Oslo, May 23, 2023 – NEXT Biometrics (Oslo Bors: NEXT), NEXT has today signed a preferred supplier contract with an Asian distributor. The agreement has an estimated contract value between NOK 110 – 250 million over 3 years.
The Asian distributor targets to order volumes for minimum NOK 110 million. Under the contract, NEXT has guaranteed to reserve, for this customer, production capacity of in total NOK 250 million, over the 3-year period.
The Asian distributor has granted NEXT an exclusive preferred supplier contract serving five of the largest and most prestigious fingerprint sensor customers in Asia. The volumes under this contract are for existing products in the market, where NEXT FAP20 sensors will replace present sensor solutions.
“This contract can be the most important to date, in our company history, and will be key in lifting us to profitability. We will deliver our flagship FAP20 product, which has healthy margins”, says NEXT CEO Peter Heuman.
The 3-year contract period will start from first delivery. According to contract, the customer has until year-end 2023 to start taking delivery. However, NEXT expects delivery to start earlier. Most of the five end-customers already know the NEXT FAP20 sensor well and some will soon be ready to take delivery.
The contract cannot be terminated before 3 years. After 3 years, unless then terminated, there is an automatic extension of 2 years, on same terms.
“The fact that we are contractually obliged to be able to deliver a volume that is more than double the targeted minimum volume, demonstrates the size and market reach of our contract partner. With contract extension and full delivery, the contract value surpasses NOK 400 million. This contract, along with strong signals from the market convinces us that we will be able to deliver on our promise of bringing this company to profitability”, says Peter Heuman.
About NEXT Biometrics
NEXT provides advanced fingerprint sensor technology that delivers uncompromised security and accuracy for the best possible user experience in the smart card, government ID, access control and notebook markets. The company’s patented NEXT Active Thermal™ principle allows the development of large, high quality fingerprint sensors in both rigid and flexible formats. NEXT Biometrics Group ASA (www.nextbiometrics.com) is headquartered in Oslo, with sales, support and development operations in Seattle, Taipei, Bengaluru and Shanghai.
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