Annual report 2006 Fingerprint Cards AB (publ)

Transcription

Annual report 2006
Fingerprint Cards AB (publ)
Contents
2006 – A Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Statement by the President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Commercial concept . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Market and Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Technology and Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Patent Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Products and Applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Organisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Share data and Ownership structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Administration report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Income statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Cash flow statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Changes in equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Notes and supplementary disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Auditor’s report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Five-year summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Board, Management, The Auditor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Annual general meeting
The Annual General Meeting will be held on Thursday May 31, 2007, at 17.30 hrs, in the Västerhavet
room at the Radisson SAS Scandinavia Hotel, Södra Hamngatan 59–65 in Gothenburg. Those shareholders registered in the VPC-maintained shareholders’ register as at Thursday May 24, 2007, are entitled
to attend. Notification of attendance should reach the company at this address: Fingerprint Cards AB,
P.O. Box 2412, SE-403 16 Gothenburg, or by fax +46 31 13 73 85, or by e-mail: investrel@fingerprints.com
no later than Thursday May 24 at 16.00 hrs.
Dividend
The board proposes a dividend of zero (0) SEK to the AGM.
Date(s) of financial information
Quarterly report for the period: January – March 2007, May 10, 2007
Quarterly report for the period: January – June 2007, August 16, 2007
Quarterly report for the period: January – September 2007, October 26, 2007
Press release on annual accounts for 2007, February 2008
2007 Annual report, April 2008
2006 – A Summary
At the beginning of the year the Sales & Marketing organisation was strengthened with the appointment of a sales manager responsible for
North America and EMEA.
In February the Company received an order valued at MSEK 1 from its distributor in South Korea, Camos Tech Co. Ltd. The technology will
be used in access systems for hotels, bank premises and offices, and the order was for embedded fingerprint systems.
A further order from Hardware & Software Technologies Co. Ltd in Taiwan was received in March. This concerned an IT security system for
Chinese banks being developed by a Chinese customer, and an automobile application with another Chinese partner. The order value was
MSEK 7.3 and delivery was made during 2006.
In April Camos Tech Co Ltd placed a second order, this time valued at MSEK 3.1 for complete identification systems. These were directed
towards the physical access control markets in a product developed by Camos Tech’s parent company. The main areas of use are the leisure,
banking, and office property sectors.
In May the Annual General Meeting of shareholders authorised the Board to issue three million new B shares with deviation from shareholders’ pre-emption rights.
In August the company received its largest systems order to date – valued at MSEK 9 and with delivery before the year-end – from Secure
Design KK, its distributor in Japan.
As a result of the Company’s expanding sales strategy a new US distributor was appointed in August. Component Distributors Inc (CDI) signed
a distributor licence agreement for the US market. CDI is based in Florida, and has more than ten offices located throughout the USA.
In October the board decided to go ahead with a new stock issue amounting to MSEK 70.1 before issue expenses. The subscription price was
set at SEK 25 and the prescription period to 15 November – 1 December.
The issue was fully subscribed to and the Company’s major shareholder, Technoimagia Sweden AB had subscribed for its full share of the
issue. On the closing payment day Technoimagia had not made payment. The board decided to prolong the time for payment with the final
payment due by 20 December.
Circumstances related to Technoimagia made the board apply for a temporary attachment upon Technoimagia’s assets, and this was obtained
at the municipal court in Stockholm on 12 December.
On the 20 December Technoimagia completed payment for its new issue shares following heavy sales of existing shares in Fingerprint Cards.
After the full new issue had been registered Technoimagia´s share was down to 28% of the total votes and 12% of the capital. The attachment
upon Technoimagia´s assets was lifted.
At the close of the year the Company had to conclude that Secure Design had not completed on the order worth MSEK 9 with respect to
delivery before the year-end. Only a part delivery, corresponding to approximately 8 % of the order value was made in December 2006. The
parties are discussing a solution to the problem.
Operations for the year showed a loss of MSEK –19.7 (-17.5). Operating income for the financial year totalled MSEK 11.1 (2.7) for the group.
Net financial items were MSEK 0.3 (0.5). Internal and external technology developments amounted to MSEK 9.5 (6.2)
Available liquid funds at the year-end amounted to MSEK 71.1 (40.0)
Events after the end of the financial year
In January Hardware & Software Technologies Co. Ltd (HST) placed a sensor order valued at MSEK 22. The sensors will be delivered from
the first quarter of 2007 to the first quarter of 2008, and will follow earlier deliveries from HST to its banking applications customers in China.
In late February HST placed a further volume order for sensors worth MSEK 21. Deliveries will continue until the first quarter of 2008 and
the sensors will be used in IT security products.
Early in April a further part delivery was made to Secure Design KK corresponding to approximately 16% of the total order value of MSEK 9.
4 2006 – A Summary
Statement by the President
A few major factors have influenced the Company’s direction this
year: in particular a successful new rights issue and a cluster of our
biggest orders to date. While these have been clearly visible it is also
important to know that behind the scenes we have been working
efficiently on a series of carefully defined and timed projects in the
preparation for important changes in 2007. The year therefore saw the
affirmation of some key opportunities with respect to our sales and
marketing direction, and it has put us in a strategically useful position.
Capitalising
We began the year with a new, major owner, which brought with it
new capital at the end of 2005; however, by the end of this year a
further preferential rights issue to our stockholders resulted in
significantly greater capital inflow of MSEK 70.1 before costs were
accounted for, and by the end of the share issue our major owner
had greatly reduced its stake. All this puts us in a sound financial
position for the coming years, giving us a degree of freedom and
most importantly it allows us to progress with the plans made and
prepared for. In connection with this new issue the Board has decided
that this two year period should see a considerable increase in sales
and production with the aim of achieving a positive operating result
on an annual basis.
Market entries
Of cumulative importance this year has been our strengthening
access to Asian markets, where our technology performs well and
where there are very real and substantial opportunities for biometrics in the commercial sector. Our Sales and Marketing team has
worked hard to achieve this, working through what have proved to be
effective distributor channels. This marks an important turning
point because the opportunities being serviced by the development
partners using our technology are commercial ones in the fields of
IT, physical access, and banking security. Government sponsored
projects have also continued to grow impressively in the USA, where
we also secured a new distributor during the year.
Improving our delivery position
We have developed an innovative technology including a sensor giving
superior image quality. However, this is only one step in the process
of reaching commercial success. During the year substantial resources were devoted to building up production capacity at sub-contractor
level concerning packaging of the sensor component. These efforts
were successful and by the year-end the production capacity was
significantly increased and with sustained quality level. Our delivery
position is now satisfactory and will be further improved throughout
the coming period.
Better margins
In parallel with the efforts to increasing production volume important development projects were in progress aimed at improving our
sales margins. We are developing a new packaging solution for the
sensor; one that can be produced in very high volumes and to a considerably lower cost, which together with the new processor ASIC
we design will give us significantly improved sales margins. These
production cost reducing measures will have progressive effects
during the coming year noticeable in our accounts above all from
the second half of the year.
We have an exciting time ahead of us, where we can look forward
to considerably increased sales and production volumes and to
much improved sales margins. Our aim is to build up a strong foundation for future profitability.
Gothenburg, April 2007
Lennart Carlson
President
Fingerprint Cards AB
Statement by the President 5
Commercial Concept
Fingerprint Cards is a technology company with a strong intellectual
property portfolio. Its customers are mainly developers of end-user
products or solutions in which the Company’s technology can be
integrated. These are reached directly or through the Company’s
global distributor/reseller network.
Central concepts
Technical development is essential to the Company’s position, where
it is particularly strong in the arena of small and cost effective
embedded systems. The silicon technology and the biometric methodologies at the core of the Company’s offering are not only innovative, but well-protected, offering a trustworthy foundation for progressive business development. The central business concept is to
deliver both components and complete systems of FPC original fingerprint technology from within a variable framework of licence agreements. While this approach extends ultimately to well-developed
customer projects where only royalties are gained and the licensing
customer manages all hardware production issues, the Company
has found increasing degrees of success in the supply of sensors
and embedded systems components, and as a result has become
well-adapted to current as well as future market needs. Just as the
market for biometrics continues its growth in depth and diversity,
then so the Company will benefit from the reach and flexibility of its
business model.
Image and system level views
Historically there have been two views on approaching biometric
technologies: the image processing level and the wider system’s
deployment. Fingerprint Cards has a development approach to encompass both levels. At the core technology level, dealing with image
capture and processing, it has a leading imaging technology in both
area and swipe sensor form factors, supported by an intellectual
property portfolio. At the systems level it offers the algorithm methodologies and software for both area and swipe sensors, extending
this to identification matching for products where the biometric systems use no identification cards or tokens.
Designed from the outset as a compact, low-power, efficient
approach to fingerprint capture and matching, this portfolio positions
Fingerprint Cards as a leader in the development of complete biometric systems. The customer opportunity to use all or some of
these components is therefore led, first and foremost, by the value
that the Company’s development customers expect from their final
biometric products. Development partners find their value by looking
at the applications’ requirements set by the end-user of the technology; whether this is for logical, physical, or a particular combination
of identity authentication.
Using its ownership of an approach and a platform to biometric
matching that are compatible with the widest range of product deployments Fingerprint Cards can benefit from a flexible business model
centred on licensing but extending to the provision of components
with competitive profit margins.
