Good morning, ladies and gentlemen, and thank you for standing by. Welcome to today's Q1 twenty nineteen Report Conference Call. At this time, all participants are in a listen only mode. There will be a presentation followed by a question and answer session. I must advise you that this conference is being recorded today, Wednesday, 05/15/2019.
I would now like to turn the conference over to your speaker today, Christian Fredrickson. Please go ahead, sir.
Yes. Good morning, everyone, and welcome to the call. As usual, I need to begin by giving the main highlights of the quarter as well as an update on the business before Per will go more our CFO, will go more into the financials. So we reported sales of SEK $343,000,000, which is 18% higher than in the same quarter last year. Order inflow has been quite strong even though Q1 is generally a seasonally weak quarter for us and for the mobile phone industry.
And the order info has continued well also into the beginning of Q2. We also saw strong sales from our embedded area, particularly in door locks, where Fingerprint's position is strong. So our revenues also from new areas continued to increase in the first quarter. Looking at the gross margin, it improved by eight percentage points compared to the same period last year. And we also saw a slight improvement compared to the previous quarter.
Still, the 23% gross margin we reported is not satisfactory. We have work to do here. Profitability was impacted by the fact that low margin products from our inventory accounted for a relatively large share of sales this quarter. This is also positive in a way since our inventory has now come down to more acceptable levels. Also, the introduction of the latest fingerprint sensor generation at our OEM customers is in good progress, although it has taken a bit more time than initially expected to go into all the different versions of that product.
We should be able to deliver higher profitability, and I expect that the positive impact on margins of the sensor generation shift will continue going in this year. Also, we plan to further sharpen our offering in cost effective capacitive sensors by launching a new sensor generation based on FPC1511 later this year. Basically, these sensors will be even smaller and therefore more cost effective, but with high biometric performance. We continue to innovate also still in capacity. They will also have the potential to expand our addressable market by enabling the fingerprint sensors to be included in the low end smartphone models in mobile business.
Next slide, please. Looking at market launches and business development activities. 11 smartphones equipped with our sensors were launched in the quarter by five OEM customers. If we look at the global smartphone market, it declined by about 4% compared to Q1 last year. There seems to be signs that some of the shipments are stabilizing, although we do not know what impact the possible trade war will have in the consumer behavior.
If we look at how Fingerprint's key clients in the smartphone industry are doing, we see a little bit different picture. Our customer base has increased their market share despite the challenges in the mobile phone market. Clearly, the mobile phone replacement cycle is getting longer in Asia, and this has been seen in the decline, as I just said, in the overall volumes. It seems that Asia and China is coming closer to the European and U. S.
Replacement cycles, which are a bit longer. We did well in the quarter and have increased our volumes even despite the ASP decline. In our capacitive sensors, the situation is now more stable, and we can see even a slight market share increase continuously in our business. Looking at the smart cards business, Our biometric technology is featured in a new all in one card by Fethion. The card combines multiple security technologies and has a built in fingerprint sensor from fingerprints, enabling easy and security identification.
We also celebrated an important accomplishment in the smart card area during Q1. In February, we signed a partnership agreement with Gemalto and secured the world's first volume order for biometric sensors for dual interface payment card. This initial order is for a few 100,000 sensors to be delivered during 2019 and 2020. Will offer biometric EMV payment cards to its bank customers using our T shaped sensor. Gemalto is also licensing Fingerprint's recently launched biometric software platform for payments.
This platform has been tailored to optimize the performance of our small and power efficient biometric sensors for payment, which includes the FPC 1,300 series and a T shaped module. We can now offer card and device makers a complete hardware and software solution to secure biometric authentication and maximize the user experience and convenience as well as once again security. This solution is already being tested in two new market trials of dual interface biometric payment cards by RBS, the Royal Bank of Scotland and NatWest in The UK. The bar card for both trial is provided by Gemalto and is using Fingerprint's P shape sensor module together with our software platform for payments. These two market trials announced in April bring the total number of dual interface biometric payment card trials in the world to 19, and Fingerprint's technology has been used in all 19 of them.
