IDBA: Q1 2022 Adds Revenues From New Customers and Continues its Sequential Growth

By Lisa Thompson

NASDAQ:IDBA

READ THE FULL IDBA RESEARCH REPORT

Q1 showed more product launches and design wins albeit at a slower pace than expected due to the worldwide chip shortage. While IDEX (NASDAQ:IDBA) was able to deliver its part, shortages of secure element chips caused what was available to be used in some cases to support currently used contactless cards rather than allocated to new biometric cards. Revenues in Q1 were generated by Bloomberg, IDEMIA, Zwipe, Dongwoon (first time), and one other customer that is also using product for security access.

We believe revenues are on track for Q2 2022 and expect consistent sequential improvement throughout the year. Where we end up for Q4 is still a question based on China lockdowns, other chip shortages, and general economic uncertainties.

Three cards were launched this quarter, with the first two via IDEMIA:

Rocker, an innovate fintech based in Stockholm, is already sold out of its new launched “Rocker Touch,” fingerprint card from IDEMIA. To get this card, customers must subscribe to Rocker’s Premium service, which costs SEK 99 (US$10.54) a month. The Premium level also includes a virtual card, full control of finances in one app, up to 1.20% in savings interest, up to 10% cash back, no withdrawal fees or currency surcharges, and travel insurance.

Manager.one also has a Visa card based on IDEMIA’s F.CODE that is a corporate payment card that also provides online expense management for businesses. Manager.one is an online banking platform, dedicated to professionals and company directors. It is a partnership between the Banque Wormser Frères and SaGa Corp, a Fintech company and was founded in 2017.

Zwipe is rolling out product to Fidor Bank. Fidor is a German bank with locations in Munich and Berlin.

There also will be six new cards coming to market in 2022 via the Infineon partnership:

1. IDEX announced its first design win for its turnkey solution in partnership with Infineon in Q4. The customer is unnamed Asian company and a leading global smartcard manufacturer. It expects its card to be certified in Q3 2022 with initial shipments to follow in Q4.

2. On December 17th IDEX announced that Dongwoon Anatech of South Korea selected IDEX Biometrics as its biometric sensor partner for secure access control and digital identity solutions. Dongwoon Anatech received its first shipments from IDEX in Q1 2022.

3. On January 28th, IDEX announced its second design win for its turnkey solution and its first named customer. It now has a development agreement with MKSmart based in Hanoi who is a top ten provider of smart cards.

4. On April 11th, IDEX announced collaboration with E-Kart to market to Eastern Europe. E-Kart is a joint venture between global card manufacturer Gisecke & Devrient (G+D) and Eczacıbaşı Holding. E-Kart, as one of the largest card manufacturers in Europe, has a production capacity of 60 million smart cards. Cards are expected to begin being delivered to issuers in Q4 2022. This new biometric smart card represents the sixth design win for the IDEX Biometrics and Infineon Technologies platform solution.

5. The fifth card is from a US card manufacturer.

6. The sixth is from a card manufacturer based in Europe with US operations that caters to fintech companies aka challenger banks.

After the Quarter Ended

On May 12th, IDEX announced a collaboration with payment software provider Verisoft A.S. Verisoft is working to upgrade software systems so that biometric cards seamlessly operate with payment processors. This will ensure that transactions made with biometric cards are accepted for all size transactions despite not providing a PIN.

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