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Lund October 19, 2006
Inte
rim R
eport
Precise Biometrics AB (publ), Corporate Identity No. 556545-6596 Interim Report for the Period January – Sept 2006
• The Groupʹs net sales for the interim period totaled SEK 36.3 million (36.2) and
for the third quarter to SEK 7.4 million (7.7).
• The result for the interim period was SEK ‐30.7 million (‐27.0) and for the third quarter were SEK ‐12.0 million (‐12.9).
• The losses per share for the interim period were SEK ‐0.42 (‐0.36) and for the third quarter were SEK ‐0.16 (‐0.20).
• Liquid capital at the close of the interim period was SEK 14.3 million (70.9).
• The Board has nominated Thomas Marschall as the new President and CEO of the company replacing Christer Bergman, effective November 1. Thomas Marschall has been working for the company as Executive Vice President since September 1.
• On October 18 the Board has resolved on a preferential rights issue of approx SEK 85 million, subject to the approval of an extraordinary shareholders´ meeting. The issue is fully secured through declared intensions to subscribe and guarantees (see separate press release).
• The company received a follow‐up order from the US Department of State worth
SEK 2.3 million. The order was for over 2,000 Precise Biometrics combination fingerprint and smart card readers, Precise 200 MC and Precise 250 MC, which will be delivered during the fourth quarter.
• The Precise 250 MC has been approved for the US GSA APL list, which means
that the product fulfills the technical guidelines and requirements established for HSPD‐12. A number of US organizations and consortia have also installed Precise 250 MC in their testing labs.
• Precise Biometrics entered into a business agreement with Oki Electric Co.Ltd., a leading Japanese supplier of electronic and computer technology products.
The agreement is for the integration of Precise Biometrics’ technology into Okiʹs new product lines.
For further information, please contact Christer Bergman, President & CEO, Precise Biometrics AB. Telephone +1(0) 703 405 8255, or +46 (0) 730 35 67 26 E-mail [email protected] Precise Biometrics AB (publ.) is an innovative security company that supplies world-leading systems for fingerprint and smart card-based authentication. The company’s solutions replace keys, PIN codes and passwords and enhance the integrity of ID cards and passports. With its Precise Match-on-Card™ technology, the company is a market leader within smart ID cards. The product line includes systems for access control to buildings, computers and networks and for integration into ID cards and passports. The Precise Biometrics group has subsidiaries in Sweden, Great Britain, USA and a joint venture agreement in China. The group headquarters are in Lund, Sweden. Precise Biometrics is listed on the small cap list at the Nordic Exchange in Stockholm (symbol: PREC). For more information, please visit http://www.precisebiometrics.com/
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Lund October 19, 2006
President's comments on the Interim Report
The sales figures for the third quarter were affected by start‐up and production problems with the launch of the Precise 200 line, as well as continued unanticipated delays in ID card projects. The production problems experienced during the third quarter have now been solved, and the fourth quarter starts with a backlog of SEK 4.5 million. Despite the above‐mentioned problems this quarter has been characterized by strong trends that clearly show biometric technology is entering a new market phase. This positive market trend is particularly evident in the USA. Punctuated by the follow‐up order from the US Department of State for combination fingerprint‐ readers and smart card readers, Precise 200 MC and Precise 250 MC. Forecasters predict that autumn 2006 will provide a breakthrough for biometrics technology as all US Federal government agencies must begin to issue smart card‐based ID cards, known as PIV cards, to all employees and consultants. Precise Biometrics has gradually built up a market position in order to be prepared for this large‐scale security project, which forecasters estimate will include 10 million people. An important milestone in the process was reached during the third quarter with the Precise 250 MC, combination fingerprint and smart card reader, being approved and included on the US General Services Administrationʹs Approved Products List (GSA APL).
