Welcome!

.NET Authors: Srinivasan Sundara Rajan, Adine Deford, David Fletcher, Pat Romanski, Tad Anderson

News Feed Item

BIO-key(R) International, Inc. Reports First Quarter 2014 Financial Results

Expects Sustained Growth in Second Quarter

WALL, NJ -- (Marketwired) -- 05/01/14 -- BIO-key International, Inc. (OTCQB: BKYI), a leader in fingerprint biometric identification technologies, cloud-based mobile credentialing and identity verification solutions, today reported solid financial results for the first quarter of 2014, including positive guidance for Q2, 2014.

Three Month Comparisons

Total revenue for the three months ended March 31, 2014 was $1.37 million compared to Q1'13 revenue of $805,000, an increase of approximately 70%. Sales grew as a result of higher license sales. "During the quarter, we signed our first OEM agreement to supply our WEB-key client and matching algorithm to fingerprint sensor manufacturers for the mobile device vertical," stated Michael DePasquale, BIO-key Chairman and CEO. "Our topline revenue was at the high end of our guidance and we expect to continue to grow the business in 2014. We are finding a receptive audience in identity access management channels and with more market reports describing mediocre fingerprint sensor performance in the mobile field, demand for our superior algorithm and scalable, flexible solution is growing."

Q1'14 gross margin increased to 91% from 85% in Q1'13. Operating expenses for Q1'14 increased 35%, year over year, to $1,344,000 from approximately $995,000 in Q1'13. Net loss for Q1'14 was ($299,000) as compared to Q1'13 net loss of ($316,000). The net loss in both periods is less than ($0.01) per share. The Q1 '14 loss includes non-cash expenses of $304,380, for fair-value adjustments, option issuance costs, and depreciation and amortization. Mr. DePasquale continued, "We met our topline goals for Q1, but missed the bottom line after investing in additional development projects and higher than expected non-cash expenses mostly related to outstanding warrants."

Liquidity and Capital Resources

The Company reported cash, cash equivalents, and accounts receivables of $1.9 million as of March 31, 2014, as compared to $2.3 million at December 31, 2013. BIO-key has no debt and shareholder equity of $730,000. Mr. DePasquale concluded, "We are off to a good start for 2014 and expect this momentum to continue into the second quarter. As we mentioned during the last call, we are interested in incremental sales hires, along with potential additions to our engineering staff, in that order. We anticipate that the market will continue to evolve towards BIO-key and drive growing demand for our products."

Highlights from the first quarter included:

  • Addition of new hospital customer Covenant Health Systems, named among the top 100 integrated health systems in the country. The organization is comprised of seven acute care hospitals; inpatient and outpatient cancer, behavioral and rehabilitation centers; home health; outpatient surgery and diagnostic centers and physician offices throughout Tennessee.

  • Entered into a license agreement with IDEX and will collaborate to deliver a sensor-to-server infrastructure solution for trustworthy, yet simple and low-cost, in device and online authentication for consumer applications and in particular the smartphone, tablet, and PC markets.

  • Introduced and demonstrated along with InterDigital a groundbreaking multifactor authentication (MFAS) solution, incorporating BIO-key's fingerprint technology for the Android mobile platform at Mobile World Congress 2014 in Barcelona, Spain.

  • Jim Skidmore III joined BIO-key as Senior Vice President Global Sales & Channel Development. Jim joins us with more than 20 years of successful identity and access management partner channel sales development experience.

  • Signed channel agreements with 10 leading Identity & Access Management (IAM) technology resellers and VARs.

2014 Second Quarter Outlook

For the Second Quarter of 2014, the Company expects revenue between $1.0 million and $1.7 million. Gross margin is expected to exceed 85%. The Company expects to generate operating income with incremental revenue above the midpoint of the guidance range. Further, the Company expects to exit the second quarter with a modest sales backlog. The pipeline value was approximately $15 million at the beginning of the quarter and currently remains at approximately $15 million.

Conference Call and Webcast

In conjunction with this release, BIO-key has scheduled a conference call, which will be broadcast live over the Internet on Thursday, May 1, 2014 at 10:00 a.m. Eastern Daylight Time. Participate live via phone by dialing 1-877-317-6789 (U.S.) 1-412-317-6789 (International) and asking for the BIO-key Call at least 10 minutes prior to the start time. Or join the call live over the Internet by logging on to the web address http://www.bio-key.com. A streaming audio replay of the webcast will be available shortly after the call on www.bio-key.com for a period of thirty days. You can also access the recorded call by dialing 1-877-344-7529 and using access code 10045178 International callers should dial 1-412-317-0088 and use the same access code.



