Precise Biometrics’ Q1-report was more or less as expected. Sales came in at SEK 12.2m vs. our expectations of SEK 11.5m. EBIT was SEK -2.4m compared to our estimate of SEK -3m. However, cash flow was very weak and the cash balance is approaching zero. On the other hand, a credit facility of SEK 15m is available.
Looking forward, the CEO of Precise Biometrics still seems optimistic about more NID-orders in 2009. Moreover, the Gemalto-agreement is a very promising deal but the total scope is unclear.
We have done some small upward revisions to our estimates. The Company may reach break-even in 2009, but at best only on a quarterly basis.