Continuous value improvement
In addressing the market the Company has seen the need to stay
responsive to the changing expectation for the final shape and form
of authentication products, in particular to their size and cost. This
has previously been evidenced by the commitment made to a low cost
swipe sensor and its software processes which have now received
full patent protection. More recently, this year, the Company has
taken great strides in developing the next generation of its ASIC processor. This offers an easily interfaced processing platform, with
more functionality, at a dramatically lower cost than previous models.
The design of this processor will enable customers to build new
functionality, security, and privacy into their products at a highly
competitive level that will be seen at all stages in the value chain.
The future of the market
The current reality of the market for biometrics is that it has yet to
reach the volume that will make a purely IP licensing business model
run by itself, although the availability of proven low cost technology
designs is a major, positive step in that direction. Those capable of
supplying strong fingerprint IP, from the fingerprint imaging technology through to the image processing algorithms, and the silicon
platforms for these, need in the interim to fight for a strong position
in the supply of components and systems sub-assemblies. While
the Company seeks to position itself for the streamlined licensing
activities inherent to high volume product opportunities, it has seen
a successful year in the consolidation of its distributor based sales
and marketing model, and this offers the most effective base for
sales activities in the coming period.
Commercial Concept 7
Market and Sales
Business value is the guide
The overall trend of the year was already evident by its mid-point,
when it was clear that biometric technologies had become well established and familiar worldwide. The year represented a consolidation of the momentum gained by the industry over the previous five
years, and it testified to the high level of acceptance reached in all
walks of life, whether large government projects featuring identity
card or passports, or more local uses of biometrics such as physical
access control.
Throughout it was clear that biometrics were being deployed for
the value they can bring, and not for fashionable or sensational reasons. Price and functionality continue to be the two determining factors in success. Whether they are used by governments, businesses,
or individuals, their use was indicative of better preparation and understanding of the technology, and this was balanced by a more rigorous
technology selection process that has become global in its outlook.
Three themes
There were three prominent themes to the growing biometrics
market this year. First is the importance of sales partners such as
regional distributors and channel partners such as computer manufacturers. The second is the emergence of a select number of technologies that are sought after globally for their performance, effectiveness, and value for money. The third is the number of systems
integrators who are gaining real experience in the deployment of
biometrics to large systems. The first two of these have been particularly relevant to Fingerprint Cards.
Geographical presence
Distributors play a crucial role in identifying sales opportunities, and
in supporting these throughout the pre-sales and after-sales processes. Through these the Company reaches a large number of end
customers without any extensive expansion of its own sales organisation. Growing markets such as China show the importance of having
8 Market and Sales
a local presence, even when the technology selection process is firmly
rooted in a global view of value for money. During the last five years
a network of distributors has been built up and the Company is now
well represented in market regions such as South Korea, Taiwan,
China, Singapore/Malaysia and USA.
Finding the global opportunity now relies upon a distributor who
understands the local market and has a strong understanding of the
biometric technology. There are common aspects to the use of biometrics, such as the reduction of identity fraud, but regional distributors
are best positioned to respond to different market drivers. For example, in China banking legislation holds executives responsible for
fraud, and this prompts the adoption of more rigorous authentication
solutions. In the United States both health insurance information
and data accountability legislation have been contributing to the
demand for integrated biometric solutions. On the other hand, for
the ePassport inclusion of biometrics the drivers have been both
global and European compliance programmes.
Product development with biometrics
The end use cost of biometrics continued to drop throughout the
period, making this more attractive to product developers in all market segments. There are very few of the mainstream providers of
physical access control and time and attendance equipment who
have not taken on biometrics as a part of their product lines. During
the year the markets for these products were shifting in favour of
lower cost equipment and towards added functionality such as cardfree operation to realise end-user savings.
The lower cost of biometrics has also widened the adoption of
biometrics to the IT sector. The year saw the adoption of fingerprint
sensors as standard equipment to new notebook computers reaching as high as ten percent of all machines sold worldwide. The
advantages of these have been strengthened by improved software
packages for managing identity at the client level, and by parallel
hardware initiatives such as the Trusted Computing Group’s 1 specifi-
cation for more secure computer hardware environments. Within this
segment the opportunities have been taken by silicon sensors, with
optical sensors being at a clear disadvantage in size as well as cost.
Revisiting the financial sector
Opportunities in the financial sector have long been suggested as
having the greatest potential spread for biometric deployment, but
North American and European banks have been slow to adopt these.
Instead, during the year, there was a move by banks in China and
South America to bring greater security accountability to their rapid
growth by using biometrics. These applications tend towards the
security and control of bank employees in the first instance, but
bank customer usage of the technology has also been increasing.
The Company’s experience of these opportunities is that they are
being delivered by way of integrated computer or network access
control solutions, but we can expect an increase in solutions combining biometrics with smart cards and electronic signatures.
Sales and marketing
The Company did not engage in any marketing activities during 2006
and this led to fewer new contacts. The year’s activity was centred
on a stable approach to meeting existing commitments and supporting distributors and reseller partners. One important achievement
however was the appointment of a new distributor for USA, headquartered in Florida and covering the North-American continent
through ten branch offices. In 2007 the Company will engage in a
new marketing programme, working in partnership with its distributors, and profiling itself at a number of regional events.
The Company has developed two sets of technology for reading,
storing and matching of finger patterns. One set is based on a swipe
sensor and the other on a larger area sensor for the reading of
finger patterns. The swipe sensor technology is not yet generating
any continuous sales. However, the technology is being delivered to
interesting projects which aim to integrate the complete fingerprint
system in cards intended for use in large payment systems. The
area sensor technology showed, on the other hand, very positive
sales growth. The demand for this technology exceeded the Company’s
ability to deliver throughout the year due to problems with raising
production volume at the packaging stage of the sensor component;
however capacity in that respect had improved considerably by
the year-end.
The regions accounting for the major part of the revenues for the
year were South Korea, Taiwan, Japan and China. The applications in
which the technology were used were, access control systems for
banks and offices; safe boxes for offices and hotels; a biometric automobile security product; and most of all, IT security products for
logon to computer networks. It is the Company’s opinion that the IT
security product segment has the greatest potential for future sales,
with this being particularly valid for the Chinese market.
Company sales during the year
The total revenue for the year amounted to MSEK 11. The sales margin was clearly insufficient and considerable measures have been
taken to lower production costs progressively and thereby raise the
sales margin to an acceptable level. The aim is to achieve a sales
margin of 30 to 35 per cent for the foreseeable product mix. In addition to the year’s revenue, the cumulative order value, discounting
an order from Japanese Secure Design KK 2 and worth MSEK 9,
amounted to MSEK 4 at the end of December.
Shortly after the year end the Company received two orders from
its distributor in China, totalling MSEK 43.
1
http:// www. Trustedcomputinggroup.org
2
The Company’s non-exclusive distributor in Japan, Secure Design KK, placed an order in
August worth MSEK 9 for technology delivery by the end of 2006. Secure Design KK never
completed on the order. The parties are discussing a solution to the problem. In early April
a part delivery was made to Secure Design KK corresponding to approximately 16 % of the
total order value.
Market Sales 9
Technology
Supporting the business model
The FPC technology development programme is there to support
the business model and the Company’s customers. A period of original investment, strong innovation and patent protection has been
followed during the last year with a series of discrete projects, all
with a view to better yields in component production, and better process integration through the technical steps of component supply.
It has been possible to pursue these strategic projects in the anticipation of further investment; and with the influx of new capital at
the end of the year, the Company will now move to act on the results
of its projects.
A popular technical fit
The popularity of FPC sensor technology amongst developers –
among those in the Asian marketplace in particular – is largely attributable to the quality of the image generated. This is a feature of
FPC’s reflective capacitive silicon design – producing a sensor that
is sensitive and robust. This quality image provides a good starting
point for developers with their own algorithm approach, looking to
add a level of their own value to the end product, and with a strong
local connection to the market. The standalone functionality of the
sensor is therefore acting as a key to market entry in these areas,
where many other sensor and combined sensor/algorithm packages
are less successful.
Improving on production
The approach taken by the technical team is well-established. The
Technical Director heads a team of specialists in Gothenburg, each
of whom is responsible for specific development areas. Added to
this are project teams comprised of external specialists, and with
the specific role of taking the Company to its next strategic milestone.
Throughout the year the technical team was looking in general at new
technical production solutions and new suppliers.
Most of the work done in 2006 was designed with the final aim of
realising strong customer order benefits in 2007, and instrumentally,
to satisfy planning for investment on completion of the new rights
issue at the close of 2006. Significant production improvements were
already achieved within 2006: monthly sensor production had increased five-fold by the close of the year compared with the opening
months. The volume increase is a result of investments made in production equipment, and from an intensified cooperation between the
Company and its suppliers. Progressive benefits are expected from
10 Technology
this strategy as the Company moves to satisfy its existing orders in 2007.
Along with the further development of the present packaging solution, work was in progress on developing a completely new packaging for the sensor. The market demands greater volumes at a
lower cost, and it is critical for the Company to be able to meet these
demands. New technical solutions may require investments in specific production equipment in order to achieve a cost effective production process. Such investments may be made either by the Company or by its contracted sub-contractors.
