Precise Biometrics AB (publ)

It is August 26th and Precise Biometrics today released its Q2 earnings report. For the first time I would like to give a special welcome to the previous shareholders of FPC who are now shareholders of Precise Biometrics as a result of the recent merger. Today I am joined by Precise Biometrics CEO Joakim Nydemark. Hello! Hej! Good to see you. So there's been a lot happening in the last few months, in particular the merger with FPC and the recent capital raise. But perhaps we should start with the Q2 results. So if you were to sum up the second quarter, what are you most pleased with and what has been the most challenging?

I would say during the quarter there has been, of course, a lot of work related to the merger. And even though the merger was closed after the quarter, I'm still very proud that we finalized that. We have started the integration work and we have also finalized now the rights issue. I'm also pleased with the positive response we have got from customers and partners related to the merger, where we think that, I mean, even though we strongly believe in this ourselves, it's always nice to hear the same sort of opinion and feedback from the customers and partners and markets. The third thing I would like to raise is that we continue to see growth in access and business management, which is also positive. The more challenging side is, of course, the drop in revenue and volume, which is nothing that I'm pleased with at all, of course. It has an explanation. It's related to the low-end market. And the thing is that the prices of hardware has increased. And this was something that we have seen coming. However, that is impacting to the largest extent, the low-end and non-ultrasonic market. So if we look at the ultrasonic market, that is sort of on track. However, the drop in volume now is related to other software for other sensors that we have. And we thought and it was estimated that we should be able to bridge that. So with a drop in the low-end market for other sensors, we were hoping for bridging that with the ultrasonic. However, we weren't able to really beat that, but we still see sort of the trend for our focus area ultrasonic. Moving forward here, I'm still confident in the business we have.

So, Dan, to go into some more of the actions that you've taken then to offset this drop in volume, you mentioned the ultrasonic, but also perhaps the merger and the cost control and any other particular actions that you would like to highlight?