Within the national ID card segment, the three orders for ID cards and biometric passes, which were received through our partners during the first two quarters, have not been followed by new orders during the third quarter. However, intensive efforts are underway with several ID card projects, and those are anticipated to be close to being issued as contracts. In Thailand, Precise Biometrics conducting critical work to address the aftermarket, which developed once the country began issuing national ID cards. More than 10 million cards have now been issued, and there is a growing need for biometric readers and additional applications. Precise Biometrics’ business area, ICAO Systems (pass projects and projects in the travel industry), is at an interesting stage of development making it difficult to judge its future potential. Many EU countries have not been able to meet the deadline (28 August) for beginning to issue biometric passports and travel documents, clearly highlighting the difficulties associated with this market and efforts to predict sales trends within this high‐priority area. A significant development for the ICAO Systems business area during the third quarter was that Scandinavian Airlines test pilot beginning in September where Precise Biometrics technology is being used for baggage and traveler controls on domestic flights in Sweden. The test phase has been completed with good results, and the operation is going forward according to schedule. Precise Biometrics being chosen as total system supplier for SAS greatly increases the ICAO business area’s already very strong reputation within the transportation and travel industry across Europe. The transportation and travel market is leaving the pilot and test phases for biometric technology and is entering procurement and deployment phase. An important business development during the third quarter was the agreement with Oki Electric Co., Ltd. The agreement has been followed by an initial order, which allows for Precise Biometrics technology to be incorporated in to Oki’s new product lines. The cooperation with Oki illustrates how the market for biometrics is constantly expanding and reaching new markets and areas of application.
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Lund October 19, 2006
Sales and result
Interim period January – September 2006 Sales during interim period amounted to SEK 36.3 million (36.2). The Groupʹs net losses for the interim period were SEK ‐30.7 million (‐27.0). Operating costs for the interim period, excluding the cost of goods sold, totaled SEK 50.3 million, (40.4), including depreciation and write‐offs of SEK 7.1 million (6.0), and capitalization costs for development work of SEK 3.3 million (3.7). Earnings per share (average number of shares) during the interim period totaled SEK ‐0.42 (‐0.36). Gross margin was 54% compared with 38% during the corresponding period for the previous year. The reason for this is the increased proportion of license sales. Third quarter July – September 2006 Sales during the third quarter were SEK 7.4 million (7.7). Gross margin was 41%, compared with 32% during the corresponding period for the previous year. The Groupʹs net losses for the third quarter were SEK ‐12.0 million (‐12.9). Operating costs, excluding the cost of goods sold, were SEK 15.3 million, (15.3), including depreciation and write‐offs of SEK 2.1 million (2.0,) and capitalization costs for development work of SEK 1.2 million (0.8). Earnings per share (average number of shares) during the third quarter totaled SEK ‐0.16 (‐0.20). At the end of the second quarter, the companyʹs order book contained orders on hand for approximately SEK 4.6 million, excluding signed license agreements.
Financing and liquidity
Shareholderʹs capital, as of 30 September 2006, totaled SEK 80.7 million (117.6) and shareholder capital/share was SEK 1.11 (1.64).
Cash flow from current operations totaled SEK –8.2 million (‐6.7). Liquid assets at the close of the interim period were SEK 14.3 million (70.9).
The Board has resolved to do a preferential rights issue, subject to the approval of an extraordinary shareholders´ meeting, which is expected to bring in approx SEK 85 million.
Market and sales
Americas Sales volumes for the American market were at the same level as the previous quarter. However, interest in the Precise Match‐on‐Card™ technology, beyond the previously established cooperation with the US government, has increased during the quarter. Now, Precise Biometrics is seeing increased interest from many other areas, and including projects within health care market. A very important event for the business area occurred at the end of the quarter with the Precise 250 MC approval for purchase by US Federal agencies with the inclusion on the US General Services Administrationʹs (GSA) Approved Products List (APL). When products are added to the list, which can be compared to a purchasing guide, it signifies that the product meets specifications for use within the HSPD‐12 programs, and that agencies can purchase with confidence that it will perform in a way that meets their needs. In addition, a number of US organizations and consortia have also installed Precise 250 MC in their testing labs.
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Lund October 19, 2006
During the third quarter, the business area received a significant follow‐up order from the US Department of State for the combination fingerprint and smart card readers, Precise 200 MC and Precise 250 MC.
Sales for the business area during the interim period were SEK 4.6 million (10.5) and operating profit totaled SEK ‐4.9 milllion (‐1.8).