Next slide, please. We continue to make good progress step by step against our strategic priorities in Q1. And important priority is to continue defending and leveraging our position of strength in the smartphone segment as the mobile phone industry continues to evolve. In February, we could tell you about the launch of our first in display sensor based on our optical technology. This new SPC sixteen ten sensor brings superior image quality, which also means higher biometric performance.
It is a second generation of optical sensors. In addition, it features a very slim form factor, enabling the sensor to be placed between the battery and the display. This gives our customers more design freedom without impacting the thickness or battery size of the device. This FPC1610 is currently being tested by our OEM customers, and the feedback so far has been good. I'm pleased that the project is progressing according to plan.
If we look at the capacitive sensors, we continue to see good volume development for our new fourth generation sensor with strong volumes in Q1. This cost effective product, the FPC1511, will be an important part of our capacitive sensor portfolio going forward. But we are also taking the next step by developing a new sensor generation based on FPC1511, which will be even smaller and thus more cost effective. These sensors will have the potential to expand our addressable market by making it possible to include fingerprint sensor speed and in the lowest end smartphone models. An equally important area of focus for us is to position fingerprints for future growth in new markets, and we saw very positive progress in Q1.
I have already mentioned the fact that we received the world's first volume order for biometric sensors and software for dual interface payment cards. This initial order for a few 100,000 sensors to be delivered during 2019 and 2020. While this order is not in itself financially significant in relation to fingerprint's total revenues, the fact that this is the first volume order in the biometric smart card industry strengthens our view that the global market for biometric payment card is about to take off, even if 2019 will still see modest numbers in smart cards. I'm also happy to report that sales in our embedded area were good in Q1, not at least in the door lock area, where our position is strong. Next slide, please.
As a company, this month, we reached a major milestone. Since the company started, we have now delivered 1,000,000,000 sensors. We are proud of the central role we have played in bringing fingerprint sensors to the mass market. Having led major advancements to the technology, Fingerprint was responsible for driving the first integration of Fingerprint Touch sensor into an Android handset in 2014. Our sensors are now integrated into more than three thirty smartphone models globally.
Fingerprint Biomix has already replaced the PINs and passwords on smartphones. And as devices devisify, our expertise will also bring trust to a range of new next generation form factors, cutting across a variety of applications, including access control, smart cards and IoT. We believe this is just the beginning, just the first billion. We are continuing to invest in hardware, software and algorithms, and we are continuing to drive new innovative solutions to market while increasing performance and enhancing the user experience, as I've just explained with some of the new launches. As applications continue to rise and new technologies emerge, we are, as a company, committed to realizing our vision of truly seamless all in security, where you, as an individual, are key to everything.
It is interesting to note that today, with this one over 1,000,000,000 sensors delivered, consumers interact and touch our products more than 120 times every second, and we deliver more than seven sensors every second. Next slide, please. Before I hand over to our CFO, Pas Sundquist, let me summarize the key points. I am very happy about the launch of our first in display sensors, which signifies that we are now entering into the highest growth segment in smartphone area. In display sensors, were introduced in 2008 02/2018, are going to overtake the battery sensors in market value, in terms of value already in 2000 during 02/2019.
Our goal is to capture a considerable portion of this market, and the project is proceeding according to plan. And the FPC sixteen ten sensor is now currently ongoing test with our OEM customers, and the response to date has been positive. If we look at the capacitive sensor business, which accounts for the bulk of our revenues, we are also making very good progress. The positive volume trend for our latest generation sensor continued. The shift to this new generation of more cost effective sensors will continue during Q2 and into the year.
And we expect, as I said, that this will contribute to an improved profitability. I am very pleased that we are still innovating also in capacitive, and we are further bringing out a new sensor based on the FPC1511 already later this year, which will be able to expand overall market with capacitive sensors. We also saw good growth in the quarter outside of mobile. So I'm very pleased to see that progress continuing. As we have said it many times, we believe that biometric smart cards will be a key area of growth for us in the coming years.
