Biometric Technologies
The market for the company’s biometric platform suite continues to grow, and Precise continues to hold a very strong position, primarily in the ultrasonic and anti-spoof segment. The market for our customers’ sensor hardware is competitive and under price pressure, but the algorithm software for ultrasonic and anti-spoof has better margins.

A few highlights:

• The security situation and technological developments are generating opportunities, and there are generally high levels of interest and many ongoing business discussions.
• One area of particular interest is National ID Programs. New, stricter security requirements are being established to reduce the risk of fraud, manipulation, and various forms of attack. Precise's anti-spoof solution BioLive fits in well here, and it is already integrated in biometric readers that are certified for the updated Aadhaar requirements. There are some very interesting things happening in this area, but this also involves large government agency projects with long processes.
• Successful marketing of Palm, including activities at ISC West in Las Vegas and IFSEC Korea in Seoul. The company is seeing a high level of interest in both palm as a modality and the various solutions presented during meetings with stakeholders, including multi-factor authentication (MFA) for physical access.

Precise is constantly taking new steps in terms of functionality and performance in its biometric platform suite. One specific example is the new packaging of the BioLive anti-spoof solution, where both AI technology and services in the form of data collection are important components.

Digital Identity
Precise has a strong offering in the field of visitor management systems and physical access. The company grows its customer base through both new customers and additional sales to existing customers.

The offering for the Precise Visit by EastCoast visitor management system (formerly EastCoast Visit in Sweden and YOUNiQ Visit internationally) is growing and expanding internationally, while also being enhanced with new functionality.

The first month of the year was weak, which is normal, but towards the end of the period there was strong growth, and during the quarter new and updated agreements were signed with, among others, Atlas Copco, Certego Norge, the City of Helsingborg, Norstedts, SJ Stockholms Tåg and Tradera. The company has also seen its solutions implemented in new geographical markets such as Germany and Latvia.

The visitor management system initiative is being affected in the short term by higher churn, as a result of the change in strategy that involved an investment in a scalable cloud and SaaS solution. Some customers with legacy on-premise solutions are choosing not to renew their agreements. The main reason is that they no longer see any need for a visitor management system. A small number of customers also requesting special functionality that is not available in the cloud solution. Even if this means a temporary cut in the ARR stock, Precise and its management are convinced that building a more uniform and scalable cloud business is the right decision in the medium to long term. Management also believes that this negative impact will be short-term. Evidence of this is provided by strong new sales of our cloud solution, the fact that no cloud customers left during the quarter and the positive trend that can be seen in connection with framework agreements with large corporate groups.

Sales of Precise Access did not meet expectations during the quarter, mainly due to economic uncertainty in the world at large and uncertainty about GDPR and similar regulations. But interest in the solution remains greater than ever, given the situation in the world and the opportunities offered by the product. There has been a particularly high level of interest in hand modality, which was evident at the ISC West security trade event in Las Vegas. The product was on display at the Genetec booth during the event.

A few highlights:

• Precise Visit by EastCoast is growing internationally, with new customers in Asia, the USA and Europe. At the same time, Precise has launched an initiative in Norway.
• More public sector players are using Precise solutions.
• An on-premise version of Precise Access was launched in order to better meet the increased security requirements from users, including high-security companies.

Product roadmap
Several new functions have been launched, including Agreement Signature, where links can be created between the visitor management system and confidentiality agreements.

Read the full Q1 report here