Sales for the business area during the third quarter were SEK 1.3 million (2.4) and operating profit totaled SEK ‐2.0 million (‐1.1).
EMEA The third quarter continued to have a high level of market activity. The company has worked with a number of large companies, such as Swisscom, in several projects. Furthermore a EU project has been activated. The test pilots that were started‐up earlier in the year are now in an important evaluation phase, and conditions are favorable for sales in the upcoming quarter. Overall, interest in biometrics and fingerprint recognition is high, in particular within the customer and market segments that are characterized by very high security requirements. Sales for the business area during the interim period were SEK 6.9 million (6.0), and operating profit totaled SEK ‐4.2 million (‐0.9). Sales for the business area during the third quarter were SEK 2.4 million (1.1), and operating profit totaled SEK ‐0.7 million (‐0.2).
National ID Card Group A number of projects in the national ID card group are entering final phases and are expected to result in orders during the coming quarter. No new orders were signed during the third quarter. Countries that are implementing ID cards represent an important aftermarket for Precise Biometrics. In Thailand more than 10 million cards have been issued, and there is a growing need for readers and additional applications.
During the quarter, cooperation and relations were strengthened with both system integrators as well as smart card manufacturers around the world. This work has a particularly high priority in light of the fact that many ID card projects are nearing a final negotiation phase. Sales for the business area during the interim period were SEK 6.3 million (6.0), and operating profit totaled SEK ‐3.3 million (3.5).
Sales for the business area during the third quarter were SEK 0.0 million (0.0), and operating profit totaled SEK ‐1.0 million (‐0.9).
ICAO Systems In September, Scandinavian Airlines, SAS, began a pilot using Precise Biometrics biometric technology to simplify luggage check‐in for travelers and to meet the stricter security requirements of the Swedish Civil Aviation Administration. The test started in Luleå at Kallax airport and was met with positive reactions from travelers. After Kallax airport, Precise Biometrics biometric technology is expected to gradually be introduced for domestic flights in Swedish airports.
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Lund October 19, 2006
Precise Biometrics being chosen as the total system supplier increases the ICAO business area and reinforces it already very strong reputation. This will prove to be valuable as other airlines around the world see to improve flow of passengers while increasing security through the use of biometrics. Sales for the business area during the interim period were SEK 2.0 million (0.0), and operating profit totaled SEK ‐0.6 million (‐1.9). Sales for the business area during the third quarter were SEK 1.1 million (0.0), and operating profit totaled SEK ‐0.3 million (‐0.6).
Fyrplus Intensive operations have been under way on the biometric project for SAS during the quarter. The schedule has been tight, but all deliveries were made on time, and SAS began the pilot as planned at Kallax airport in Luleå, Sweden in the middle of September. In order to test performance and capture the opinions of travelers using biometrics, the system was run in a live environment this month. Travelers and SAS, as the purchaser, have been very satisfied. An evaluation will take place in October; the decision to continue the roll‐out will be made at that time. Projects for customers in defense, telecommunications, and pharmacy have been under way without any large changes in terms of the previous quarter. Sales for the business area during the interim period were SEK 11.7 million (13.1), and operating profit totaled SEK 0.3 million (1.2). Sales for the business area during the third quarter were SEK 3.2 million (3.9), and operating profit totaled SEK 0.2 million (0.5). China (Loqware) The operations in China are progressing, however it has taken longer to agree on the business scope than the company anticipated at the beginning of the year. At executive level, Precise Biometrics are in discussions with the partner, Smart Unicorn Group, regarding certain business formalities in conjunction with the establishment and certain transactions in the original business deal, which have yet to be finalized. These discussions are expected to be finalized during the fourth quarter. Because of the above‐mentioned delays the company has updated its valuation of the investment in China and has come to the conclusion that there is no need for adjustment of the book values.
Sales for the business area during the interim period were SEK 7.8 million, and operating profit totaled SEK ‐4.1 million.
As the product range is not fully defined, sales for the business area for the third quarter were SEK 0.0 million, and operating profit totaled SEK ‐0.8 million.
