Fingerprint Cards Withdraws Dividend as Revenue Plummets
- Shares sink after company projects more than 50% sales drop
- Inventory piles up as demand wanes from electronics makers
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Fingerprint Cards AB, the Swedish maker of biometric ID sensors, said revenue is set to fall more than 50 percent in the first quarter as device manufacturers cut back on orders amid a stubborn inventory backlog.
The shares fell as much as 42 percent as Fingerprint Cards withdrew a proposal to pay its first-ever dividend to shareholders, and said it can no longer give any guidance for 2017, according to a statement Tuesday. Chief Executive Officer Christian Fredrikson said mobile-phone makers who use the company’s sensors overestimated demand and built up large inventories.