Another key development project has been the design and testing
of a new coating together with different ways of applying this. This
will be a better production fit and will bring some product improvements, including even greater scratch resistance.
Value at the embedded processing level
Technical work has contributed greatly to the development of the
processing platform architectures as a valuable area of opportunity
for FPC technology. This extended during the year to design work
on a new ASIC, which reached its final stages by the end of 2006.
This will be faster and use much less power than the Company’s
current ASIC processor. The new processor is designed basically for
the area sensor family, including the use of this for identification
matching (1:N) solutions. This identification matching allows the
end-use application to dispense with cards or tokens for storage or
identification of the stored biometric record, and the new ASIC will
handle five hundred users, more than twice the number of users in
this operating mode than the present processor.
Significant leap
The new ASIC represents a significant leap forwards in the delivery
of value for money to FPC customers. With a 75 percent reduction in
the silicon area using a more advanced process the chip price will
be reduced by 80 percent and the design of the chip will encapsulate all of the FPC algorithm and matching software revisions made
since the last processor design. While the Company expects its
swipe sensor technology to be delivered to large-scale customers in
a different way than the area sensor, its new processor ASIC is already future compatible with the swipe sensor, providing in effect a
dual algorithm platform. The FPC principle of high-performance at
low cost will therefore be carried forward on different technical levels. Deliveries of the new processor to the market are planned for
the third calendar quarter 2007.
Intellectual property strategy and approach
Intellectual property is central to the Company’s strategy so a close
eye is kept on the market for possible infringement of the patents
listed; this includes control of any patent rights arising through cooperative work. FPC core technology is now very well supported by
patents granted, and a robust strategy is proposed for the protection
of future property in value-added technology development. Project
design work for customers’ technical solutions will be embedded in
different ‘IP-blocks’ to which the sensor or algorithm is integrated,
making it impossible for customers to copy and further develop designs without the Company’s involvement.
Sensor patent, architecture
The sensor architecture covers the method of real time programming
of sensor matrix function. This solution for the sensor architecture
allows each pixel element to be set into different modes of operation
while obtaining the fingerprint image. By alternating the operation
mode of the pixel elements the image measurement technique and
image readout procedure can be optimised to obtain best image
quality for the identification and verification of the fingerprint. The
PCT, US and European patent applications for sensor architecture
have been granted by 2004.
Sensor patent, pixel element
The main claims of this application focus on the physical design of
the pixel elements in the sensor ASIC and the readout conversion.
The design of the sensor pixel element and associated conversion
principle results in an extremely sensitive sensor amplifier with low
internal noise generation. The advantages are that the dynamic profile of a fingerprint can be measured with high sensitivity, accurate
contrast resolution, and at a high readout speed. It also becomes
possible to coat the sensor with a thick, protective coating, and this
is a great advantage in the sensor package integration, when the
environmental and durability requirements are demanding. These
fundamental design features make possible a robust and user-friendly
biometric solution. The Company has received a positive result in the
international examination report on its PCT application.
Algorithm patent
The software used in registration and verification contains mathematical descriptions – known as algorithms – by which millions of operations can be carried out in a split second. In order for this to be done
in the most secure and effective manner the algorithm code has also
been written for the Company’s own microprocessors. The algorithms
are based on details in the entire fingerprint pattern using a method
adapted from the science of image processing, but one original to
this application. A patent application for these algorithms was filed
at the Swedish Patent and Registration Office and was granted in
November 2000. An international PCT application has also been filed.
In 2005 the European Patent Office granted the algorithm patent.
An application filed in the USA during 2004 was also granted in 2005.
Swipe sensor methodology patent
The granted European patent for the swipe sensor methodology
describes a system based on a sensor that reads partial images from
a moving fingerprint, and where the sensor surface is considerably
smaller than the fingerprint itself. The information extracted from
each partial fingerprint image is read for later verification then erased
from memory. This method makes it possible to store the individual’s
biometric identity without building up the complete image of the
fingerprint. Following a positive result in the international examination report from the PCT the Company has filed patent applications
in Japan and the USA.
Packaging patent
The approved packaging patent describes a way to use the same
coating for protection of the sensor surface and the bond wires used
for the electrical interconnection with respect to ESD, environmental
conditions and mechanical abrasion.
Sensor patent, architecture: Sweden: No. 511543, valid until Feb 2018. PCT: Application No. PCT/SE99/00195. USA: No. 6,778,686, valid until Feb 2019.
EP: No. 1 055 188, valid until Feb 2019. Registered in Germany and France. Japan: Application No. 2000-531806.
Sensor patent, pixel element: PCT: Application No. PCT/SE2004/000985. EP: Application No. 04749024.8. USA: Application No. to follow.
Japan: Application No. to follow.
Algorithm patent: EP: No 1 208 528 valid until August 2020. Registered in Germany and France. Sweden: No. 514091, valid until August 2019
PCT: Application No. PCT/SE00/01623. USA: Application No. 10/069240 (Granted: Patent No. to follow) No. 7 003 142, valid until March 2022.
Swipe sensor methodology patent: EP: No. 1 330 185, valid until March 2022. Registered in Sweden, UK, Italy, Germany, and France.
PCT: Application No. PCT/SE02/00505. USA: Application No. 10/398 172. Japan: Application No. 2004-524625.
Packaging patent: Sweden: No. 519304, valid until May 2021.
Intellectual property strategy and approach 11
Outlook
Business progress in 2007 is forecast to be mostly independent of the
wider market’s growth. The current status of orders and distributor
arrangements puts the Company on a good footing with reference to
its business growth plans, and allows the operational focus to conclude
work on the matters of production and volume delivery capability.
Expectations
Most expectations are linked with the Company’s area sensor product, and with the next iteration of its ASIC processor, however, there
are a number of market developments taking shape that might continue to move favourably in opening opportunities for the Company’s
swipe sensor. The question of unit price continues to remain at the
forefront for volume markets and there is still the possibility in the
coming period that the Company will be able to realise its more
purely defined licensing and royalty strategy in respect of this sensor.
The enhancement of this is achieved both by the overall production
and packaging reforms currently undertaken, but also by the multifunctionality of the new ASIC which will provide an operational platform for the swipe sensor algorithm methodology as well as the
area sensor’s verification and identification modes.
Importance of IP protection
The importance of IP protection in the silicon sensor and algorithm
domain is likely to become more relevant to business viability. Some
12 Outlook
recent developments, whose outcomes are not yet determined, are
legal challenges between competitor swipe sensor products. There
are currently three competitor products in the swipe sensor market
where there has been a reasonable developer uptake with products
in circulation. However, two of these have been challenged on the
grounds of their Intellectual property rights either in the core sensor
design or the algorithm methodologies deployed, and the outcome
of these challenges could have strong negative impacts on their
commercial viability. Fingerprint Cards on the other hand has a
well-founded patent protection in respect of its sensor design and
its algorithm methodology; it thus offers a stable route to the continuing development of a low-cost solution.
Diversity
A healthy diversity continues to be a part of the Company’s sales
activities in the coming period. Orders and sales for sensors and
embedded systems components are strong, but there is also a good
uptake in interest for FPC sub-systems modules, which became
available in 2005. These cater for early development interest in the
technology, and for developers of more specialised high-value products. While the Company does not anticipate high volume sales of
these, it maintains its competitive position in the market and benefits
from a larger share of the added value through its provision of complete modules, along with technical support. The modules also provide
a lead in continuity for future sales as well as diverse validation of the
Company’s core technology and its real-world performance.
Sales and marketing business base
The search for new distributors in new geographical markets such
as India, South America, and parts of Europe are also central to the
broadening of the Company’s business base in the next few years, and
the development of these will form an important part of the coming
year’s activities. Developments in the Chinese marketplace are also
likely, based on the generally positive market conditions there and
the momentum apparent from the last eighteen months’ activity.
The outlook for a return on sales and marketing activities promises to be a positive one, moreover given that it was not possible
during 2006 to commit to any extensive investment with short or
longer-term view. The expansion of the distributor network, as
described above, along with a tighter collaborative plan for exhibiting
alongside distributors where their local knowledge will lead the strategy, is a proven approach that already brings benefits for the Company.
plementing a fingerprint system; and alongside these customer benefits, it will also bring better sales margins to the Company. Opportunities for the swipe sensor technology are also aided by this new ASIC
processor which will provide an operational platform for both area
and swipe sensor algorithm methodologies.
Cost of ownership
The market introduction of the new ASIC processor will serve a number of purposes. It will provide for a state-of-the-art embedded fingerprint solution; it will continue to drive down quite significantly the
cost of ownership of a biometric system; it will reduce the cost of im-
Outlook 13
Products and applications
Fingerprint Cards supplies components and licences to its geographical distributor and reseller partners who in turn sell these to product developers who understand the many different applications
calling for biometrics. In some cases the Company also enters directly into project work with larger prospective customers where a
greater understanding of the technology is required, and where the
outcome is likely to be a purely licensing based arrangement. Such
is the case with swipe sensor projects.
In most applications where biometrics are deployed then there is
both competition from other technologies and the common sense
need for biometrics to bring a business justification. How this works
in each case has a good deal to do with the end product and its marketing by the end-developer of the technology. The fingerprint might
be deployed to reduce identity fraud or password management problems; it might be in the lowest cost device to meet a simple security requirement; or it might form an essential part of a revolutionary
product idea.