And we had some encouraging news in Q1 with the Gemalto deal, which gives us confidence that this is moving. But we can see that across the trials and all the banks and schemes in the world. In summary, I'm very pleased that after a tough year, we have stabilized our business. We show growth again in volumes and business. Our cost structure is now very different than last year, and we are very competitive.
We have a lot to do. We are not satisfied with our margins, but we are back to innovating and launching new products with a positive trend in the gross margin and more stable finances. With that, I'd like to hand over to CFO, Paak. Go ahead.
Thank you, Christian, and good morning, everyone. Let me now take you through the financial results for the first quarter. Our revenue came in at €343,000,000 which is an increase of 18% compared to the same period last year. Our order inflow was strong, and this has continued into the beginning of Q2. Our gross margin also improved from 15% last year to 23%.
However, the gross margin should be higher than this, as Christian mentioned earlier. We expect to see a positive impact on profitability of the sensor generation shift continuing into Q2. We reported an operating profit of negative $2,000,000 which should be compared to a negative of $175,000,000 in the same period last year. Next slide, please. And as Christian pointed out, we've just gone through a very tough year, a year in which we took down our costs by two thirds.
At the same time, we've managed to keep our focus on innovation and product development, which should be evidenced by the launch of our first in display sensor as well as our latest generation of cost effective capacitive sensors. And if we look at the development on a rolling twelve month basis, as shown in the diagram of this slide, we can see a positive trend shift both in terms of revenue as well as margin. Next slide, please. On this chart, in particular, you can clearly see the dramatic change in the cost structure that has occurred in the last quarter. Excluding our other operating income and expenses, our operating expenses for the fourth quarter totaled €81,000,000 which should be compared to €218,000,000 for the same quarter last year and €117,000,000 last quarter.
It should also be mentioned that the €218,000,000 in OpEx in Q1 last year included €40,000,000 in restructuring costs, which are excluded in this diagram on this particular slide. Moving our focus on development costs, that is and landed at EUR 21,000,000 that were capitalized during the third quarter, which corresponds to around 47% of our total development costs versus 30% in Q1 twenty eighteen and 19% in Q4 twenty eighteen. In relation to revenues, our operating expenses represented some 23% compared to around 61% in Q1 last year, still excluding the EUR 40,000,000 in restructuring costs that we recorded in that quarter. Next slide, please. Our working capital was $322,000,000 at the end of the quarter, which should be compared with the EUR $592,000,000 in the same period last year.
The increase in working capital compared to the previous quarter is partly a result of increased receivables due to a positive sales trend. Next slide, please. Our cash flow from operating activities was a negative SEK 165,000,000 in the first quarter compared to negative SEK $2.00 4,000,000 in Q1 last year. But as you can see on this slide, the development of cash follows a similar seasonal pattern as last year. The cash flow from investing activities was a negative $43,000,000 which should be compared to a negative 57,000,000 in the same period last year.
Capitalized development expenditure accounted for a negative $21,400,000 compared to negative 36,200,000.0 last year. And also, the final payment of the withheld purchase consideration for Delta ID accounted for an expense of EUR 21,000,000. Next slide, please. The negative cash flow in the quarter is due to seasonal effects concerning accounts payable as well as some large delayed receivables. These receivables were settled already during the April.
So if you look at the cash position since the end of the quarter and the change therein, it has increased by EUR 108,000,000 since March 31, and it's now amounting to SEK $446,000,000 as per Friday of May ten. So to summarize, we see a positive trend shift in terms of revenue and gross margin. The order inflow continued to trend favorably at the beginning of Q2. And the shift to our fourth generation capacitive sensors continued in Q2 with a positive impact on the gross margin. And if you look at then the cost structure, we have reached our targeted OpEx on an annual basis run rate of less than €400,000,000 So finally, our EBITDA continued to improve, and our financial position is strong.
Thank you, everyone, and we're now ready to take questions.