Future prospects and market trends
At the beginning of the forth quarter, the company has overcome the delivery issues that caused problems during the third quarter and the companyʹs volume of orders, which at the
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Lund October 19, 2006
end of the quarter amounted to more than SEK 4.5 million, will be delivered during the fourth quarter. During the second and third quarters, Precise Biometrics noted several events that strengthened the companyʹs position in the US market. One of these events was when Precise Biometrics, as an additional element in the partner strategy, became a member of the American consortium, HSPD‐12 Interoperability Consortium at the end of the second quarter. A number of US organizations and consortia have also installed the Precise 250 MC fingerprint and smart card readers in their testing labs. During the third quarter, Precise Biometrics, Precise 250 MC, was approved and included on the US General Services Administrationʹs (GSA) Approved Products List (APL). The Precise 200 MC was also approved and added to the GSA APL. The fact that the company is on this list is particularly important, since this list functions as a type of purchasing guide for US Federal agencies. On the market for national ID cards, the future prospects are thought to be very good, since the market trend involves increasingly intensive project activity in a number of countries. Since many of the projects require political backing, it is difficult to create set schedules for them and delays have occurred in a number of projects. The companyʹs earlier assessment that further 3‐4 projects will be finalized within the remaining year, will not be fulfilled. However, we have not lost any projects; rather they remain unfinished and are delayed into 2007. The aftermarket is also important, for example, the demand for readers and other applications that can arise in countries that are starting to issue national ID cards, such as Thailand. With the order for SAS, Precise Biometrics sees a new opening in the airline industry in terms of passport projects and travel documents. The new security inspection requirements being set by the EU allows Precise Biometrics to take advantage of already having a proven solution to offer airlines. On the Chinese market, Precise Biometrics sees great potential in the future through cooperation with Smart Unicorn Solutions. The company anticipates finalizing business negotiations with positive results.
Precise Biometrics’ ambition is to be the leader in terms of technology as well as creating a strong market acceptance for smart card‐based biometric solutions based on Precise Match‐on‐Card™. This is a strategy that has been going on for several years and is now providing results in the form of new orders and rapidly growing interest from the market.The company is entering a new phase with new management, where the business will be focused on specific areas and increased cost efficiency to substantially improve the profitability. Organization and staff Precise Biometrics consists of the parent company, Precise Biometrics AB, with headquarters in Lund, Sweden and subsidiaries Precise Biometrics Inc. (in Washington DC, USA), Precise Biometrics UK., Ltd. Precise Biometrics Services AB, Fyrplus Teknik AB (with office in Karlstad, Sweden) and Loqware Sweden AB (with office in Lund, Sweden). As of September 30 2006, the Group had 68 (67) employees, 59 in Sweden, 8 in USA and one (1) in Great Britain. Of these employees, 49 (53) were men and 19 (14) were women. The agreement regarding the resigning CEO, Christer Bergman, means that he will still be available to the company up until 30 September 2007, which coincides with the timeframe in which he will receive a salary. This does not result in deductions in the financial statement for costs associated with his resignation.
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Lund October 19, 2006
The main conditions for the new CEO is that he will receive a fixed salary and benefits up to approximately SEK 1,6 million annually. A result based bonus can at the most reach 35% of the fixed salary and pension payments are 15% of the fixed salary. Investments in fixed capital assets
During the interim period, the Group made investments of SEK 1.0 million (0.4) in fixed capital assets.
During the third quarter, the Group made investments of SEK 0.6 million (0.2) in fixed capital assets.
Capitalizing development work
During the interim period, expenses for development work have been capitalized in the order of SEK 3.3 million (3.7). Depreciation of capitalized development work totaled SEK 2.9 million (5.0) during the interim period.
During the third quarter, development work was capitalized in the order of SEK 1.2 million (0.8). Depreciation of capitalized development work totaled SEK 1.0 million (1.5) during the quarter.
Patents
Precise Biometrics has a total of 28 approved patents, 13 of which are in Sweden. In addition, the company currently has 36 patent applications based on 15 inventions.
Shares
The company shares are listed on the Stockholm Stock Exchange O‐list since October 3, 2000, which was replaced on October 2, 2006 by the Nordic Stock Exchange and where the company was listed on the Small Cap list.
