Welcome!

IBM Cloud Authors: Anders Wallgren, Pat Romanski, Flint Brenton, William Schmarzo, Automic Blog

News Feed Item

BIO-key(R) International, Inc. Reports Third Quarter 2012 Financial Results

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.

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 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.

Contacts:
BIO-key International, Inc.
Scott Mahnken
732-359-1113

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
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
SYS-CON Events announced today that iDevices®, the preeminent brand in the connected home industry, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. iDevices, the preeminent brand in the connected home industry, has a growing line of HomeKit-enabled products available at the largest retailers worldwide. Through the “Designed with iDevices” co-development program and its custom-built IoT Cloud Infrastruc...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
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, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
Most people haven’t heard the word, “gamification,” even though they probably, and perhaps unwittingly, participate in it every day. Gamification is “the process of adding games or game-like elements to something (as a task) so as to encourage participation.” Further, gamification is about bringing game mechanics – rules, constructs, processes, and methods – into the real world in an effort to engage people. In his session at @ThingsExpo, Robert Endo, owner and engagement manager of Intrepid D...
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Learn how IoT, cloud, social networks and last but not least, humans, can be integrated into a seamless integration of cooperative organisms both cybernetic and biological. This has been enabled by recent advances in IoT device capabilities, messaging frameworks, presence and collaboration services, where devices can share information and make independent and human assisted decisions based upon social status from other entities. In his session at @ThingsExpo, Michael Heydt, founder of Seamless...
The IoT's basic concept of collecting data from as many sources possible to drive better decision making, create process innovation and realize additional revenue has been in use at large enterprises with deep pockets for decades. So what has changed? In his session at @ThingsExpo, Prasanna Sivaramakrishnan, Solutions Architect at Red Hat, discussed the impact commodity hardware, ubiquitous connectivity, and innovations in open source software are having on the connected universe of people, thi...