FPC: The Biometrics Revolution Has Just Started

Summary

Fingerprint Cards, leading fingerprint sensor supplier with attractive valuation.

Fingerprint sensor market growing at a fast clip.

Current valuation of the company reflects a worst-case scenario.

wFingerprint Cards (OTC:FGRRF) is the world's number one fingerprint sensor supplier in the world. The company develops and sells solutions for fingerprint authentication. Although it is one of the industry leaders, the valuation is still very attractive for investors who are seeking opportunities in the technology sector.

According to MarketsandMarkets, the fingerprint sensor market had a valuation of $2.94 billion in 2015. It is expected to reach a value of $8.85 billion by 2022, growing at a CAGR of 18.9% between 2016 and 2022.

A fingerprint sensor captures fingerprints and compares it with an existing biometric template stored in its database. They are used to provide authentication and authorization most commonly used in consumer electronics like tablets, laptops, and smartphones.

Fingerprint sensors offer several advantages compared to other biometric authentication systems and are less costly. Security, reliability and the ease of access have resulted in wide acceptance that will only get more with new ways of use.

History

Fingerprint Cards is headquartered in Gothenburg, Sweden, and was established in 1997. Similar to Neonode (NASDAQ:NEON), another Swedish technology company, it has had a disturbing history.

Until 2005, Fingerprint was having problems to execute its business plan, and the company even thought of liquidating its assets.

Some new financing in 2005 and 2006 kept the company afloat. In 2007, some commercial success was booked with a large order of SEK 43 million ($4.6 million), delivering area sensor modules to the Chinese banking sector. Unfortunately, this was not the breakthrough everyone was hoping for to happen.