The total number of registered shares at the end of the quarter was 72,915,450. During the interim period, the average sales per day were SEK 2,253 thousand, and the listed share price ranged between SEK 4.42 and 7.45. During the third quarter, the average sales per day were SEK 1,944 thousand, and the listed share price ranged between SEK 5.80 and 7.45.
The five largest shareholders as of 30 September 2006
Name Proportion of capital and votes
Eden Capital Ltd 8.2 %
Odin fonder 5.2 %
Fjärde AP‐fonden 4.6 %
Storebrand fonder 4.4 %
Banco fonder 3.4 %
Source: SIS Ägarservice
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Lund October 19, 2006
Parent company
The sales for the parent company during the interim period were SEK 19.1 million (19.7). The operating expenses before taxes for the interim period amounted to SEK ‐25.4 million (‐19.1).
The sales for the parent company during the third quarter were SEK 5.2 million (2.8). The operating expenses before taxes for the third quarter amounted to SEK ‐7.7 million (‐9.2).
At the end of the interim period, 35 people were employed in the parent company. Liquid funds at the end of the third quarter amounted to SEK 10.6 million (67.3). The parent company has no debts to credit institutions as of the end of the third quarter. Investments in fixed capital asses were made in the amount of SEK 1.0 million (0.4).
During the interim period, the expenses for development work were capitalized in the order of SEK 2.8 million (3.7), which includes SEK 1.1 million (0.8) during the third quarter.
Nomination committee
In accordance with a resolution at the company AGM on April 26, 2004, a nomination committee has been established. The committee consists, of Svein Karlsson (Odin fonder), Tom Henderson (Eden Capital Ltd), Stefan Johnson (Fjärde AP‐fonden), and Leif Eriksröd (Storebrand fonder), who represent the four largest shareholders in the company as of September 30. The committee also includes chairman of the board, Lars Grönberg, who is also the convener.
Upcoming financial reporting dates
Interim Statement January – December 8 February 2007
Accounting principles
This interim report has been drafted in accordance with IAS 34, Interim Reports.
For information about applicable accounting principles, please see the companyʹs annual report for 2005. Starting January 1, 2006, the company is applying the amendment to IAS 21 ʺEffects of Changes in Foreign Exchange Rates – Net Investment in a Foreign Operationʺ, which entails for the company that certain internally generated exchange rate differences on receivable and liabilities are applied directly against equity and do not appear in the income statement. Previous periods have been recalculated, which entails that the results have been amended, but that equity capital remains unchanged. Otherwise, the accounting and valuation principles are unchanged when compared with those used in 2005.
Lund, Sweden, October 19, 2006
Christer Bergman, President and CEO, Precise Biometrics AB (publ)
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Lund October 19, 2006
Auditor´s Review Report
We have reviewed the interim report of Precise Biometrics AB (publ) for the period of January 1 to September 30, 2006. Management is responsible for the preparation and presentation of this interim report in accordance with the Annual Accounts Act and IAS 34, Interim Financial Reporting. Our responsibility is to express a conclusion on this interim financial information based on our review.
We conducted our review in accordance with Standard on Review Engagements (SÖG) 2410 ‐ Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by FAR. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing in Sweden (RS) and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that we would become aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit. Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information is not, in all essential respects, prepared in accordance with the Annual Accounts Act and IAS 34.
