Fingerprint Cards (FPC) Year-end report 2013

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| Source: Fingerprint Cards AB
Best quarter and year in terms of sales - now's the time to accelerate

CEO's comments
In terms of sales, the fourth quarter of 2013 was the best quarter to date in
the history of Fingerprint Cards (FPC), with sales of SEK 34 M. During the
quarter, fingerprint sensor technology entered the mass market, driven largely
by the launch of Apple's iPhone 5s with Touch-ID, and it became apparent that
the biometric industry was again becoming the subject of major focus. FPC
accounted for by far the largest number of all Design Wins (DWs) for future
Smartphone and Tablet products. It is with pride that I am able to confirm that
FPC was chosen in 2013 as a supplier in 21 of 22 launched mobile devices with
integrated fingerprint scanners. For FPC, the fourth quarter of 2013 also meant
that we launched our FPC 1020 capacitive touch sensor, which received
considerable attention from customers and the industry. Our product portfolio
offers sensors for all types of applications and users, which will position us
well in a market with growing demand for fingerprint sensors. During the
quarter, we also announced that we had secured an initial DW for the 1020 for a
flagship model from one of the world's five largest manufacturers of
smartphones, as well as an order for the same 1020 totaling SEK 11 M from China,
which is clear confirmation that our most recent product offering has got off to
a flying start.

Our opinion of the market remains very positive, with several external
analytical firms now are in line with our market forecasts. A global survey
conducted by Ericsson Consumer Labs, based on interviews with 100,000 consumers
from 40 countries, confirms our opinion that future growth will be very strong.
Based on consumer responses, Ericsson believes that Fingerprint recognition will
be one of the ten most popular consumer trends for 2014 and the following years.
We view this trend, combined with the trend showing that sales of smartphones
now exceed sales of "feature phones" globally, as a very strong driver to use
the fingerprint sensor as the start key and for authentication of secure mobile
transactions.

During the fourth quarter of 2013, a number of key programs of cooperation
between FPC and partners were announced. Together with Nok Nok Labs, we
introduced a broad infrastructure solution for secure online user verification
based on smartphones and tablets with integrated fingerprint sensors. This
solution is the first result of our joint activities to support the FIDO
Alliance and our objective is to assist the FIDO Alliance in achieving its goal
of transforming the way we currently verify our online identity, and also to
help FPC customers to easily become a part of this eco system. In connection
with the launch of the 1020 Touch fingerprint sensor, we announced that we are
now partnering with Microsoft, and we see a very large market opening thanks to
Microsoft's efforts to integrate biometrics and, in particular, fingerprint
sensors into Windows 8.1 and in units that are currently, and will be in the
future, based on future Windows.

In December 2013 and January this year, two private placements of 5,000,000
Class B shares were implemented, generating a capital contribution totaling
slightly more than SEK 258 M before issue costs. What we see now is that the
company is well capitalized and that we will continue with the expansion we
initiated to meet the demand for our products and to build the capacity that
being a global supplier necessitates. During the quarter, we opened a new office
in Malmö with recruitments in development, customer support and sales, thus
adding valuable and experienced expertise from the mobile industry to the
company. Meanwhile, we are continuing to recruit resources for our head office
in Gothenburg and will expand in customer support, as well as in sales globally,
particularly in markets where we have major customers and where we know that
success requires close relationships.
As a result of the successes we recorded in 2013, especially during the very
strong fourth quarter, NASDAQ OMX announced in December that FPC will be traded
on the Mid Cap list as of January 2014. It is with great optimism that FPC now
enters 2014.

 Key figures                    Oct-Dec     Oct-Dec     Jan-Dec     Jan-Dec
                                2013        2012        2013        2012
-------------------------------------------------------------------------------
 Sales, SEK M                     34.1         1.9        95.4        10.3

 Gross profit, SEK M              14.9        -1.5        39.1        -5.7

 Gross margin %                     44         -77          41         -55

 Operating profit, SEK M         -15.1        -9.8       -34.0       -38.7

 EBITDA, SEK M                   -11.3        -7.0       -21.4       -27.4

 EBITDA, %                         -12        -368         -22        -266

 Profit after financial items,   -14.8        -9.7       -33.1       -38.1
  SEK M

 Earnings per share              -0.27       -0.22       -0.60       -0.89



                                                        Dec         Dec
                                                        31, 2013    31, 2012
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 Cash and cash equivalents, SEK                          211.7        60.6
 M

 Order backlog, SEK M                                     22.8        19.7


Future prospects
FPC remains of the opinion that sales in 2014 will exceed SEK 500 M and that the
full-year EBITDA margin will exceed 20%. Sales are expected to increase
sequentially during the year. Most of the income is expected to occur during the
second half of 2014 since volume deliveries of area sensors are scheduled for
the end of the second quarter. This entails that the previously issued forecasts
are repeated.

Revenue for the first quarter of 2014 is anticipated to total SEK 10-15 M. The
low level is due in part to FPC's customarily weak first quarter and in part to
the shift in the OEMs' demand from swipe sensors to area sensors, resulting in
relatively low volumes until volume deliveries of the area sensors have
commenced.

FPC believes that most of the 15 largest manufacturers of smartphones will
introduce models featuring fingerprint sensors in 2014. As a result of the
ongoing transition from swipe sensors to area sensors, the market volumes are
difficult to assess. According to FPC, the market for fingerprint sensors in
consumer electronics will exceed 350 million units in 2014 and be followed by
continued strong growth. Compared with earlier market forecasts, this entails a
lower sales volume, but at a significantly higher average sales price. FPC's aim
to capture 60% of the market for area sensors in smartphones stands firm.

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|For further information, contact: Johan Carlström, President and CEO,         |
|Fingerprint Cards AB (publ), +46 31-60 78 20, investrel@fingerprints.com      |
|Website: www.fingerprints.com/corporate/                                      |
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Fingerprint Cards AB (publ), Corp. Reg. No. 556154-2381, discloses this
information pursuant to the Swedish Securities Market Act (2007:528) and the
Swedish Financial Instruments Trading Act (1991:980). The information was issued
for publication on February 6, 2014, at 8:00 a.m. (CET)

Key information
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not constitute an offer, or an invitation, to acquire or subscribe for new
securities in Fingerprint Cards in any jurisdiction.

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