We have had some questions come through. The first question on the phone line comes from the line of Francois Pervigines. I
have a couple, if I may. So the first one is on your top line. So if we look at your performance, you delivered a growth of 18% year over year. So if we look at constant currency, I know currency had a significant impact year over year. So if I exclude the currency, constant currency, you grew 5%.
What I'm trying to understand is if you look at Q1, you had 11 devices launched with five customers, and this is compared to 17 device launched last year in Q1 and seven customers. If we assume so you have lower devices launched versus last year. And if we assume ASP lower versus last year, which is consistent with your comments, how do you manage to get 5% growth year over year at constant currency? I'm just trying to understand this.
Yes, I suppose. Hi, Francois. I think the top line growth, of course, it was a weak quarter in the whole industry last year as a comparison. But I think it's very clear that we had very good performance from the new Sensor fifteen ten family, which is taking off well. So I and that has helped us.
So as I said there, I think our market share is moving positively for us. At the same time, even if the mobile phone industry was in decline, it declined 5% roughly 5% from 2018 in 2018 from 2017, and it continued decline roughly 4% in Q1 twenty nineteen versus Q1 twenty eighteen. Despite the mobile phone volume decline overall in the market, there is the fact that our customers are doing relatively better. So our Asian customers are doing relatively better in that market. So they have gained market share.
And also, the fingerprint sensor penetration has continued in the mobile phone industry. So I think that those kind of three effects explain why we grew revenues despite the declining market and in capacitive sensors and also despite the ASP decline. So obviously, our volumes have volume development has been very good in Q1.
So you had lower devices launches, but those models have been more successful than last year, basically. But still, the number of launches lower than last year in Q1. Is that right?
Exactly. And that tells you also that it's really a question of which customer launches are out and which customers are doing well in the market and how you are positioning your own market share also.
Of course. And, yes, there is a discussion on that. I mean, at the moment in the market. So all Huawei exposed companies has performed particularly well in Q1, Q2. And the discussion is around the trade war.
So it looks like Huawei putting a lot of inventory ahead of the trade war deal just to make sure that they are on track for H2 and there is no issue for trade war. Do you share this comment saying that Huawei has been very aggressive to build up inventories in H1. Are you the risk for you?
I want to comment on that. Of course, we cannot comment on what the customer inventory buildup is. I think we have cautious we have learned a lot. We have just now gotten our inventory to an acceptable level again. So I think there is a big cautiousness in the industry in itself to build inventory actually.
There is a very I think there are a lot of companies that burn themselves and still remember that. So I don't see ourselves kind of building any inventory. Rather, we are very tight on it, right? And it is rather so that, that is a painsteen in the channel. I think they so I can't comment then on Huawei and their own inventory situation, right, that I couldn't do.
I think on trade war, you are right in the sense that, obviously, a trade war cannot have positive impact on anything that happens globally or anything that happens with the consumer. So we're, of course, following that cautiously on what will be any war impact into the consumer behavior. We haven't seen that yet, any behavioral change of any kind. Just the normal replacement cycles have gotten longer in Asia. They have gone closer to what it is in Europe and U.
S. And the Western world, right, the replacement cycle. So that shows why the volumes have declined in the whole mobile industry. But clearly, the trade war, if it continues and gets worse, I'm sure it will have some and must have some impact on consumer behavior going forward.
Okay. The second question I had is on your capitalized R and D and OpEx. So your capitalized R and D has been very volatile the last few quarters. Can you update us on what we should model for capitalized R and D? I mean, increased significantly quarter on quarter.
I just wanted to get a sense of how we should model it going forward.
I'm sorry, Franco. That would mean that we gave you a forecast, and I'm sorry we don't do that. I can't give you any guidance on that one. Sorry.
Okay. Okay. Fair enough. On OpEx, I mean, OpEx has been very, I mean, tightly controlled. I mean, quarter, I see that the number of employees as well continued to decrease in Q1 versus December.
So should we think as Q1 as a run rate or further cost control?
