|By Marketwired .||
|November 19, 2012 04:30 PM EST||
WALL, NJ -- (Marketwire) -- 11/19/12 -- BIO-key International, Inc. (OTCBB: BKYI), a global leader in fingerprint biometric identification solutions and advanced mobile identification technology, today reported financial results for the third quarter ending September 30, 2012.
Total revenue for the three months ended September 30, 2012 was approximately $410,000, representing a decrease of 29% from the $574,000 reported for the quarter ended September 30, 2011.
BIO-key's gross margin for the third quarter of 2012 was 76% compared to 63% for the same period in 2011, due to reduced costs associated with the third party hardware revenue. Operating expenses for the third quarter of 2012 decreased 40%, primarily attributable to the decrease of our reserve for doubtful accounts of $300,000 due to partial payments received for a contract whose payments are behind schedule, decreases in R&D contractor expense as well as commission and referral fees related to decreased revenue.
Net loss for the three months ended September 30, 2012 was ($232,609) a 57% improvement over the net loss of ($540,165) for the same period in 2011.
"While not yet reflected in our financials, the third quarter of 2012 included a number of significant accomplishments with key partners," stated Mike DePasquale, CEO. "In healthcare, which is a target industry for our company, BIO-key was featured during the opening ceremony of the Allscripts Client Experience 2012. During his key note address, Glen Tullman the CEO of Allscripts, lauded the BIO-key solution. He also presented BIO-key customer, Holzer Health Systems, whose staff members shared video testimonials about their positive experience using BIO-key technology. The result was a measurable increase in traffic at our booth at the Allscripts conference, leading to the BIO-key sales team reaching agreements with more than ten different hospitals and clinics to conduct Pilot programs."
"Also, during the third quarter, IBM published a 'Redguide' detailing the integration of BIO-key biometrics within the IBM TAM ESSO solution offering. IBM field sales representatives and technical support engineers rely on IBM Redguides to help them identify innovative customer solutions. The guide has already been distributed to thousands of IBMers and can be found by visiting IBM BIO-key Redguide (http://www.redbooks.ibm.com/abstracts/Redp4892.html?Open&cm_sp=MTE23578)," added DePasquale.
Nine Month Comparisons
Total revenue for the nine months ended September 30, 2012 was $2.353 million representing a 21% decrease from the $2.963 million reported for the same period in 2011. The product mix varied for the nine months ended September 30, 2012 as compared to the same period in 2011with a decrease in third party hardware revenue and license revenue, and an increase in service revenue and royalty income.
Gross margin for the nine months ended September 30, 2012 was 82% compared to 79% for the same period in 2011. Operating expenses for 2012 decreased 15% to approximately $2,395,000 compared to $2,829,000 in the same period ended September 30, 2011. The decline in operating expenses was primarily related to lower R&D contractor expenses, commissions, referral fee expenses and a decrease in reserve for doubtful accounts. Operating loss for the nine months ended September 30, 2012 was approximately ($464,000) compared to an operating loss of ($484,000) reported for the same period in 2011.
Net loss for the first nine months of 2012 was approximately ($483,000) compared to net loss of ($894,000) for the same period in 2011. Net loss for the 2011 period included approximately $400,000 in expenses related to derivative and fair value adjustments which are no longer applicable in 2012.
Liquidity and Capital Resources
Consolidated cash, cash equivalents and accounts receivables was approximately $385,000 on September 30, 2012, compared to $630,000 as of December 31, 2011.
Highlights for Q3 2012 included the following:
- Purchase Orders for continued product roll-outs at Robinson Memorial Hospital, McKesson, Davlong, Identimetrics, Life South, MedFlow and LexisNexis.
- IBM produced, promoted and distributed an IBM Redguide "BIO-key Biometric Service Provider for IBM Security Access Manager for Enterprise Single Sign-On."
- Additional order for services from British Columbia Ministry of Labour.
- Attended Allscripts Client Experience (ACE) meeting in August. Secured 10+ Pilot programs with various hospitals and clinics. BIO-key was one of four Allscripts partners featured during the Glen Tullman, CEO, keynote address to open the meeting.
- Launched a new Allscripts demo and training program. BIO-key is providing the Allscripts training engineers and field sales team with biometric product sales training and fingerprint readers. Allscripts is including the BIO-key solution in standard customer demos and new Allscripts sales personnel will be trained on BIO-key technology at the Allscripts training facility located in Atlanta.