Lund, October 19, 2006
Öhrlings PricewaterhouseCoopers AB
Dan Andersson Åke Christiansson Authorized Public Accountant Authorized Public Accountant Auditor in charge
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Lund October 19, 2006
Income statement, Group (Figures in thousands SEK) Q3 Q3 Q1-Q3 Q1-Q3 Full year
2006 2005 2006 2005 2005
Net sales 7,403 7,738 36,298 36,223 45,053
Cost of goods sold -4,391 -5,255 -16,865 -22,588 -28,907
Gross profit/loss 3,012 2,483 19,433 13,635 16,146
Selling expenses -9,212 -6,639 -30,723 -22,839 -32,733
Administrative expenses -3,570 -2,799 -10,914 -7,694 -10,081
R&D costs -3,188 -4,540 -9,974 -13,358 -17,617
Other operating income and changes in value 685 -1,329 -1,002 3,485 3,860
Result from participations in associated companies 0 - 2,341 - -
-15,285 -15,307 -50,272 -40,406 -56,571
Operating profit/loss -12,273 -12,824 -30,839 -26,771 -40,425
Financial costs 256 -74 105 -192 -371
Profit/loss after financial items -12,017 -12,898 -30,734 -26,963 -40,796
Tax -3 2 -1 3 -238
Profit/loss for the period -12,020 -12,896 -30,735 -26,960 -41,034
Results per share, SEK -0.16 -0.20 -0.42 -0.43 -0.63
Results per share, SEK (after dilution) -0.16 -0.20 -0.42 -0.43 -0.63
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Lund October 19, 2006
Balance Sheet, Group (Figures in thousands SEK) 9/30/2006 9/30/2005 12/31/2005
Assets Intangible fixed assets 24,685 33,624 25,556
Tangible fixed assets 2,572 2,069 2,312
Financial fixed assets 151 - 151
Participations in associated companies 34,131 - -
Fixed assets held for sales - - 8,752
Inventories 5,584 10,243 8,588
Accounts receivable - trade 16,343 18,882 17,988
Other current receivables 5,198 4,214 3,128
Cash and bank balances 14,340 70,949 59,230
Total assets 103,004 139,982 125,705
Equity and liabilities
Equity 80,718 117,638 104,404
Long-term liabilities - 2,443 -
Current liabilities 22,286 19,901 21,301
Total equity and liabilities 103,004 139,982 125,705
Pledged assets 9,115 6,715 9,115
Contingent liabilities - - -
Cash Flow Statement, Group (Figures in thousands SEK) Q3 Q3 Q1-Q3 Q1-Q3 Helår
2006 2005 2006 2005 2005
Cash flow from operating activities
before changes in working capital -12,694 -5,127 -29,324 -16,320 -27,530
Cash flow from changes in working capital 4,515 -1,568 3,964 -9,612 -6,993
Cash flow from operating activities -8,179 -6,695 -25,360 -25,932 -34,523
Cash flow from investing activities -502 -8,507 -19,530 -17,923 -21,267
Cash flow from financing activities 0 62,327 0 69,972 70,188
Cash flow for the period -8,681 47,125 -44,890 26,117 14,398
Liquid funds at the beginning of the period 23,021 23,824 59,230 44,832 44,832
Liquid funds at the end of the period 14,340 70,949 14,340 70,949 59,230
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Key Figures, Group 9/30/2006 9/30/2005 12/31/2005 12/31/2004
Working capital (thousands SEK) 19,179 84,387 67,633 49,326
Liquid ratio 161% 473% 377% 464%
Equity/assets ratio 78% 84% 83% 84%
Return on average equity - - neg neg
Capital employed (thousands SEK) 80,718 120,081 104,404 67,769
Return on capital employed - - neg neg
Profit/loss per share (SEK) -0.42 -0.36 -0.63 -0.65
EBITDA (thousands SEK) -25,326 -16,253 -27,062 -25,878
Equity per share (SEK) 1.11 1.64 1.45 1.11
Number of shares 72,915,450 71,719,200 71,790,450 60,915,450
Number of employees at the end of the period 68 67 69 35
Average number of employees during the period 68 62 65 34
Definitions - Key Figures
Working capital: Current assets less current liabilities
Liquid ratio: Current assets less inventories divided by current liabilities
Equity/assets ratio: Equity as of the balance sheet date divided by total assets as of the balance sheet date
Return on equity: Profit/loss for the period divided by average equity
Capital employed: Balance sheet total minus non-interest-bearing liabilities and provisions
The average capital employed has been calculated as initial plus outgoing capital employed divided by two
Return on capital employed: Profit/loss after financial items plus financial expenses divided by the average capital employed
Profit/loss per share: Profit/loss after tax divided by the average number of shares. The options are
not included in the calculation since the subscription price is higher than the market rate at the 30th of June 2006.
If all outstanding options are called upon the number of shares will be 74,215,450
EBITDA: Profit/loss before net financial items, depreciations, write-downs and tax
Equity per share: Equity at the end of the period divided by the number of shares at the end of the period
Quarterly return ratios are not reported.