Established applications for biometrics include physical access control, where biometrics provides a higher level of identity security and
assurance against collaborative fraud, such as key sharing. During
the year access control products featuring FPC technology have
been introduced in Singapore and in Japan.
Geography plays an important part in developing the opportunities
for technologies like the Company’s. In some regions there is a
greater call for certain types of solution. In South Africa the demand
for Time & Attendance solutions is strong as a labour force management tool, and products with FPC technology were introduced in
2006. Elsewhere Time & Attendance is being used as a trustworthy
automated substitute for more expensive manual processes; the
14 Products and applications
leisure industry has found this an attractive proposition, and products using FPC were introduced this in Sweden for this purpose.
Some applications are responding to urgent needs, often driven by
new regulations and industry practices. Changes in the financial
industry are happening all over the world and banks in places like
China are seeing the advantages of responding to this by implementing biometrics in a widespread way. In most of these cases the
solution is an application developed around the use of biometrics
as an IT security tool, although some also take advantage of biometrics for physical access. The Company’s end developers in China
have pursued a number of successful product opportunities here
during the year. In the Asian market, where product fabrication is a
major commercial activity, the Company also has end developers
using its embedded technology in micro-products like USB security
and data tokens.
Reliable embedded solutions take the non-networked and independent use of biometrics into many new areas. In the USA and France
developers brought FPC technology into use for hand-held POS
(Point of Sale) terminals, where the biometric substitutes for a PIN
code. In the field of personal asset protection, battery powered safety boxes were introduced in the USA and Italy. Professional environments where access to sophisticated equipment or materials,
such as in medical applications, is another effective use for standalone biometric solutions, and FPC technology was deployed in this
area by an Italian developer.
Applications and solutions development will continue to thrive according to geographical and business needs, and where developers
in diverse markets can harness the great potential of the Company’s
technology.
Organisation
The new major owner brought in by the Company late in 2005 has
had very little impact on the organisational structure, but the recent
share issue completed in the fourth quarter of 2006 did enable the
technical department to progress with its management plan by appointing two new engineers with specific responsibilities. At the beginning of the year the Company had also appointed a new regional sales
manager but, other than these additions, the year was otherwise
very stable with no new requirement for re-organisational change.
Ultimate responsibility for the daily operation lies with the President, supported by an in-house management team that works to an
established reporting and meetings structure. The main role of this
team is to exchange information and make timely decisions on important issues related to technology development and the conduct
of business operations. The Company administration works closely
with the President. The Chief Financial Officer holds responsibility
for administration, personnel, treasury, financial reporting to the
board and reporting to the authorities. The President manages all
investor relations matters.
The VP Sales & Marketing looks after direct marketing and sales
activities, and leads a team giving technical support and assisting
customers in projects integrating the technology to particular end
products. The front-line of this team was strengthened at the beginning of the year when a new Sales Manager was appointed to concentrate on the development of EMEA and North American markets,
which resulted in the appointment of a new US distributor. Marketing
activities during the year favoured direct customer approaches rather
than generalised activities such as exhibition attendance, although
new activities planned for 2007 will include such attendance in collaboration with the Company’s regional distributors. The sales organisation complemented and supported the Company’s distributor
and reseller network, which is capable of handling regional customers
more effectively. Collaboration with distributors will continue to
strengthen in the coming year.
The highly qualified technology team in Gothenburg, with many
years expertise in biometric systems, is led by a VP Technology &
Engineering who is also responsible for the management of external
expertise in a number of countries. Competent personnel are retained for development of the algorithm, ASICs, and the sensors, as
well as for managing production, quality control, and delivery work.
For larger projects involving the further development of FPC IP then
project teams are assembled from FPC and customer personnel.
Most technical development work in 2006 was handled in this way
with minimal impact on the organisational structure.
PRESIDENT
FINANCE & ADMINISTRATION
• Accounting
• IT
• Personnel
• IR
16 Organisation
TECHNOLOGY & ENGINEERING
• Sensor technology
• Algorithm development
• Processor development
• System engineering
• Patent issues
• Production issues
MARKETING
• Marketing
• Sales
• Technical support
Share data and ownership structure
Shares in Fingerprint Cards were floated on the New Market list of
the Stockholm Stock Exchange on May 8, 1998. Since April 19, 2000
the shares are traded on its Nordic List. One roundlot comprises
200 shares. The Company publishes quarterly reports and other
share market information and otherwise complies with the rules
and practices applying to share market companies in accordance
with the Stockholm Stock Exchange.
The Shares
As at December 31, 2006, Fingerprint Cards share capital totalled
SEK 2,224,487 allocated among 11,122,434 shares made up of 300,000
shares in Series A and 10,822,434 shares in series B, each with a
quota value of SEK 0.20. All shares confer an equal right to a share
in corporate profits, while the Articles of Association contain a preexemption clause relating to the A shares.
As at December 29, 2006, the B share was traded to the price of
SEK 16.20.
Allocation of the share capital as at december 31, 2006
No. of shares
No. of votes
Share of
capital in %
Share of
votes in %
Series A
Series B
300,000
10,822,434
3,000,000
10,822,434
2,7
97,3
21,7
78,3
Total
11,122 434
13,822 434
100,0
100,0
Type of share
Changes in share capital
Year
Event
Quota
value, SEK
Changes in
shares
Total No.
of shares
Increase in
share capital
Total
share capital
1997
1997
1997
1997
1998
2000
2000
2005
2006
Split 500:1
Bond issue
New share issue
New share issue
New share issue
New share issue
New share issue
New share issue
New share issue
0,20
0,20
0,20
0,20
0,20
0,20
0,20
0,20
0,20
249,500
250,000
2,000,000
370,000
2,000,000
540,000
938,258
3,000,000
1,774,176
250,000
500,000
2,500,000
2,870,000
4,870,000
5,410,000
6,348,258
9,348,258
11,122,434
0
50,000
400,000
74,000
400,000
108,000
187,651
600,000
354,835
50,000
100,000
500,000
574,000
974,000
1,082,000
1,269,651
1,869,651
2,224,486
No. of
A-shares
No. of
B-shares
Total No.
of shares
No. of
votes
Capital
in %
Votes in
in %
Technoimagia Sweden AB
Lennart Carlson
Non-Swedish owners
of which Finn Larsen
other non-Swedish owners
Others
300,000
200,000
719,950
3,132,037
490,000
2,642,037
6,770,447
500,000
719,950
3,132,037
490,000
2 642,037
6,770,447
3,200,000
719,950
3,132,037
490,000
2,642,037
6,770,447
4,5
6,5
28,1
4,4
23,8
60,9
23,2
5,2
22,7
3,5
19,1
48,9
Total
300,000
10,822,434
11,122,434
13,822,434
100,0
100,0
Owner structure as at december 31, 2006
Shareholder
Number of shareholders as at December 29, 2006: 7,188
Share data and ownership structure 17
Administration report
The Board and President of Fingerprint Cards AB (publ), company
registration number 556154-2381, hereby present the annual accounts and consolidated accounts for the fiscal year 2006. The company constitutes the parent company of the wholly owned subsidiary
Fingerprint Security System Databärare AB, company registration
number 556239-5938.
Operations in general
The Company has developed electronic systems that determine personal identity by analysing the unique fingertip patterns of individuals.
The systems comprise microchips with algorithms that scan, store
and compare fingertip patterns without the help of any PC processor.
Two types of capacitive sensors have been developed, an extremely
small swipe sensor and a flatbed sensor. Processor ASICs and algorithms have been developed for each type of sensor. By virtue of its
smallness, low power consumption and the possibility of very low
production costs, the technology can be integrated in volume products
such as smart cards and mobile (cell) phones, where the requirements
for such features are extremely high. Other applications for the
technology include access control systems for buildings and products
for log-on to computers and IT networks.
Significant events during the fiscal year
In the latter part of the year the Company carried through a new stock
issue directed to the existing shareholders. This issue comprised
approximately 2.8 million shares of series B and brought MESK 70.1
before issues costs to the Company. The motive for the new issue was
to provide the Company with sufficient capital for its continuing operation; to cover the increased need for working capital that will follow
from a planned business expansion; and finally to finance necessary
measures that will be taken in order to make production of the sensor
component more effective at the supplier level.
The Company’s principal shareholder, Technoimagia Sweden AB,
fully subscribed to for its share in the new issue. Before the new
issue it held 50.3 percent of the total votes and 35.9 percent of the
capital. Following large sales of shares this ownership has now been
reduced, and after the new issue was registered in early 2007, Technoimagia’s share of the total votes was down to approximately 28
percent, and its share of the capital approximately 12 percent.
During the year the Company’s area sensor technology showed
very positive sales growth, giving strong grounds for optimism from
the future completion of current development in production and delivery capabilities, and clearing the bottleneck restrictions in supply
to customers.
At sales level the distributor strategy was broadened and consolidated. The appointment of a new sales manager was followed by
the licensing of a new distributor for the USA, and orders through
the year showed that continuous efforts to build distributor and developer relationships in the Asian market were paying off.
Expectations of future developments
The Company expects that the healthy demand for its products in 2006
will continue well into 2007 based on current market developments alone.
Considering this positive situation, the plan is to increase production,
and thereby sales considerably. The recently carried through new issue
has brought the Company the necessary financial resources for this expansion. A further condition for achieving a higher business volume is
18 Administration report
that the Company can participate in the competition for larger orders,
which in turn requires that the Company can offer competitive prices.
