Precise Biometrics Q2: issues are arising in China

Research Update

2008-07-23

11:35

Precise Biometrics Q2-report was slightly weaker than expected. Sales came in at SEK 8.9m vs. our expectations of SEK 10m. Together with a lower gross margin but a cost base under control, the EBIT number became more or less as expected. Looking forward, the Company’s CEO was still very optimistic about the future for 2008 and 2009. The reasons for this are probably a good pipeline of prospects and good response from customers. However, revenues are still low and the Chinese operation (via SUS) is running out of cash. Precise Biometrics reiterated that they will receive two-four more NID-project during 2008. We have trimmed our estimates downwards slightly. After only SEK 16m in the cash balance we see a risk of a share issue in the next 9 months.

GJ

Greger Johansson

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