Next Biometrics has received a volume purchase order for its fingerprint sensors from Chinese distributor XM Holder, as well as the completion of a $2.2 million biometric hardware contract with an OEM customer in India.
Under the XM Holder agreement, Next will provide several of its fingerprint sensor models for use by new customers in India, China, Indonesia and other Asian countries, and is worth 2.4 million NOK (about 247,000 USD).
XM Holder already provides a Next customer, according to the announcement, and will now offer the company’s biometric sensors to other customers in payments and fintech.
The deal with the India-based OEM to supply FAP20 fingerprint sensors was initially unveiled in early 2022 and is now final as a milestone that was 90% conditional on the order has been passed. The OEM will now pursue the final steps towards certification for an Indian government program.
Revenue disappoints despite improving supply chain and margins
Next is also reporting NOK 11.7 million ($1.2 million) in revenue in its second fiscal quarter of 2022, with a gross margin of 36%.
Profits represent a modest gain from revenue in the same quarter a year ago, which was NOK 10.5 million ($1.08 million). The loss after tax also increased from NOK 7 million ($720,000) in the second quarter of 2021 to NOK 9.5 million ($980,000).
Next CEO Peter Heuman said in the report that the company booked 5 design contracts with new customers during the second quarter, but revenue for the quarter was unsatisfactory. Gross margin, though fluctuating, is trending higher and the company’s microchip supply chain is improving, but booked orders worth NOK 8 million ($820,000) have not shipped due to supply issues.
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