Precise Biometrics Q4: good cash flow but high costs

Research Update

2009-02-06

09:21

Precise Biometrics’ Q4-report was slightly weaker than anticipated. Sales came in at SEK 11.5m vs. our expectations of SEK 13m. EBIT excluding write down of SEK 29.7m was SEK -6.1m compared to our estimate of SEK -5m. However, cash flow was strong in the quarter (SEK +4m) and that is important. Looking forward, the CEO of Precise Biometrics still seems optimistic about more NID-orders in 2009. He is also seeing a possible break-even during 2009. Moreover, even though the write down in China, there is still some possible potential left with SUS. Together with the strong cash flow in Q4, the credit facility of SEK 15m, a share issue is not needed in the short run but maybe later in 2009. We have done some small downward revisions to our estimates.

GJ

Greger Johansson

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