Click here to close now.

Welcome!

Websphere Authors: Elizabeth White, Plutora Blog, Liz McMillan, Yeshim Deniz, Pat Romanski

News Feed Item

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

First Half 2014 Sales Growth of 44%, Strong Q3 Visibility

WALL, NJ -- (Marketwired) -- 08/13/14 -- BIO-key International, Inc. (OTCQB: BKYI), a leader in fingerprint biometric identification technologies, cloud-based mobile credentialing and identity verification solutions, today reported financial results for the second quarter of 2014, including strong visibility for Q3 2014.

Three Month Comparison

Total revenue for the three months ended June 30, 2014 was $402,788, compared to Q2'13 revenue of $422,257, a decrease of approximately 5%. Sales fell largely as a result of lower license sales and expected orders slipping out beyond Q2. "Despite disappointing Q2 sales, our pipeline continues to grow and our visibility of large opportunities continues to improve," stated Michael DePasquale, BIO-key Chairman and CEO. "In Q1, we reiterated the variable nature of our business and the potential impact to individual quarterly results. Thus, it's important to note that our sales for the first half of 2014 grew 44% year over year and our booked sales, thus far, for Q3'14 have already substantially exceeded total Q3'13 sales. Therefore we remain confident 2014 should represent a breakout year for BIO-key."

Q2'14 gross margin decreased to 60% from 78% in Q2'13. Operating expenses for Q2'14 increased 58%, quarter over quarter, to $1,366,000 from approximately $867,000 in Q2'13. Net loss for Q2'14 was ($1,026,286), which increased from Q2'13 net loss of ($554,831). Q2'14 EPS was ($0.01) versus Q2'13 EPS of ($0.01). Mr. DePasquale continued, "As planned, we invested in sales and marketing, hiring new sales executives and developing new marketing and lead generation programs to grow our pipeline. We hired or contracted engineering resources to support the multitude of new opportunities in our pipeline and we are starting to see the results of these investments and efforts."

Six Month Comparison

Total revenue for the six months ended June 30, 2014 was $1,770,311, compared to the first half of 2013 revenue of $1,226,900, an increase of approximately 44%.

First half 2014 gross margin increased to 84% from 83% in first half 2013. Operating expenses for the first half 2014 increased 45%, year over year, to $2,710,000 from approximately $1,862,000 in the first half 2013. Net loss for the six months ended June 30, 2014 was ($1,325,500), which increased from the first half 2013 net loss of ($870,409). First half 2014 EPS was ($0.01) versus first half 2013 EPS of ($0.01).

Liquidity and Capital Resources

The Company reported cash, cash equivalents, and accounts receivables of $902,578 as of June 30, 2014, as compared to $1.9 million at March 31, 2014. Mr. DePasquale concluded, "With our pipeline growing so quickly, we are supporting more opportunities that we expect to turn into sales. We need to stay the course and will continue to manage our resources as efficiently as possible with higher sales in sight."

Highlights from the second quarter included:

  • Announced collaboration agreement with Experian whereby BIO-key technology will provide fingerprint biometric authentication for Experian's next generation fraud platform, Precise ID.
  • Closed initial partner contract with Caradigm, to provide fingerprint authentication for Paulding County Hospital.
  • Closed initial partner contract with HealthCast, providing fingerprint authentication for Rady's Children's Hospital which is part of the University of California, San Diego School of Medicine.
  • IBM Reseller - iLantis closed their first sales opportunity with White Wave Foods, a consumer food & beverage manufacturer (Land O'Lakes products etc.).
  • Received Purchase Orders from 7 Eye Care Clinics through partner Medflow, we now have 57 customers in this category.
  • Reached agreements with five top-tier IAM channel partner resellers.
  • Continued restructuring and investing in the sales and marketing departments, including the addition of two new sales account managers.
  • Grew the sales opportunity pipeline by over $10M.

2014 Third Quarter Outlook

For the Q3'14, the Company expects revenue between $800,000 and $1.2 million, representing growth of 100%-200% over Q3'13. Gross margin is expected to exceed 85%. The Company expects to generate operating income with incremental revenue above $1.5 million in sales. Further, the Company expects a modest backlog at the end of Q3'14. The twelve-month opportunity pipeline value was approximately $20 million at the beginning of the quarter and is currently approximately $30 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 Wednesday, August 13, 2014 at 10:00 a.m. Eastern Daylight Time. Participate live via phone by dialing 1-877-317-6789 (U.S.) 412-317-6789 (International) and asking for the BIO-key Call at least 10 minutes prior to the start time. 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 (U.S.) 412-317-0088 (International) and using access code 10050818


