
The rapid adoption of fingerprint sensors is creating a multi-billion dollar mass-market opportunity for IDEX. The first volume order for 300,000 sensors was secured in January 2014.
The board of directors of IDEX expects 2014 to show exceptional growth for biometric devices with IDEX gaining market traction as a key contributor.
IDEX has now a robust financial base for pursuing the commercial opportunities ahead.
The full report and interim financial statements are enclosed in pdf file or use the link at the very end of this notice.
21 February 2014
Hemant Mardia, CEO, +44 7788 922 171, hm(at)idexbiometrics.com
Kristian Wiermyhr, VP strategy and sales, +47 41273360, kw(at)idexbiometrics.com
Erling Svela, CFO, +47 4062 1040, erling.svela(at)idexbiometrics.com
IDEX ASA specialises in fingerprint imaging and recognition technology. IDEX’s vision is to ensure individuals a safe, secure, and user-friendly use of personal ID. IDEX has developed the award-winning SmartFinger technology platform based on the company’s core intellectual property, including the patented fingerprint imaging principle, sensing scheme and chip design. Combined with core software solutions for imaging and authentication, the SmartFinger technology enables on-device enrollment, template storage and verification within the very same module. SmartFinger solutions can be seamlessly integrated into a variety of embedded applications such as mobile phones, one-time password devices, Smartcards, payment and ID cards, payment terminals, access control devices and biometric security and login tokens.
IDEX ASA (ticker IDEX) is a Norwegian public company listed at the Oslo Axess marketplace on the Oslo Børs (Oslo stock exchange). For more information, please visit www.idexbiometrics.com or contact IDEX at firstname.lastname@example.org