Yes. I think we said that we will be below 400,000,000 for the year. Now we are, as you said yourself, we're clearly below that looking at the Q1. So we don't I've said it before as well, we have had a really forceful movement in terms of cutting our cost base to make us competitive also in
that
perspective. We have no ambition to cut ourselves to victory. We realize that, that's not going to make us great. We need to innovate and run new products, which we are doing. And so I think this cost base is good for us right now, I would say.
You can never say anything else than that. But yes, I think that that's a good base to be on, below €400,000,000 as we have promised.
Having said that, of course, this will put us in a very good position to make a profit at the level we are at right now. But we will, of course, continuously drive efficiencies in the organization and continuously do what we can to improve the cost base. So we will always do what's necessary in order to be able to act quickly and keep our competitiveness. That's something we monitor on a daily basis, being it cash or in the form of expenditures or being it in
the form of working capital or anything else. Yes. And of course, we also need to put a lot of effort and as we have always done, but even more also on driving COGS for us, right? With increasing volumes, we have to kind of take those benefits as well into the chain.
Okay. And last one for me, if I may. The in display, so you mentioned that you will in the release that you will you intend to capture considerable part of the market. Just wanted to clarify, is it medium term? Or do you mean as well this year?
We will launch it this year. So I think that will happen only when you get into next year, of course. But yes, we are still on track, and the project is progressing as planned. And I'm very pleased with that. Yes, on the kind of midterm, that's what we want to do.
And optical will be launched this year. That's the ambition for us.
Yeah. So should we expect a considerable as well market share this year? That should be just No.
We don't wanna comment yet. First first, we wanna get out with it, get into mobile phones. We're in those tests and pilots now. And when you get to that and into launches, then you can start talking market shares.
So that's it for me. Thank you very much.
Okay. Thanks, Francois.
Thank you. Your next question comes from the line of Jurgen Wetterberg. Please go ahead. Your line is now open.
Yes. Good morning, Christian and Per. Thank you for taking my call. If I can start with the new sensor, FPC1511. You've said that your margins were hit by a lower larger portion of low margin sensors and the capacitive sensors.
What is the mix between the older sensors and the FPC1511 right now? And how do you see that evolving going forward? Do you still have a large part
of older sensors in inventory that you need to sell or potentially write off that could further burgeon the margins? Thank you.
Yes. So I think the as you could see, think our inventory has now come down to more acceptable levels. And so I'm pleased that we kind of sold out from the inventory. We still have some to do there, but it's really been in so now as I said, it's an acceptable level where you should be as an industry, right? We don't give out which the mix effect is, but there is still a way to go.
And we, of course, don't have only fifteen eleven, but we will have to deliver also other sensors. And those are kind of also so that we need to produce them as well now, actually. So it's not only an inventory to do that.
I might add that if you compare to last year, when we took a fairly large hit of a noncash inventory write down of $3.00 $5,000,000 in Q2 last year, That corresponded to over 40% of the inventory value at that point. So that sort of may justify a lot of the situations that might have occurred in our inventory. And on the risk of further impairment, all I can say is that we continuously do these checks and balances every month to see where we can and what we can do. But as Christian mentioned today, we are in a good balance.
Okay, great. And also, I'd like to congratulate you on reaching 1,000,000,000 sensors. That's an astonishing number. Do you see the capacitive sensor volumes growing from here? Or have we reached a peak transitioning into touchless and in display from here?
What's your view on the market?
I think the on capacity in mobile, yes, I think the peak happened already when it comes to the volumes for capacity in mobile. It is still going to be very strong volumes in mobile, and it seems to be going even even even low more low end phones. There's a lot of midget phones. So it will continue to be very strong volumes, but it has been decreasing. When I look at the capacity volumes overall, expect them to be growing, of course, globally when we look at other technologies and other segments such as the smart card and the embedded area.
So I think that that's maybe the answer to it. Yes. And the optical volumes are still clearly much, much smaller than the capacity volumes. There is but there is more value in them per sensor, if you may. That's maybe our Okay.
Great. And maybe my last question is you achieved the over 10% revenues from outside mobile capacitive sensors. What's that number now? And do you have any new targets that you're aiming for? And could you talk a little bit about what's biggest, what's growing most in the mix outside of mobile?
