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STOCKHOLM, Dec 8 (Reuters) - Biometric technology firm Fingerprint Cards (FPC) FINGb.ST slashed its revenue guidance for 2016, hit by inventory build-ups, softer smartphone volumes and stiffening competition, but forecast sales next year roughly in line with expectations.
The company forecast 2016 revenues of 6.6-6.8 billion Swedish crowns, well below its previous forecast of 7.2-7.5 billion, and said an expected seasonal boost in the fourth quarter had not kicked in, mainly due to earlier inventory build-up throughout the supply chain.
"Shortages of certain other components, which have affected smartphone volumes negatively during the quarter, and increased competition, also had a negative impact on Fingerprint Cards' revenues," the Swedish company said.
"Fingerprint Cards expects that these factors also will impact revenues for the first quarter 2017."
The Gothenburg-based maker of fingerprint sensors, presenting its first outlook for next year, also forecast 2017 revenues of 7.5-9.5 billion crowns ($0.83-$1.05 billion) compared with a ThomsonReuters SmartEstimate of 8.6 billion.
FPC, which competes with the likes of China's Goodix and Silicon Valley-based Synaptics SYNA.O , has been around for nearly two decades, but had its break-through year only in 2015 as demand for fingerprint sensors for smartphones soared.
The company, whose shares have fallen 36 percent this year amid worries over fiercening competition, has said it expects its market share, excluding Apple AAPL.O which makes its own sensors, to peak this year around 60 percent.
FPC guided for an operating margin of at least 35 percent in 2017, lower than its unchanged forecast of about 40 percent for 2016, and compared with the 37.7 percent seen by analysts in Reuters poll ahead of the company's third-quarter report. ($1 = 9.0637 Swedish crowns)