Future developments in the Company’s technology offering are
centred on competitive market pricing and improved sales margins.
The coming year will see the first deliveries of the Company’s new
ASIC processor which has been redesigned to be considerably smaller than the present processor, and will have greater capacity, new
functions, and better power efficiency. This new ASIC will bring an
eighty percent reduction in production costs. Production of the Company’ sensor component – the most complex from the production
point of view – is being improved to meet the expectation of volume
orders and to deliver a more competitive market price along with
better sales margins during the course of the year.
Research and development operations
Work within technology development and production focused for the
most part on raising the production capacity of area sensors at the
Company’s sub-contractors, and on the development of new technical solutions within the areas of packaging and processor technology.
During the year the ASIC processor was redesigned to take advantage of more advanced production processes as well as to deliver better performance and lower power consumption, both of
which are in line with the Company’s commitment to delivering increasing value at the embedded solutions level. This ASIC development will also benefit performance of the Company’s identification
algorithm operation.
Sensor development work during 2006 was conducted with a
view to improving the production process, and this showed results
even within the year, achieving a five-fold increase in production volumes. Other developments in sensor packaging were investigated
and developed with the view to new investments in specific production equipment.
During the year the internal and external technology development costs amounted to MSEK 9.5 (6.2). Of these expenses MSEK
2.2 (0) have been set up as an asset in accordance with the recommendation and statements of the Swedish Financial Accounting
Standards Council, RR15 Intangible assets.
Financial position
Equity, as of December 31, 2006, amounted to MSEK 100.9 (58.7). During
the year the new issue brought MSEK 62 after issue costs. The consolidated equity/assets ratio was 93.1 % (96.2). Consolidated available
liquid assets including current investments as at December 31, 2006,
totaled MSEK 71.1 (40). Other current receivables amounted to MSEK
6.7 (1.0). The consolidated working capital amounted as at December
31 to MSEK 86.9 (44.3).
The parent company’s available liquid assets up to 31 December
2006, short term investments included, amounted to MSEK 71 (39.9).
Fixed assets, capital expenditure and depreciation
During the year, MSEK 0.1 (0.0) was invested in equipment. Development costs set up as an asset during the period were MSEK
2.2 (0.0).
Depreciation
Development costs were depreciated according to plan by 15 % annually. Equipment is depreciated by 20% annually.
International Financial Reporting Standards (IFRS)
With effect from 2005 Fingerprint Cards AB has been applying IFRS
in its consolidated financial statements in compliance with an EU
directive that applies to all listed companies in the EU.
Significant events after the end of the fiscal year
In January 2007 Fingerprint Cards´ Chinese distributor Hardware &
Software Technology Co. placed an order for the Company’s fingerprint sensors worth MSEK 22. The sensors will be used in IT security
products and will follow up deliveries on previous orders that began
in the end of 2005 and continued throughout 2006. Later on in
February the Company received a further order worth MSEK 21 from
the same customer.
The board and its work
The Company Board consists of four members with solid experience
of entrepreneurial and board activities in listed companies. The President is part of the Board, which held sixteen meetings during the
year. The board member Mr Kashiwabara has attended three board
meetings while the other board members have attended all meetings.
Special instructions for the President describe the allocation of work
and authority between the latter and the Board. In addition, the Board
has adopted an operations code for its work. The latter specifies such
matters as the overall tasks of the Board with regard to corporate
organisation and economic administration. Furthermore, it describes
those matters that are to be discussed at the Board meetings and
which reports are to be presented to the Board. Financial results
and the financial position are regularly compared with budgets set
by the Board.
Proposed allocation regarding the Company’s loss
The following amounts in the parent company are at the disposal of
the Annual General Meeting, SEK:
Accumulated loss (SEK)
Loss for the year (SEK)
- 136,938,119
- 19,757,662
Total accumulated loss (SEK)
- 156,695,781
The Board and the President propose that the total accumulated
loss of SEK -156 695 781 be carried forward to a new account. The
Board and the President propose that no dividend will be paid for
the financial year. The annual accounts and consolidated accounts
in respect of 2006 for Fingerprint Cards AB (publ) were approved for
publication by the Board in its decision of 16 April 2006. It is proposed
that the annual accounts and consolidated accounts be adopted by
the Annual General Meeting to be held on 31 May 2007.
Gothenburg, April 19, 2007
Perc Brodén
Chairman
Taketoshi Kashiwabara
Gunnar Liljegren
Lennart Carlson
CEO & President
My auditor´s report was submitted on April 19, 2007
KPMG Bohlins AB
Jan Malm
Authorised Public Accountant
Administration report 19
Income statement
THE GROUP
Amount in SEK
THE PARENT COMPANY
Not
2006
2005
2006
2005
3
11,064,201
-10,848,588
2,714,862
-2,760,968
11,064,201
-10,848,588
2,714,862
-2,760,968
215,613
-46,106
215,613
-46,106
7
-4,341,449
-6,332,440
-9,525,046
-4,079,502
-6,473,649
-7,451,851
-4,341,449
-6,351,190
-9,525,046
-4,079,502
-6,492,399
-7,451,851
3,4,5,6,8
-19,983,322
-18,051,108
-20,002,072
-18,069,858
9
9
542,953
-298,526
530,992
-586
542,936
-298,526
530,992
-586
-19,738,895
-17,520,702
-19,757,662
-17,539,452
0
0
0
0
Profit/loss of the year
-19,738,895
-17,520,702
-19,757,662
-17,539,452
Attributable to
Parent company´s shareholders
Minority interest
-19,738,895
–
-17,520,702
–
-2.07
-2.07
-2.56
-2.56
Net sales
Cost of goods sold
Gross profit/loss
Selling expenses
Administrative expenses
Research and development costs
Operating profit/loss
Result from financial items
Financial income
Financial costs
Profit/loss after financial items
Tax on profit for the year
Earnings per share, SEK
Before dilution
After dilution
20 Income statement
10
Cash flow statement
THE GROUP
Amount in SEK
THE PARENT COMPANY
2006
2005
2006
2005
-19,738,895
-17,520,702
-19,757,662
-17,539,452
2,758,652
0
21,885
2,834,402
5,846
35,449
2,758,652
0
21,885
2,834,402
5,846
35,449
-16,958,358
-14,645,005
-16,977,125
-14,663,755
-389,988
-407,715
-389,988
-407,715
Cash flow from current operations before changes in
working capital
-17,348,346
-15,052,720
-17,367,113
-15,071,470
Change in working capital (excl. liquid funds)
Increase (-)/Decrease (+) of inventory
Increase (-)/ Decrease (+) in current receivables
Increase (+)/ Decrease (-) in current liabilities
-12,512,772
-3,772,978
5,118,662
1,692,832
112,127
-334,657
-12,512,772
-3,772,978
5,138,662
1,692,832
112,127
-299,157
Cash flow from current operations
-28,515,434
-13,582,418
-28,514,201
-13,565,668
Capital expenditure operations
Investment in intangible assets
Investment in tangible assets
-2,210,160
-90,110
0
0
-2,210,160
-90,110
0
0
Cash flow from capital expenditure operations
-2,300,270
0
-2,300,270
0
Financial operations
Redeemed options premiums
Issue of new shares and other owner contributions
0
62,000,223
-9,500
22,500,000
0
62,000,223
0
22,500,000
Total application of funds
62,000,223
22,490,500
62,000,223
22,500,000
Cash flow for the year
31,184,519
8,908,082
31,185,752
8,934,332
Liquid funds and current investments at the start of the year
Liquid funds and current investments at the end of the year
39,957,806
71,142,325
31,049,724
39,957,806
39,835,067
71,020,819
30,900,735
39,835,067
Source of funds
Operating Profit/loss
Adjustments for items not included in the cash flow
Depreciation
Disbursments of tangible assets
Other items not included in the cash flow
Taxes paid
Liquid funds are: cash and bank and current investments.