Thank you.
Yes, thanks. I think it showed that at least over 10% of our revenues, And we haven't given out a new number. We'll have to see where we actually when we look at it, we use that as a yearly basis. So I expect it to be over 10% this year. And that industry includes everything else, right, from it is includes the iris in different terminal payment terminals in some border control cases.
It includes the whole embedded area, of course, with fingerprint sensors going through hundreds of different devices now. And and and it is also in the in the volumes designed the millions. For me for example, the biggest probably is the door locks, the Chinese door locks, which is now expanding into other markets as well when it comes to the fingerprint sensors in door locks and and then also access control, for example. I think those are maybe the and different payment devices and terminals. So those are are and later on, we can see then the car industry, the airline industry.
Also looking both at at the fingerprint sensors as well as iris and a combination of iris and face, that's maybe on that kind of above 10%, the summary of it.
Okay. Thank you very much, Krista. That was all for me.
Thank you.
Thank you. We have one further question on the comes from Victor Wesson. Please go ahead. Your line is now open.
Thank you, and good morning. If we talk a little bit about smart cards, where are we in terms of the certification? Are we still on track for June? And and in in relation to that, you know, since smart cards are taking so long time, how do you see the risk for the market going more towards mobile solution?
Yes, okay. I suppose on the certification, it's not in our hands. So cannot can't kind of control that part. But I think in this European summertime, that is still a target of the schemes to go with that. You talked about June.
I think it's in the summer, I would say, right? So we will we're obviously following that cautiously. I think the specs have been set and now they're trying to go into the actual work for the certification, the big schemes. And that's an important milestone, as we discussed before. You're very correct with the question because that kind of implies that then it is okay to start buying, to start launching, to start going into real marketing and sales of this with the banks into the consumer markets.
And when it comes to the how this has taken time, I can only agree we are not controlling that speed as we can do our part of it. We are not the ones who are doing the whole full thing. I think, obviously, it has taken quite a long time for the whole industry. It's clear that fintech industry is taking its time to verify, to check, to pilot, to get the whole large chain to work. But it is, of course, a massive industry once it moves.
We believe very strongly, very clearly, it will move. We don't see any trends of any kind that cards will be growing less and mobile would be eating out on cards. We see both of them growing. Both mobile payments and card payments are growing across the globe. Also, card payments are growing in China, where actually the mobile payments has been the biggest.
The losing out part has been cash. That is losing out big time, I think, across the world at the moment, at least. So so I think that for for many, many, many years, you will have both of those existing, and you will see many other payment methods outside of cash coming in as well. That's at least our belief.
Okay. Great. And on the drop the sequential drop in smartphone sales, I think market was down 13% in total quarter over quarter. But you mentioned you had your customers were better than that and you increased your market shares as well. So your decline of 19%, is that just ASP pressure?
Sorry, what 19%? I'm not
The drop from Q4 in sales.
Yes. Well, I think it's that's more I mean, we have always had a seasonal effect because of the Chinese New Year where we are. So Q1 is always a big drop. If you look at every year backwards as well, Q1 is always a weak quarter for the mobile industry. So that is more if you look at sequentially, if you look at year on year, we actually grew 18%.
Of course, there was currency impact as well. I think that the answer is that, yes, we have gained we are gaining market share in the capacity part. And also, our customer base is making trending better in the decline. I think the mobile phone industry overall decline, we said here earlier, is roughly minus 4% on volume quarter on quarter. So Q1 twenty nineteen versus Q1 twenty eighteen is about minus 4% volume decline.
Even so that tells you roughly what the actual in the mobile. So that other drop is very seasonally typical for Q1.
Okay. And you mentioned the in display sensors becoming the majority of the value in the market. Is this a new assessment from you? Or is it this the same as the one you gave in Q4?
It's the same assessment, yes, that during 2019, when we get into the year value wise. But of course, there is very now the price erosion is also coming into optical very strongly, right? So it will the price levels are coming down there as well, right, as an ASP decline hits there. So I think that is to be expected, of course, when new technology comes in as well. So but it is to say what we said earlier, there is no change in that.
