Annual Report 2010

Summary of the financial year 2010

Precise Biometrics completed a new strategic platform in 2010 – a new business plan targeting 2015, and a new customer-oriented organization. The Company has also refined and packaged its technology to clarify its product range for the market. Net profit for the year was SEK -14.6 million (-21.8) after tax, as a result of a lower level of sales. The positive aspect is that the trend of annual improvements in profits continues, as a result of improved margins and greater cost-efficiency.

Annual sales

During the year Precise Biometrics had a break-trough on the African market as the partner Interswitch launches a SmartCity card in Cross River State in Nigeria. The SmartCity card is a unique government ID card project with biometrics from Precise Biometrics, which combines a traditional ID card with e-payment. The card is intended to function in the entire federal state and all the three million citizens in it will receive their own card.

Precise Biometrics also received two follow-up orders for a total value of SEK 6.7 million for Precise 200 MC, combined fingerprint and smart card readers. The readers will be used together with Precise Match-on-Card™ in the continued roll-out of an ID card project for government employees for an existing customer in the Middle East.

Precise Biometrics’ partner OKI ordered licenses for a government project in Asia, where the company’s technology is embedded in third-party products. Match-on-Card licenses have also been sold during the year to established partners, for
example Gemalto and SafeNet.

New products

Precise BioMatch™ ANSI 378 was launched during the first six months of the year, an integration tool to embed solutions based on standardized fingerprint technology. ANSI 378 has been specified by US government agencies for the so-called PIV card they issue to all their employees.

Precise Biometrics has released a new product for integration of the ISO standardized Match-on-Card – Precise BioMatch ISO Match-on-Card. This product is based on technology from the fingerprint extractor that gave the Company the highest ranking in Ongoing MINEX.

Innovations also include a logon product with fingerprint recognition for Windows 7. Precise BioMatch™ Logon for Windows 7 is a solution for simple personal logon to computers by means of fingerprint recognition in Windows 7. The purpose of the launch was among other things to improve the opportunity of testing biometrics in everyday life, before a decision is made on more extensive investments in Match-on-Card technology.

Projects and events

Precise Biometrics participated during the year in several major industrial events, for example the GSMA Mobile World Congress, which is the largest annual event in the mobile sector. The Company demonstrated the matching of fingerprints on SIM cards in mobile phones for ticketless travel, together with Sun Microsystems. Precise Biometrics also participated in the US events RSA Conference and HIMSS, together with Gemalto. Gemalto demonstrated Gemalto.NET Bio, which is based on Precise Match-on-Card and the Windows Biometric Framework for Windows 7.

To highlight its position as a market leader, Precise Biometrics launched a website for Match-on-Card: www.matchoncard.com. The site is intended as an exhaustive information point for the technology and its business utility for interested parties in Match-on-Card, primarily end customers.

New strategic business platform

A strategic platform was completed by the end of the year for the future development of the Company. An ambitious business plan has been prepared to reach forward to 2015. As part of the plan, the Company has developed a new customer-oriented organization. The objective of the business plan is to enable Precise Biometrics to be listed on Nasdaq OMX Mid Cap in 2015. The new organization involves three business areas: Mobile, IAM (Identity and Authentication Management) and Access Solutions. Mobile is a new business area that focuses on the rapid development of SmartPhones and Tablet PCs.

There is more information on the new platform and how to achieve the growth goals in CEO Comments. Read more about the business areas in Business areas.