- Attended the Epic "by invitation only" User Group Meeting in September 2012. This was a small gathering of healthcare technology provider and leading hospital executives.
DePasquale concluded "We expect our FY 2012 fourth quarter to be our strongest of the year in terms of revenues and profit and for the company to be profitable for the year ending December 31, 2012. With a number of industry changing events taking place over the past 90 days including the purchase of AuthenTec, a fingerprint manufacturer, by Apple, we are experiencing an increase in demand for our product offerings. The partner relationships that we have built in healthcare and in the Identity Access Management space are creating many new international opportunities that we will monetize in the coming quarters."
The company will hold a conference call early December to update investors and other interested parties on our progress and to review a number of strategic initiatives that are underway.
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 may be construed as "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, the impact on our business of the recent financial crisis in the global capital markets and negative global economic trends, 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, 2011 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 also undertakes no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.
BIO-key International, Inc.
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
Jul. 23, 2016 02:30 PM EDT Reads: 1,693
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Jul. 23, 2016 02:15 PM EDT Reads: 607
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
Jul. 23, 2016 01:00 PM EDT Reads: 805
Is your aging software platform suffering from technical debt while the market changes and demands new solutions at a faster clip? It’s a bold move, but you might consider walking away from your core platform and starting fresh. ReadyTalk did exactly that. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue and over a decade of audio conferencing product development to start an innovati...
Jul. 23, 2016 12:00 PM EDT Reads: 808
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, discussed the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filterin...
Jul. 23, 2016 12:00 PM EDT Reads: 1,104
Early adopters of IoT viewed it mainly as a different term for machine-to-machine connectivity or M2M. This is understandable since a prerequisite for any IoT solution is the ability to collect and aggregate device data, which is most often presented in a dashboard. The problem is that viewing data in a dashboard requires a human to interpret the results and take manual action, which doesn’t scale to the needs of IoT.
Jul. 23, 2016 11:00 AM EDT Reads: 1,811
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
Jul. 23, 2016 11:00 AM EDT Reads: 1,136
What does it look like when you have access to cloud infrastructure and platform under the same roof? Let’s talk about the different layers of Technology as a Service: who cares, what runs where, and how does it all fit together. In his session at 18th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, an IBM company, spoke about the picture being painted by IBM Cloud and how the tools being crafted can help fill the gaps in your IT infrastructure.
Jul. 23, 2016 10:45 AM EDT Reads: 1,961
"C2M is our digital transformation and IoT platform. We've had C2M on the market for almost three years now and it has a comprehensive set of functionalities that it brings to the market," explained Mahesh Ramu, Vice President, IoT Strategy and Operations at Plasma, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 23, 2016 10:00 AM EDT Reads: 1,037
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 23, 2016 10:00 AM EDT Reads: 1,909
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Jul. 23, 2016 09:45 AM EDT Reads: 1,730
Traditional IT, great for stable systems of record, is struggling to cope with newer, agile systems of engagement requirements coming straight from the business. In his session at 18th Cloud Expo, William Morrish, General Manager of Product Sales at Interoute, outlined ways of exploiting new architectures to enable both systems and building them to support your existing platforms, with an eye for the future. Technologies such as Docker and the hyper-convergence of computing, networking and sto...
Jul. 23, 2016 09:45 AM EDT Reads: 961
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Jul. 23, 2016 09:15 AM EDT Reads: 1,016
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Jul. 23, 2016 09:00 AM EDT Reads: 1,925
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
Jul. 23, 2016 08:15 AM EDT Reads: 1,443
Much of IT terminology is often misused and misapplied. Modernization and transformation are two such terms. They are often used interchangeably even though they mean different things and have very different connotations. Indeed, it is somewhat safe to assume that in IT any transformative effort is likely to also have a modernizing effect, and thus, we can see these as levels of improvement efforts. However, many businesses are being led to believe if they don’t transform now they risk becoming ...
Jul. 23, 2016 08:00 AM EDT Reads: 1,058
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Jul. 23, 2016 08:00 AM EDT Reads: 1,248
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
Jul. 23, 2016 08:00 AM EDT Reads: 1,400
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Jul. 23, 2016 07:45 AM EDT Reads: 1,052
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Jul. 23, 2016 07:45 AM EDT Reads: 976