Cash flow statement 21
Balance sheet
THE GROUP
Amount in SEK
THE PARENT COMPANY
Not
20061231
20051231
20061231
20051231
11
13,693,426
14,035,103
13,693,426
14,035,103
12
297,329
414,035
297,329
414,035
Assets
Fixed assets
Intangible assets
Capitalised expenditure for development
Tangible assets
Equipment, fixtures and fittings
Financial assets
Participations in group companies
0
0
0
0
Total fixed assets
13,990,755
14,449,138
13,990,755
14,449,138
Current assets
Inventory
Advance payments to suppliers
Accounts receivables – trade
Other receivables
Prepaid expenses and accrued income
Current investments
Cash and bank balances
16,573,399
3,729,723
1,081,339
1,376,455
533,765
34,843,592
36,298,733
4,060,627
1,571,072
81,635
339,733
587,760
29,921,068
10,036,738
16,573,399
3,729,723
1,081,339
1,376,455
533,765
34,843,592
36,177,227
4,060,627
1,571,072
81,635
339,733
587,760
29,921,068
9,913,999
94,437,006
46,598,633
94,315,500
46,475,894
108,427,761
61,047,771
108,306,255
60,925,032
Total current assets
Total assets
22 Balance sheet
13
14
15
THE GROUP
Amount in SEK
Not
THE PARENT COMPANY
20061231
20051231
20061231
20051231
Equity
Share capital
Other contributed capital/Statutory reserves
On-going new share issue
Profit/loss brought forward
Profit/loss for the year
2,224,487
229,760,619
25,757,475
-137,069,598
-19,738,895
1,869,651
229,760,619
0
-155,436,808
-17,520,702
2,224,487
229,121,232
25,757,475
-136,938,119
-19,757,662
1,869,651
229,121,232
0
-155,305,279
-17,539,452
Total equity
100,934,088
58,672,760
100,407,413
58,146,152
4,859,651
0
710,956
1,923,066
469,025
0
407,154
1,498,832
4,859,651
410,169
705,956
1,923,066
469,025
408,869
402,154
1,498,832
7,493,673
2,375,011
7,898,842
2,778,880
108,427,761
61,047,771
108,306,255
60,925,032
None
None
None
None
None
None
None
None
Equity and liabilities
Current liabilities
Accounts payable – trade
Liabilities to group companies
Other liabilities
Accrued expenses and prepaid income
Total current liabilities
Total equity and liabilities
16
Pledged assets and contingent liabilities
Amount in SEK
Pledged assets
Contingent liabilities
Balance sheet 23
Changes in equity
Proftit/loss brought
forward including
profit/loss for the year
Total
Share capital
Other capital
contribution
1,269,651
207,870,119
-155,436,808
-17,520,702
53,702,962
-17,520,702
Total change in assets excl transactions
with the company´s shareholders
New share issue
Redeemed options premiums
1,269,651
600,000
207,870,119
21,900,000
-9,500
-172,957,510
36,182,260
22,500,000
-9,500
At the end of the year 2005
1,869,651
229,760,619
-172,957,510
58,672,760
At the start of the year 2006
1,869,651
229,760,619
-172,957,510
-19,738,895
58,672,760
-19,738,895
New share issue 1)
1,869,651
354,836
229,760,619
-192,696,405
35,887,912
38,933,865
36,242,748
25,757,475
2,224,487
-156,808,493
100,934,088
The Group
25,757,475
255,518,094
RESTRICTED EQUITY
Parent company
2004 loss brought forward
New share issue
NON-RESTRICTED EQUITY
Share capital
Restricted
reserves
On-going new
share issue
Non-restricted
reserves
Profit/loss
for the year
1,269,651
207,221,232
0
-133,622,541
-21,697,938
15,200
-21,697,938
21,697,938
-17,539,452
Total
53,170,404
15,200
-17,539,452
New share issue
1,269,651
600,000
207,221,232
21,900,000
0
-155,305,279
-17.539,452
35,646,152
22,500,000
1,869,651
229,121,232
0
-155,305,279
-17,539,452
58,146,152
2005 loss brought forward
Effects of Group contribution
1,869,651
229,121,232
0
-155,305,279
-17,539,452
18,700
-17,539,452
17,539,452
58,146,152
-19,757,662
New share issue 1)
1,869,651
354,836
2,224,487
229,121,232
0
-172,826,031
35,887,912
-19,757,662
38,407,190
36,242,748
25,757,475
-136,938,119
-19 757,662
100,407,413
25,757,475
229,121,232
25,757,475
1) New share issue costs balanced against equity totaled SEK 8 111 652.
Restricted reserves
It is not permitted to reduce restricted reserve by distribution of profit.
Other capital contribution/share premium reserve
From 1 January 2006 premium reserve is included in non-restricted equity.
Non-restricted equity
Retained earnings
This item consists of the previous year´s non-restricted equity and after payment of dividend, if any.
2006 years premium reserve is booked against retained earnings. Together with the profit/loss for the year
and non-restriced equity, this makes up the amount that is available for distribution to shareholders.
24 Changes in equity
18,700
-19,757,662
Notes and supplementary disclosures
NOTE 1
Accounting principles’ compliance with standards and
statutory requirements
The consolidated financial statements are made up in accordance
with the International Financial Reporting Standards (IFRS) issued
by the International Accounting Standards Board (ISAB) and the
interpretative recommendations issued by the International Financial
Reporting Interpretations Committee (IFRIC), which have been approved
by the European Commission for application within the EU. The Swedish
Financial Accounting Standards Council’s recommendation RR 30
Complementary Accounting Rules for The Group has been applied.
The parent company applies the same accounting principles as
the Group and the accounts are made up in accordance with RR 32.
Principles applied in the making of the parent company’s
financial statements and those of the Group
The parent company’s operative currency is the Swedish krona,
which is also the reporting currency of the parent company and the
Group. This means that the financial reports of the parent company
and the Group are made up in Swedish kronor.
Assets and liabilities are stated at their historic acquisition value,
except for certain financial assets. The financial assets that are valued
at fair value are classified as financial assets valued at fair value via
the income statement.
Classifications
Fixed assets, long-term liabilities and provisions consist in all essentials solely of amounts that are expected to be recovered or paid more
than 12 months after the closing date. Current assets and shortterm liabilities consist in all essentials solely of amounts that are
expected to be recovered or paid within 12 months of the closing date.
Reporting by segment
The primary criterion for classification of the Group’s segments is
geographic areas. The secondary criterion is their line of business.
Consolidated financial statements
The consolidated financial statements relate to the parent company
and those companies in which the parent company directly or indirectly controls more than half the votes, or exercises control in some
other way.
The consolidated financial statements are made up using the
acquisition method.
Income
Sales of products are stated after the Group has transferred to the
buyer the critical risks and utility associated with ownership of the
sold goods, and has no remaining right or possibility to retain actual
control over the sold goods.
Revenue recognition from services is recorded when the economic
outcome of accomplished service can be reliably calculated and where
the economic benefits will fall to the Company’s share.
Intangible fixed assets
Research costs are taken into the profit and loss account when they
occur. Development costs are capitalised to the extent they are expected to generate financial benefits in the future. The stated value
includes expenditure on material, direct labour, and indirect costs
that can be attributed to the asset. Other development expenditure
is taken into the profit and loss account as a cost when it is occurred.
Development costs capitalised in the balance sheet are stated at their
acquisition value less accumulated depreciation and write-downs.
Tangible fixed assets
Tangible fixed assets are stated at their historical acquisition cost
after deduction of accumulated depreciation and any write-downs.
Repair and maintenance costs are taken into profit and loss account
when they incurred. The Group does not capitalise the interest component on the acquisition value of fixed assets.
Depreciation according to plan and write-downs
Depreciation according to plan is based on original acquisition values
and estimated useful economic life.
Depreciation according to plan has been undertaken as follows:
Capitalised expenditure for R&D and similar
15%
Equipment, tools, fixtures and fittings
20%
Personal computers
20%
Group contributions and shareholder contributions legal entities
Group contributions and shareholder contributions are stated in accordance with the interpretations by the emerging issues task force of
the Swedish Accounting Financial Standards Council. Shareholder
contributions are taken direct against equity by the donor to the extent
that no write-down in value is required. Group contributions are stated
on the basis of their financial implications. This means that Group
contributions paid in order to minimise the Group’s total tax payments are taken direct against retained earnings after deduction of
their actual tax effect.
Taxes
Total tax as stated in the profit and loss account comprises current
tax and deferred tax. Current tax is the tax to be paid or received for
the year in question. This also includes any adjustment to current tax
for previous periods. Deferred tax is calculated using the balance
sheet method on the basis of temporary differences between stated
values and values for tax purposes of assets and liabilities, applying
the tax rates and rules that have been approved or announced as of
the closing date. Temporary differences are not taken into account
in goodwill arising upon consolidation, nor in differences attributable to interests in subsidiary and associate companies that are not
expected to become liable to taxation in the foreseeable future.
Deferred tax assets in respect of tax-deductible temporary differences and loss allowances are stated only to the extent that they
are likely to be utilised and entail lower tax payments in the future.
Valuation of inventories
Inventories are valued at the lower of acquisition value or production
cost after allowing for necessary obsolescence or at net selling price.
Write-downs
The book values of the Group´s assets are subjected to impairment
tests at each balance sheet date. Exceptions apply to assets for inventory and deferred tax assets. If an indication of a need for write-
Notes and supplementary disclosures 25
down arises, the assets recoverable value is calculated. Impairment
tests are conducted on the aforementioned exceptional assets pursuant to the relevant standard.
Financial instruments
Financial instruments are valued and stated in the consolidated
financial statements in accordance with IAS 39.
NOTE 2
Financial risk management
The Group’s financial activities and management of financial risks are
carried out on the basis of the financial policy established by the Board
and are characterised by a low level of risk. The aim is to minimize
the Group’s capital costs by using suitable means of financing and
to effectively manage and control the Group’s financial risks.
Financial assets
Money at bank, loan receivables and accounts receivable are valued
at the amortised cost. Placements are valued regularly at market
value; changes in market value are taken into the income statement.
Monetary financial assets denominated in foreign currencies are revalued at closing day rates.
Currency risk
Transaction exposure. The Group’s sales are US dollar 96% and in
SEK 4% while cost of goods sold is in US dollar 50% and EUR 10%
and SEK 40%. Operating expenses are mainly in SEK.
Currency fluctuations are not hedged by means of currency forwards or options.
Financial liabilities
Financial liabilities are valued initially at the value of funds received
after deduction of any transaction costs. Normally, the liabilities are
valued regularly at their amortised cost using the effective interest
method. Monetary financial liabilities denominated in foreign currencies are re-valued at closing day rates.