Changes in Equity, Group Q1-Q3 Q1-Q3 Full Year
(Figures in thousands SEK) 2006 2005 2005
Initial Equity 104,404 67,769 67,769
New share issue 7819 75960 76,537
Options - 420 262
Translation difference -770 449 870
Profit/loss for the period -30,735 -26,960 -41,034
Equity at the end of the period 80,718 117,638 104,404
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Turnover and profitability by business area Q3 2006 (Figures in thousands SEK) Americas EMEA 2) NID 3) ICAO 4)
2006 2005 2006 2005 2006 2005 2006 2005
Net sales 1,294 2,408 2,369 1,085 39 0 1,113 -
Expenses 1) -3,261 -3,503 -3,049 -1,282 -1,053 -867 -1,454 -554
Operating profit/loss -1,967 -1,095 -680 -197 -1,014 -867 -341 -554
Fyrplus Loqware Others5)
2006 2005 2006 2005 2006 2005 Net sales 3,220 3,904 - - -631 341 Expenses 1) -3,053 -3,427 -820 - 1,924 -708 Operating profit/loss 167 477 -820 - 1,293 -367 Turnover and profitability by business area Q1-Q3 2006 (Figures in thousands SEK) Americas EMEA2) NID3) ICAO4)
2006 2005 2006 2005 2006 2005 2006 2005
Net sales 4,630 10,487 6,932 6,038 6,252 6,007 2,029 -
Expenses 1) -9,531 -12,333 -11,156 -6,907 -2,974 -2,505 -2,672 -1,910
Operating profit/loss -4,901 -1,846 -4,224 -869 3,278 3,502 -643 -1,910
Fyrplus Loqware Others5)
2006 2005 2006 2005 2006 2005 Net sales 11,716 13,095 7,800 - -3,060 596 Expenses 1) -11,451 -11,916 -3,690 - 3,215 -2,142 Operating profit/loss 265 1,179 4,110 - 155 -1,546 1) The above expenses include Cost of Goods Sold as well as operation expenses for each business area/unit 2) Europe, Middle East and Africa 3) National ID Card Group 4) International Civil Aviation Organization 5) In Others the Group's elimination of internal sales is included
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With reference to the current Interim Report, we have the pleasure of inviting investors and journalists to the following information session today Telephone conference in English
• Conference starts 11:00 (CET) • To participate, dial +46 (0)8 672 81 51 • Enter password: Precise Biometrics
A telephone operator will record your name and connect you to the conference. He or she will also give you information about what to do if you have questions.
Telephone conference in Swedish
• Conference starts 12:00 PM (CET) • To participate, dial +46 (0)8 672 81 50 • Enter password: Precise Biometrics
A telephone operator will record your name and connect you to the conference. He or she will also give you information about what to do if you have questions.
The following people from Precise Biometrics are participating
• Christer Bergman, President and CEO • Thomas Marschall, (President and CEO effective November 1) • Niklas Andersson, CFO • Ann‐Sofi Höijenstam, Corporate Communications Manager
You can also visit www.precisebiometrics.com/presentations where you can download a presentation.
For more information, contact Christer Bergman, President and CEO, Precise Biometrics AB Telephone +46 (0)730 35 67 26 or +1 703 405 82 5 5E-mail: [email protected] Precise Biometrics AB (Headquarters) Scheelevägen 30 Box 798, SE- 220 07 Lund Telephone +46 (0)46 31 11 00 Fax +46 (0)46 31 11 01 E-mail [email protected]
Precise Biometrics AB (publ.) is an innovative security company that supplies world-leading systems for fingerpr
int and smart card-based authentication. The company’s solutions replace keys, PIN codes and passwords and enhance the integrity of ID cards and passports. With its Precise Match-on-Card™ technology, the company is a market leader within
smart ID cards. The product line includes systems for access control to buildings, computers and networks and for integration into ID cards and passports. The Precise Biometrics group has subsidiaries in Sweden, Great Britain, USA and a joint venture agreement in China. The group headquarters are in Lund, Sweden. Precise Biometrics is listed on the small cap list at the Nordic Exchange in Stockholm (symbol: PREC). For more information, please visit http://www.precisebiometrics.com/
