Precise grows despite weak mobile phone demand


  • Net sales totaled SEK18.8 (16.9) million.
  • EBITDA amounted to -1.8 (1.0) million SEK.
  • The operating result amounted to –7.3 (–3.0) million SEK.
  • The profit for the period amounted to –7.4 (–2.9) million SEK.
  • Earnings per share amounted to –0.2 SEK (–0.1).
  • Cash flow from operating activities amounted to SEK –7.0 (–2.4) million.


  • Net sales totaled SEK71.7 (55.9) million.
  • Total EBITDA SEK3.1 (0.2) million.
  • The operating result amounted to –12.3 (–11.4) million SEK.
  • The profit for the period amounted to –12.9 (–11.0) million SEK.
  • Earnings per share amounted to –0.3 SEK (–0.3).
  • Cash flow from operating activities totaled SEK3.7 (–4.6) million.


  • Precise decided on a directed issue of 3,959,639 shares for Egis technologyand a capital increase within the limit of 6,599,399 shares and an over-allotment option of a maximum of 2,339,787 shares Egis technology.
  • An extraordinary general meeting held on September 5, 2022decided to approve the capital increase, authorize the Board of Directors to issue ordinary shares and authorize the Board of Directors to issue ordinary shares and/or convertible.
  • A total of 2,871,564 ordinary shares were subscribed in connection with the capital increase, corresponding to approximately 43.5% of the capital increase.
  • Precise announced management changes to better reflect the company’s growth strategy in the Digital Identity and Algo business areas. Therefore, Fredrik Sjoholm was appointed EVP and CCO of Algo, and Patrick Hoijer assumed the role of CCO Digital Identity in addition to the role of CEO of Precise.
  • In accordance with the incentive program adopted by the 2022 AGM, the CEO of the company subscribed to 100,000 options, corresponding to 100% of the total stock options.


  • As part of the capital increase directed at Egis Technology and the completion of the capital increase, the number of shares and votes in Precise increased by 6,831,203. All members of the Board of Directors and the management group of the company participated in the increase of capital in proportion to their participation.
  • The issues were registered with the Swedish Companies Registration Office on October 4and Accurate received 44 million Swedish crowns before issue costs on October 6.

Amounts in thousands of SEK, unless otherwise indicated


2022 2021 2022 2021 2021 Rolling
Amounts in thousands of SEK, unless otherwise indicated Q3 Q3 Q1 – Q3 Q1 – Q3 Full year 12 months
Net sales 18,816 16,905 71,742 55,885 83,319 99 176
Net sales growth, % 11.3% -27.1% 28.4% -20.0% -9.8% 26.5%
EBITDA -1,829 998 3,132 206 1,872 4,798
Gross margin, % 63.2% 76.4% 73.6% 75.7% 76.3% 74.6%
Operating profit/loss -7,341 -2,972 -12,252 -11,380 -14,073 -14,945
Operating margin, % -39.0% -17.6% -17.1% -20.4% -16.9% -15.1%
Cash flow from operating activities -7,028 -2,361 3,656 -4,649 -1,477 3,530
Cash and cash equivalents 41,278 55,658 41,278 55,658 64 102 41,278

See the financial glossary for definitions.


As part of today’s interim report, Precise invites investors and the media to an informational conference call.

The conference call begins at 10:00 a.m. (CET) on November 11, 2022.

Link to webcast:

To participate, click on the link above to listen to and follow the presentation online.

Please send questions to [email protected]

The conference call will be conducted in English.

Participation on behalf of Precise:
Patrick HoijerCEO
Annika FreijCFO


It’s been an eventful quarter for Precise. First, we are continuing to grow despite declining demand in the mobile industry. This shows the strength of our new business model, where recurring revenue in the Digital Identity business area, primarily through the acquisition of EastCoast, combined with the stable license fee trend in the Algo business area, offset the decline in royalty income. In total, turnover increased by 11.3% to SEK18.8 (16.9) million, with an EBITDA of -1.8 million Swedish crowns (1.0). During the quarter, we also completed a new directed equity offering for Egis Technology, which is a major client of Precise, and an issue of preferred shares to our existing shareholders. These share issues will bring a total of approximately 41 million Swedish crowns to Precise, which, combined with the extended collaboration with Egis, will support our ability to execute our strategy.