Credit risks
The Group’s financial assets amounts to 74.1 MSEK (40.9) of which
36.3 MSEK (10) is money at bank. Loss on bad debts has over the
years been low and this is also true of 2006. The risk is limited by
pre-payments and by obtaining credit reports on customers.
Computation of fair value
The fair value of financial instruments that are traded on an active
market is based on listed market prices.
Actual value
Leasing
Leasing of assets over which the lessor in all essentials retains ownership is classified as operational leasing and the leasing charge is
stated as a linear cost over the period of the lease. All leasing agreements are stated as operational.
26 Notes and supplementary disclosures
Group
The book value of financial assets and liabilities agrees with actual
value and amounts to 74.1 MSEK (40.9) and 7.5 MSEK (2.3) respectively.
No forward cover has taken place for currencies components in the
above amounts.
Parent company
The book value of financial assets and liabilities agrees with actual
value and amounts to 74 MSEK (40.8) and 7.9 MSEK (2.7) respectively.
No forward cover has taken place for currencies components in the
above amounts.
NOTE 3
Reporting by segment, TSEK
The Group´s primary criterion for dividing the business into segments is based on geographical territories; EMEA (Europe, Middle East
and Africa), Asia and America. The information presented regarding net sales is stated on the basis of where Fingerprint Cards' customers
are located.
Information about primary segmentation.
EMEA
ASIA
AMERICA
GROUP TOTAL
2006
2005
2006
2005
2006
2005
2006
2005
Net sales
Costs
Not allocated costs
809
-1,256
932
-2,348
9 829
-15,263
1 356
-3,416
426
-662
426
-1,074
11,064
-17,181
-13,866
2,714
-6,839
-13,926
Operating result
Net financial items
-447
-1,416
-5,434
-2,060
-236
-648
-19,983
244
-18,051
530
-19,739
-17,521
Profit for the year
Information about secondary segmentation.
The Group´s secondary ground for division into segments is based on products and services.
PRODUCTS
Net sales
Assets
Not allocated assets
Capital expenditure
LICENCES
SERVICES
GROUP TOTAL
2006
2005
2006
2005
2006
2005
2 006
2005
10,558
70,220
2,452
28,014
333
2,215
262
3,113
173
1,151
0
0
2,230
0
70
0
0
0
11,064
73,585
34,843
2,300
2,713
31,127
29,921
0
NOTE 4
Employees and personnel expenses
Parent Company and the Group
Sweden
Total for the Parent Company and the Group
2006
2005
Average no. of
employees
Of whom men
Average no. of
employees
Of whom men
11
11
11
11
11
11
11
11
Number of employees at the end of the year was 11(of whom all were men).
Salaries and other remunerationand
social security expenses
2006
Salaries and
remunerations
The Parent Company and the Group
(of which pension expenses)
7,029,267
2005
Social Security
expense
3,946,223
1,321,185*
Salaries and
remunerations
6,652,971
Social Security
expense
3,529,967
1,039,500*
* Of the pension expenses for the Parent Company SEK 350 000 (350 000) relates to the President, to whom the Company's outstanding pension obligations amount to 0. (0)
Salaries and other remunerations allocated among the President, board members and other employees of the Parent Company and the Group
2006
Sweden
(Including bonuses etc.)
2005
President and
board members
Other employees
President and
board members
Other employees
1,949,672
0
5,079,595
0
2,035,684
0
4,617,287
0
Salaries and other remunerations consist of employees in the Parent Company
Salaries and other remunerations allocated among the President, the board and other officers
Remuneration of the chairman and members of the board is paid according to the resolution by the general meeting of shareholders. There
has not been any remuneration for work related to committees. Remuneration to the President and other officers of the Company consists
of basic salary and pension. The other officers of the Company referred to are the three persons who, together with the President, represent
the group management.
Basic salary/
directors remuneration
Variable
remuneration
Other
benefits
Pension cost
Total
80,000
110,000
1,561,000
2,008,750
0
0
0
0
0
0
0
0
0
0
350,000
393,220
80,000
110,000
1,911,000
2,401,970
Shareman of the board
Members of the board
President and CEO
Other officers of the company
A total fee of SEK 190,000 (190,000) was paid to the Chairman and other Board members during the year.
Notices of termination and severance pay
The President's post is subject to twenty-four-months' notice of termination if notice is given from the Company and twelve months if notice
given by the President, during which salary and other benefits are payable at an unchanged level. For other members of the executive
management the notice of termination is between three and six months during which salaryand other benefits are payable at an unchanged level.
Condition of pensions
The President has an individual company pension paid for by Fingerprint Cards where the premiums amount to a maximum of SEK 350,000 a year.
For other members of the executive management the equivalent pension premiums amount to between eleven and twenty-one percent of the salary
depending on age and the level of salary.
Fingerprint Cards offers premium-based pensions only. Pension premiums refer to premiums affecting the 2006 result.
Compensation issues – decision process
Considering the Company's size the board has concluded that the company currently has no need for a compensation or an audit committee.
Base salary and benefits for the President are negotiated and decided by the chairman of the board. The President negotiates and decides
base salary and benefits for all other employees.
Skill and level of education
Out of the Company personnel of eleven, everyone holds an academic degree.
Absence due to illness, 20060101 – 20061231
During the period 20060101 - 20061231 the total absence due to illness was 504 (304) hours. Compared to the total working hours for the period,
22,626 (23 208) hours, the absence due to illness was 2.3 % (1.3).
Absence due to illness that does not exceed a continuous period of 60 days, divided by gender. All absences due to illness concern men.
Absence due to illness that does not exceed a continuous period of 60 days, divided by age group
Hours of absence or illness in relation to working hours by age group
Absence due to illness that exceeds a continuous period of 60 days.
There has not been any absence due to illness that exceeds a continuous period of 60 days.
30 – 49
2.6%
50 –
1.0%
NOTE 5
Depreciation/write-down of tangible, intangible and financial fixed assets.
Development costs that have been set up as assets are depreciated according to plan 15 %.
This is estimated to be equivalent to the expected service life.
THE GROUP
Capitalised expenditure for R&D and similar
Equipment, tools fixtures and fittings
THE PARENT COMPANY
2006
2005
2006
2005
-2,551,837
-206,815
-2,551,837
-282,565
-2,551,837
-206,815
-2,551,837
-282,565
-2,758,652
-2,834,402
-2,758,652
-2,834,402
NOTE 6
Auditor's fees and remuneration.
THE GROUP
KPMG Bohlins AB
Auditor´s fees
Remuneration other assignment
THE PARENT COMPANY
2006
2005
2006
2005
92,400
5,150
95,200
22,045
92,400
5,150
95,200
22,045
97,550
117,245
97,550
117,245
Auditor's fee refer to the audit of the annual report, the accounting records as well as a review of the CEO and the Board of Directors'
administration of the Company, other tasks that are the responsibilty of the Company's auditors, and other advice or assistance resulting
from observations in such audits or performance of other tasks. All other work is reported as "remuneration other assignments".
NOTE 7
Development costs.
During the year the internal and external technology development expenses amounted to SEK 9.505.738 (6.176.370). Development cost has
been set up as an asset during the period with SEK 2.210.160 (0).
NOTE 8
Operational leasing.
Operational leasing where the company is lessee, (rent of office premises).
THE GROUP
Due for payment within one year
Due for payment within 2–5 years
Due for payment after more than 5 years
THE PARENT COMPANY
2006
2005
2006
2005
1,313,600
1,686,000
0
1,312,000
2,952,000
0
1,313,600
1,686,000
0
1,312,000
2,952,000
0
2,999,600
4,264,000
2,999,600
4,264,000
NOTE 9
Financial items.
THE GROUP
2006
THE PARENT COMPANY
2005
2006
2005
Interest income
542,953
530,992
542,936
530,992
Total
542,953
530,992
542,936
530,992
Interest costs
Exchange differences
-1,995
-296,531
-586
0
-1,995
-296,531
-586
0
Total
-298,526
-586
-298,526
-586
NOTE 10
Tax.
THE GROUP
THE PARENT COMPANY
2006
2005
2006
2005
-19,738,896
-17,520,702
-19,757,663
-17,524,252
Tax at prevailing tax rate, 28%
5,526,891
Non-deductible expenses
21,497
Expenses not included in profit/loss
-7,573,556
Changes in loss carried forward without corresponding
Set up of deferred tax
2,025,168
4,905,797
30,799
0
5,532,146
21,497
-7,573,556
4,906,791
30,799
0
-4,936,596
2,019,913
-4,937 590
0
0
0
Profit/loss before tax
Accounted effective tax
0
Fingerprint Cards deficit allowance for tax purposes has been set at MSEK 77.8. The deficit tax allowance for 2006 is estimated to MSEK 22.5.
No deferred tax benefits have been reported based on the above losses.
NOTE 11
Capitalised R&D expenses etc.