                 BIO-KEY International, Inc. and Subsidiary
                   CONDENSED CONSOLIDATED BALANCE SHEETS

                                                   March 31,   December 31,
                                                     2014          2013
                                                 ------------  ------------
                                                  (Unaudited)
                     ASSETS
Cash and cash equivalents                        $    592,921  $  2,023,349
Accounts receivable, net of allowance for
 doubtful accounts of $20,526 at March 31, 2014
 and December 31, 2013                              1,345,961       284,025
Due from factor                                        10,560         2,449
Inventory                                               8,947         9,376
Prepaid expenses and other                             86,433        73,482
                                                 ------------  ------------
  Total current assets                              2,044,822     2,392,681
                                                 ------------  ------------
Equipment and leasehold improvements, net             118,603       125,062
Deposits and other assets                               8,712         8,712
Intangible assets--less accumulated amortization      171,549       174,950
                                                 ------------  ------------
  Total non-current assets                            298,864       308,724
                                                 ------------  ------------
TOTAL ASSETS                                     $  2,343,686  $  2,701,405
                                                 ============  ============

                   LIABILITIES
Accounts payable                                 $    323,842  $    540,912
Accrued liabilities                                   336,447       338,321
Deferred revenue                                      547,878       528,160
                                                 ------------
  Total current liabilities                         1,208,167     1,407,393
                                                 ------------  ------------
Warrant liabilities                                   405,428       243,077
                                                 ------------  ------------
TOTAL LIABILITIES                                $  1,613,595  $  1,650,470
                                                 ============  ============


              STOCKHOLDERS' EQUITY:
Common stock -- authorized, 170,000,000 shares;
 issued and outstanding; 115,995,974 of $.0001
 par value at March 31, 2014 and 115,842,315
 December 31, 2013                                     11,599        11,584
Additional paid-in capital                         55,888,278    55,909,923
Accumulated deficit                               (55,169,786)  (54,870,572)
                                                 ------------  ------------
TOTAL STOCKHOLDERS' EQUITY                            730,091     1,050,935
                                                 ------------  ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $  2,343,686  $  2,701,405
                                                 ============  ============



                CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                (Unaudited)

                                                     Three months ended
                                                          March 31,
                                                 --------------------------
                                                     2014          2013
                                                 ------------  ------------

Revenues
  Services                                       $    249,232  $    276,960
    License fees and other                          1,118,291       527,683
                                                 ------------  ------------
                                                    1,367,523       804,643
Costs and other expenses
    Cost of services                                   39,175        40,715
    Cost of license fees and other                     78,049        77,098
                                                 ------------  ------------
                                                      117,224       117,813
Gross Profit                                        1,250,299       686,830
                                                 ------------  ------------

Operating Expenses
    Selling, general and administrative               856,997       732,076
    Research, development and engineering             486,567       262,809

Total Operating Expenses                            1,343,654       994,885
                                                 ------------  ------------
Operating loss                                        (93,355)     (308,055)
Other expenses
    Interest income                                         2        (7,524)
    Loss on derivative liabilities                   (204,948)            -
    Income taxes                                         (912)            -
                                                 ------------  ------------
  Total Other expenses                               (205,858)       (7,524)
                                                 ------------  ------------
Net (loss) income                                $   (299,213) $   (315,579)
                                                 ============  ============

  Basic (Loss) Income per Common Share           $          *  $          *
  Diluted (Loss) Income per Common Share         $          *  $          *
  * Represents less than ($0.01)

Weighted Average Shares Outstanding:
  Basic and diluted                               115,876,461    81,465,289


About BIO-key
BIO-key International, Inc., headquartered in Wall, New Jersey, develops and delivers advanced identification solutions to commercial and government enterprises, integrators, and custom application developers. BIO-key's award winning, high performance, scalable, cost-effective and easy-to-deploy biometric finger identification technology accurately identifies and authenticates users of wireless and enterprise applications. Our solutions are used in local embedded OEM products as well as some of the world's largest identification deployments to improve security, guarantee identity, and help reduce identity theft. BIO-key's technology is offered directly or by market leading partners around the world. (http://www.bio-key.com)

BIO-key Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the "Act"). The words "estimate," "project," "intends," "expects," "anticipates," "believes" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Act. These statements are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of these statements. These risks and uncertainties include, without limitation, our history of losses and limited revenue, our ability to develop new products and evolve existing ones, wider market acceptance of biometric technologies, our ability to raise additional financing, and our ability to attract and retain key personnel. For a more complete description of these and other risk factors that may affect the future performance of BIO-key International, Inc., see "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2013 and its other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to disclose any revision to these forward-looking statements whether to reflect events or circumstances after the date hereof or otherwise.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Nigeria has the largest economy in Africa, at more than US$500 billion, and ranks 23rd in the world. A recent re-evaluation of Nigeria's true economic size doubled the previous estimate, and brought it well ahead of South Africa, which is a member (unlike Nigeria) of the G20 club for political as well as economic reasons. Nigeria's economy can be said to be quite diverse from one point of view, but heavily dependent on oil and gas at the same time. Oil and natural gas account for about 15% of Nigera's overall economy, but traditionally represent more than 90% of the country's exports and as...
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
"At our booth we are showing how to provide trust in the Internet of Things. Trust is where everything starts to become secure and trustworthy. Now with the scaling of the Internet of Things it becomes an interesting question – I've heard numbers from 200 billion devices next year up to a trillion in the next 10 to 15 years," explained Johannes Lintzen, Vice President of Sales at Utimaco, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"For over 25 years we have been working with a lot of enterprise customers and we have seen how companies create applications. And now that we have moved to cloud computing, mobile, social and the Internet of Things, we see that the market needs a new way of creating applications," stated Jesse Shiah, CEO, President and Co-Founder of AgilePoint Inc., in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal Systems Group, discussed how key attributes of mobile technology – touch input, sensors, social, and ...