The Algo business center
The drop in demand for mobile phones in 2022 means that mobile phone manufacturers (OEMs) have large inventories of components and phones. They have therefore focused on reducing their inventory by reducing purchases from module houses, ie the subcontractors who supply the components to the OEMs. Precise’s customers supply fingerprint sensors to mod houses, and as a result they experienced significantly lower volumes during the third quarter, which affected Precise’s royalty revenue. If we look at Algo’s revenues as a whole, they total SEK 13 (16.6) million, mainly due to royalty income down 72% compared to the corresponding period last year, while license fees increased slightly. As mobile phone manufacturers begin to reduce inventory, we expect a gradual recovery and therefore an increase in royalty income. It’s hard to predict exactly when this will happen, but our best assessment at this time is that we will see a gradual normalization of inventory levels in the first half of 2023.

At Algo, we have spent many years acquiring world-class expertise in the development of fingerprint recognition algorithms, a technology based on cutting-edge expertise in image analysis. Our solutions are mainly used in mid- to high-end segment phones, due to our success in delivering more complex software for sensors under the mobile phone screen, mainly sensors based on optical and ultrasonic technology . In recently completed tests of our algorithms, we can see that they maintain a world-leading level, especially in terms of biometric performance and latency. This is proof for our company, which is also confirmed when I meet customers in markets such as the UNITED STATES and Asia. During the quarter, we saw our solutions launched in new mobile phones from Long live and in smart door locks from Aqara and TP link.

Our growth strategy for Algo is clear. We continue to support our partners to win business in the mobile segment and support new sensor suppliers. At the same time, we are exploring new vertical markets and evaluating new types of sensors that can use our algorithms.

The Digital Identity business area
Digital identity, which focuses on access and visitor management, had a strong third quarter. Revenue increased to SEK5.8 (0.3) million, thanks to our visitor management solutions within our latest acquisition, EastCoast. The company is seeing growing demand for our visitor management systems, where the value of the sales pipeline in the first nine months of 2022 increased by 50% compared to the corresponding period last year. We currently have two visitor management solutions, an on-premises solution and a cloud-based solution that generates recurring revenue. In 2022, we led several initiatives to increase sales of the scalable cloud-based solution. This has been successful as the value of this solution’s sales pipeline for the first nine months of 2023 has almost doubled compared to the same period last year.

During the quarter, we won new YOUNiQ contracts with Paras Bygg and additional projects with Algeco. We have also won EastCoast contracts with customers like ATEA and Kappa Smurf.

With YOUNiQ, we have developed in recent years a market-leading solution for biometric physical access by facial recognition. Our product development now focuses primarily on building additional scalability and simplicity into the solution. The general objective of YOUNiQ is to create solid sales channels by guaranteeing the right partnerships, both commercially and technically. A milestone in this journey is that YOUNiQ in September has been certified by our US partner Genetec to be included in their security platform Genetec Security Center.

I am therefore particularly happy that we have won a contract in the UNITED STATES with St. Lawrence Hospital In the state of New York. The aim is to provide hospitals and pharmacists with a secure access solution based on facial recognition. The American market is considered to have good potential given its size and maturity in terms of knowledge and use of biometric solutions compared to Europe. Going forward, we will focus our sales efforts more on the US market to support the growth of the business line.

Increased business orientation and cost control
We operate in an increasingly uncertain macroeconomic environment. Despite this, Precise has so far demonstrated resilient revenue, driven by digital identity developments and a stable license fee trend across both of our business areas. But in order to best respond to the uncertainty of global demand for mobile telephony, we have strengthened our cost control, and have already taken the initiative during the quarter to reduce our operating costs. This was done in particular by reducing the number of consultants and optimizing our R&D initiatives. This is in line with our strategy and increased business focus.

During the quarter, Precise was reorganized into two separate lines of business, Digital Identity and Algo, to focus more on the growth opportunities of our respective lines of business. It has created a clearer direction and a forward-thinking approach that gives me confidence that we will be able to continue to execute on our strategy.

I had the opportunity over the fall to meet with our customers around the world and I’m delighted to see how much they trust Precise’s technology. The underlying global trend of increased use of biometrics benefits us, and I look forward to continuing to market our position as a leading global provider of identification software.

Patrick HoijerCEO