Okay. Got a last question also on the sixteen ten sensor. You mentioned that you had better biometric performance than the competitors there. I guess this is the classic FAR, FRR stuff. Is there is there any other characteristic of the sensor that is better than competition cost or user experience or anything other?
I think you just mentioned them. I think the current optical sensors out there are camera based. They are thicker, more bulky. The performance on corner cases has been far far from good when it comes to dry fingers, when it comes to light conditions. So when we bring in now the second generation of optical, we're coming in with that.
It is thin, so you can actually place it anywhere. You have much much more freedom in in terms of the sensor because it is very slim. So you can place it anywhere, and the battery thickness is is not an issue there, right? So the phone card doesn't get thicker. It is also superior when it comes to security.
We are bringing new security level to the industry. And of course, the performance overall of the sensor when it comes to speed and other performance, corner case performance is improved, so the consumer experience and security is better. That's, of course, what we and that's what we bring with the system knowledge, a combination of software and hardware and how we bring into it.
Great stuff. Thank you so much, Christian and Per.
Yes. Thank you very much.
Thank you. There are no further questions over the phone lines. Please continue.
I think we can take a couple of questions from the web as well. The first one is on cash. What's the reason that cash dropped by some EUR 100,000,000 since Q4? Okay. Well, as we mentioned a little bit earlier around the cash.
First of all, the cash position, have withdrawn. The negative cash flow that we have been reporting is mainly a seasonal effect concerning accounts payable. And if you look in the graph I showed earlier, you can see that the similar pattern emerged last year and has to do with how we order stuff and in the treatment and how we agreed to pay and other things. There is also the fact that we had a very large portion of delayed receivables. The month or the quarter ended on the Friday, and we got some very large payments on the Monday.
So if you then look from then at the March and then also up to where we are right now, we have recouped most of that as per our plan. So we have recouped more than EUR 100,000,000. So we are now at the level of EUR $446,000,000. So we are at a very firm base on the cash flow scenario, and we still are very well prepared for the Q2 volume ramp up that usually comes also on a seasonality basis. But still having said that, we still continue to focus on cost efficiency.
And of course, what I've mentioned here, lot around cash management and cash flow. So okay. Okay. And then there's a follow-up question on the optical sensor. Do you expect it to be competitive also in terms of price?
Yes. I suppose we always have to be competitive in terms of pricing on mobile phone industry. And and, obviously, we want to be we want we want to be competitive. But when it comes to efficiency, security, performance, and in front of the consumers as well, of course, cost efficiency. That that's kind of a given in the mobile phone industry, I think, as as of today.
But we want to focus a lot on with the generation two to bring a lot of good value now into in display sensors.
And lastly, on iris, what is the status in the iris area? When do you expect to see increased revenue from this area?
We haven't reported on iris separately when it comes to revenues. It continues to do well for us. It is clear that the touchless part when it comes to mobile is not it is not going through into outside of Apple when it comes to touchless. I think that's well known in the industry as well. So it is more a lesser part of the market share, clearly both touchless.
The combination we are bringing out the new version of iris, which is combination of iris and face, which will increase the performance and the and the convenience. So it's a it's a combined software with iris and face, which we will bring out this year. And we continue to do very well with iris in the other parts of payment terminals when it comes to different parts of the car industry and the Gentex, of course, but those take time to get into any bigger volumes, obviously. So I think touchless is doing okay. Clearly, it is not becoming a big issue as Apple has done with touchless.
So all the other customers are going more mainly with fingerprint sensors. Touchless is more of a smaller market share in outside of Apple Pay when you look at the whole touches. But it's doing okay. But it's not I don't expect it to become a big volume in mobile. And with that, thank you very much.
I would like everyone to thank you for joining us this morning. And once again, as usual, looking forward to our Q2 report will be published on August 15. With that, I thank you for today, and I wish you a nice day and goodbye for now.
That does conclude our conference for today. Thank you for participating. You may all now disconnect.