Oslo, Norway, 6 November 2019: IDEX Biometrics ASA, the leading provider of advanced fingerprint identification and authentication solutions, has commenced a restructuring program to right-size its organization for the current operational environment. The expense reductions are expected to result in a 30% reduction in annualized operating expense. The actions are expected to be largely completed in the fourth quarter of 2019.
The actions taken include reducing the number of staff and reducing other cash compensation costs. Other operating expenses not related to near-term revenue generation or critical development activities will also be reduced. The actions will take effect in the fourth quarter and the full impact is expected as of the first quarter of 2020.
The expense reductions are expected to lower IDEX’s break-even shipments point by more than 50% and the company will be able to achieve operating break-even at significantly lower shipment levels.
The company continues to monitor its cash position very closely and is actively pursuing a broad range of opportunities to supplement its cash flows from operations that include; strategic partnerships, joint development projects, monetizing IP, debt financings, and, additional R&D tax credits and support initiatives.
Stan Swearingen, CEO of IDEX Biometrics commented: “We continue to make steady progress on our strategic initiatives, and, we’re seeing the beginning of shipments and design-in wins in the access control market. However, the biometric payment card market is still a developing market and, as is common with most emerging growth markets, it is difficult to predict revenue streams with precision. As a result, we have decided to take certain expense reductions. These reductions are prudent and will provide extended cash runway while not impacting our strategic initiatives. We will maintain the capacity to support our customers and continue key roadmap development activities. Streamlining our cost structure was a difficult but necessary measure to achieve our strategic plan.”
For further information contact:
Stuart Hunt, Head of Investor Relations & Communications
+44 (0)1276 534 632
About IDEX Biometrics
IDEX Biometrics ASA (OSE:IDEX and OTC:IDXAF) is a leading provider of fingerprint identification technologies offering simple, secure and personal authentication for all. We help people make payments, prove their identity, gain access to information, unlock devices or gain admittance to buildings with the touch of a finger. We invent, engineer, and commercialize these secure, yet incredibly user-friendly solutions. Our total addressable market represents a fast growing multi-billion-unit opportunity.
For more information, visit www.idexbiometrics.com and follow @IDEXBiometrics
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