THE GROUP
Accumulated acquisition value
THE PARENT COMPANY
20061231
20051231
20061231
20051231
At the start of the year
Capitalisations for the year
26,213,865
2,210,160
26,213,865
0
26,213,865
2,210,160
26,213,865
0
At the end of the year
28,424,025
26,213,865
28,424,025
26,213,865
Depreciation according to plan for the year
-12,178,762
-2,551,837
-9,626,925
-2,551,837
-12,178,762
-2,551,837
-9,626,925
-2,551,837
-14,730,599
-12,178,762
-14,730,599
-12,178,762
Closing residual value according to plan
13,693,426
14,035,103
13,693,426
14,035,103
Accumulated depreciation according to plan
NOTE 12
Equipment, tools, fixtures and fittings.
THE GROUP
THE PARENT COMPANY
2006123
20051231
20061231
20051231
New acquisitions
Disposals
2,587,008
90,109
0
2,667,146
0
-80,138
2,587,008
90,109
0
2,667,146
0
-80,138
2,677,117
2,587,008
2,677,117
2,587,008
Disposals
Depreciation according to plan for the year
-2,172,973
0
-206,815
-1,964,700
74,292
-282,565
-2,172,973
0
-206,815
-1,964,700
74,292
-282,565
-2,379,788
-2,172,973
-2,379,788
-2,172,973
297,329
414,035
297,329
414,035
Accumulated depreciation according to plan
Closing residual value according to plan
NOTE 13
Participations in group companies.
THE GROUP
THE PARENT COMPANY
20061231
20051231
20061231
20051231
New acquisitions
0
0
0
0
6,000,000
0
6,000,000
0
0
0
6,000,000
6,000,000
Write-down
0
0
0
0
-6,000,000
0
-6,000,000
0
0
0
-6,000,000
-6,000,000
Closing book value
0
0
0
0
No. Of
participations
Share
in %
Book
value
1,000
100.0
0
Accumulated write-downs
Spec. of Parent Company holdings of participations
in group companies
Fingerprint Security System Databärare AB,
Reg. no. 556239-5938, registered office in Gothenburg
The parent company´s purchase from group companies amounted to SEK 20,000 (20,000). No sales has been recorded to the group campanies.
NOTE 14
Prepaid expenses and accrued income.
THE GROUP
Accrued interest income
Pension premiums
Rent
Miscellaneous
THE PARENT COMPANY
20061231
20051231
20061231
20051231
8,531
105,371
328,409
91,454
30,415
94,896
369,070
93,379
8,531
105,371
328,409
91,454
30,415
94,896
369,070
93,379
533,765
587,760
533,765
587,760
Market value or
equal. 20061231
Book value
20061231
Market value or
equal. 20051231
Book value
20051231
34,843,592
34,843,592
29,951,483
29,921,068
34,843,592
34,843,592
29,951,483
29,921,068
NOTE 15
Current investments.
Parent Company and the Group
Classification of securities
Commercial papers
NOTE 16
Accrued expenses and prepaid income.
THE GROUP
Accrued salaries and social security costs
Other items
THE PARENT COMPANY
20061231
20051231
20061231
20051231
542,762
1,380,304
777,021
721,811
542,762
1,380,304
777,021
721,811
1,923,066
1,498,832
1,923,066
1,498,832
Audit Report
To the annual meeting of the shareholders of Fingerprint Cards AB
Corporate identity number 556154-2381
We have audited the annual accounts, the consolidated accounts,
the accounting records and the administration of the board of directors and the managing director of Fingerprint Cards AB for the
year 2006. The annual accounts and the consolidated accounts are
presented in the printed version of this document on pages 18–32.
The board of directors and the managing director are responsible for
these accounts and the administration of the company as well as
for the application of the Annual Accounts Act when preparing the
annual accounts and the application of International Financial Reporting Standards IFRS as adopted by the EU and the Annual Accounts Act when preparing the consolidated accounts. Our responsibility is to express an opinion on the annual accounts, the consolidated accounts and the administration based on our audit.
We conducted our audit in accordance with generally accepted
auditing standards in Sweden. Those standards require that we plan
and perform the audit to obtain high but not absolute assurance that
the annual accounts and the consolidated accounts are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the accounts.
An audit also includes assessing the accounting principles used and
their application by the board of directors and the managing director and significant estimates made by the board of directors and the
managing director when preparing the annual accounts and the
consolidated accounts as well as evaluating the overall presentation of information in the annual accounts and the consolidated accounts. As a basis for our opinion concerning discharge from liability, we examined signi-ficant decisions, actions taken and circumstances of the company in order to be able to determine the liability,
if any, to the company of any board member or the managing director. We also examined whether any board member or the managing
director has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. We
believe that our audit provides a reasonable basis for our opinion
set out below.
The annual accounts have been prepared in accordance with the
Annual Accounts Act and give a true and fair view of the company’s
financial position and results of operations in accordance with generally accepted accounting principles in Sweden. The consolidated accounts have been prepared in accordance with International
Financial Reporting Standards IFRS as adopted by the EU and the
Annual Accounts Act and give a true and fair view of the group’s financial position and results of operations. The statutory administration report is consistent with the other parts of the annual accounts and the consolidated accounts.
At our audit of the management´s administration we have noted
that the board member Taketoshi Kashiwabara has only attended
three board meetings during 2006 by phone out of totally 16 board
meetings during 2006, which also appears from the administration
report on page 19. We find it remarkable that a board member so little
has actively attended the board meetings as the board during the year
2006 has had a lot of important issues to decide upon.
We recommend to the annual meeting of shareholders that the
income statements and balance sheets of the parent company and
the group be adopted, that the loss of the parent company be dealt
with in accordance with the proposal in the administration report
and that the members of the board of directors and the managing
director be discharged from liability for the financial year.
Göteborg April 19, 2007
KPMG Bohlins AB
Jan Malm
Authorized Public Accountant
Audit Report 33
Five – Year summary, the group
Turnover for the year (MSEK)
Profit/loss for the year (MSEK)
Liquid assets incl. investments, year end (MSEK)
Equity, year end (MSEK)
Balance sheet, year end (MSEK)
Capital to asset ratio (%)
No of employeés, year end
Profit/loss per share (SEK)
Profit/loss per share after full dilution (SEK)
Liquid assets incl. investments per share, year end (SEK)
Equity per share, year end (SEK)
No of shares, year end (thousands)
No of shares, avarage, year end (thousands)
No of shares after full conversion (thousands)
Share price, year end (SEK)
Market capitalisation, year end (MSEK)
34 Five - Year summary, the group
2006
2005
2004
2003
2002
11,1
-19,7
71,1
100,9
108,4
93,1
11
-1,77
-1,77
6,39
9,07
11 122,4
9 495,8
9 495,8
16,2
180
2,7
-17,5
40,0
58,7
61
96,2
11
-1,87
-1,87
4,28
6,28
9 348,3
6 848,3
7 073,3
12,0
112
2,9
-21,6
31,0
53,7
56,4
95,2
12
-3,40
-3,40
4,88
8,46
6 348,3
6 348,3
6 698,3
13,30
84
5,2
-21,2
60,5
75,3
81,9
91,9
20
-3,34
-3,34
9,53
11,86
6 348,3
6 348,3
6 785,8
30,00
190
4,4
-28,7
91,6
96,4
103,9
92,8
20
-4,52
-4,52
14,43
15,19
6 348,3
6 348,3
6 860,5
15,80
102
Board, Management, The Auditor
BOARD OF DIRECTORS
Perc Brodén
Gunnar Liljegren
Born 1944, appointed 2000
Chairman of the Board since 2005
Senior Advisor: Effectum Franchise Consulting
Chairman of the Board: Tankbar IM AB
President: Net Sales pro mergo AB
Shareholding in Fingerprint Cards AB: 16,000 B-shares
Shareholding in Fingerprint Cards AB: 0
Taketoshi Kashiwabara
Lennart Carlson
Chairman of the Board: Secure Design KK
President: Technoimagia Sweden AB
President: Fuji Digital Imaging Co. Ltd
President: Fingerprint Cards AB
Chairman of the Board: Finansforum AB
Shareholding in Fingerprint Cards AB: 300,000 A-shares
and 200,000 B-shares through Technoimagia Sweden AB
Shareholding in Fingerprint Cards AB: 719.950 B-shares
EXECUTIVE MANAGEMENT
Lennart Carlson
Peter Svensson
President, born 1946
VP Technology & Engineering, born 1963
Employed since 1997. Masters degree in political
science and economics from Gothenburg University. International business experience UK. Entrepreneurial experience from several industries.
Founder and owner of Finansforum AB.
Employed since 1999. Master of Science (Electronics) from Chalmers University. Technical development manager Sigma. Previously manager
algorithm and processor development at
Fingerprint Cards AB.
Shareholding in Fingerprint Cards AB: 719,950 B-shares
Lars Lundgren Jr
Anders Sävfält
VP Marketing & Sales, born 1962
Chief Accounting Officer, born 1953
Employed since 2001. Formerly regional manager
at Merant Ltd and partner in several IT-companies.
Employed since 2005. Graduate in Business Administration from Gothenburg University. Previously
CAO within the Frontec group.
THE AUDITOR
Jan Malm
Born 1960
Ordinary auditor since 2003, KPMG Bohlins AB
Board, Management, The Auditor 35
PICTURES: ANNA HULT
Visiting adress Västra Hamngatan 8. Post Box 2412, SE-403 16 Göteborg. Phone 031-60 78 20. E-mail info@fingerprints.com
www.fingerprints.com

Annual report 2006 Fingerprint Cards AB (publ)

Transcription

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