Research Note
2017-10-13
Viktor Westman
Fingerprint Cards’ CEO, Christian Fredriksson, has famously stated that in the tech business you either “innovate or die”. As can be discerned from our headline above we would like to complement that statement with “ship chip or die or die” as it is very much time for FPC now to get back to shipping a million chips/dies per day. Now, we do not believe that FPC will die but from the Q3 report, on October 26, we would very much like to understand what the heck is happening in China with regards to the latest profit warning. Namely, we request an explanation for how there can be such a dramatic sales drop (55-57 % y/y) in Q3 when the inventory has been normalized, excluding the effects from Apple, the dollar and the back-mounted sensors (product mix).
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