                 BIO-KEY INTERNATIONAL, INC. AND SUBSIDIARY
                   CONDENSED CONSOLIDATED BALANCE SHEETS

                                                   June 30,    December 31,
                                                     2014          2013
                                                 ------------  ------------
                                                  (Unaudited)
                      ASSETS
Cash and cash equivalents                        $    517,759  $  2,023,349
Accounts receivable, net of allowance for
 doubtful accounts of $20,526 at June 30, 2014
 and December 31, 2013                                384,819       284,025
Due from factor                                        21,127         2,449
Inventory                                              22,249         9,376
Prepaid expenses and other                             74,191        73,482
                                                 ------------  ------------
  Total current assets                              1,020,145     2,392,681
                                                 ------------  ------------
Equipment and leasehold improvements, net             110,547       125,062
Deposits and other assets                               8,712         8,712
Intangible assets--less accumulated amortization      168,147       174,950
                                                 ------------  ------------
  Total non-current assets                            287,406       308,724
                                                 ------------  ------------
TOTAL ASSETS                                     $  1,307,551  $  2,701,405
                                                 ============  ============

                   LIABILITIES
Accounts payable                                 $    352,062  $    540,912
Accrued liabilities                                   377,645       338,321
Deferred revenue                                      505,724       528,160
                                                 ------------  ------------
  Total current liabilities                         1,235,431     1,407,393
                                                 ------------  ------------
Warrant liabilities                                   307,219       243,077
                                                 ------------  ------------
TOTAL LIABILITIES                                   1,542,650     1,650,470
                                                 ------------  ------------

Commitments and contingencies

         STOCKHOLDERS' EQUITY (DEFICIT):
Common stock -- authorized, 170,000,000 shares;
 issued and outstanding; 116,052,320 of $.0001
 par value at June 30, 2014 and 115,842,315 as of
 December 31, 2013                                     11,605        11,584
Additional paid-in capital                         55,949,368    55,909,923
Accumulated deficit                               (56,196,072)  (54,870,572)
                                                 ------------  ------------
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)                 (235,099)    1,050,935
                                                 ------------  ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 (DEFICIT)                                       $  1,307,551  $  2,701,405
                                                 ============  ============

The accompanying notes to the condensed consolidated financial statements are an integral part of these statements.


                 BIO-KEY INTERNATIONAL, INC. AND SUBSIDIARY
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                (Unaudited)

                         Three months ended           Six months ended
                              June 30,                    June 30,
                     --------------------------  --------------------------
                         2014          2013          2014          2013
                     ------------  ------------  ------------  ------------

Revenues
  Services           $    281,711  $    257,452  $    530,942  $    534,412
  License fees and
   other                  121,078       164,805     1,239,369       692,488
                     ------------  ------------  ------------  ------------
                          402,789       422,257     1,770,311     1,226,900
Costs and other
 expenses
  Cost of services        113,105        28,150       152,280        68,864
  Cost of license
   fees and other          48,146        66,815       126,195       143,914
                     ------------  ------------  ------------  ------------
                          161,251        94,965       278,475       212,778
                     ------------  ------------  ------------  ------------
Gross Profit              241,538       327,292     1,491,836     1,014,122
                     ------------  ------------  ------------  ------------

Operating Expenses
  Selling, general
   and administrative     895,147       581,309     1,752,143     1,313,385
  Research,
   development and
   engineering            470,888       286,166       957,545       548,975
                     ------------  ------------  ------------  ------------
                        1,366,035       867,475     2,709,688     1,862,360
                     ------------  ------------  ------------  ------------
    Operating loss     (1,124,497)     (540,183)   (1,217,852)     (848,238)
                     ------------  ------------  ------------  ------------
Other income
 (expenses)
  Interest income
   (expense)                    2       (14,648)            3       (22,171)
  Gain (loss) on
   derivative
   liabilities             98,209             -      (106,739)            -
  Income taxes                  -             -          (912)            -
                     ------------  ------------  ------------  ------------
Total other income
 (expenses)                98,211       (14,648)     (107,648)      (22,171)
                     ------------  ------------  ------------  ------------
    Net loss         $ (1,026,286) $   (554,831) $ (1,325,500) $   (870,409)
                     ============  ============  ============  ============

                     ------------  ------------  ------------  ------------
Basic and Diluted
 Loss per Common
 Share               $      (0.01) $      (0.01) $      (0.01) $      (0.01)
                     ============  ============  ============  ============

Weighted Average
 Shares Outstanding:
  Basic and diluted   116,003,664    87,182,348   115,940,414    84,339,612

The accompanying notes to the condensed consolidated financial statements are an integral part of these statements.

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 and in other public statements by the Company and Company officers include or may contain certain forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. The words "anticipate," "believe," "estimate," "will," "may," "future," "plan," "intend" and "expect" and similar expressions generally identify forward-looking statements. These forward-looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Although we believe that our plans, intentions and expectations reflected in the forward-looking statements are reasonable, we cannot be sure that they will be achieved. Particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: our history of losses and limited revenue; our ability to raise additional capital; our ability to protect our intellectual property; changes in business conditions; changes in our sales strategy and product development plans; changes in the marketplace; continued services of our executive management team; security breaches; competition between us and other companies in the biometric technology industry; market acceptance of biometric products generally and our products under development; delays in the development of products and statements of assumption underlying any of the foregoing, as well as other factors set forth under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2013 filed with the Securities and Exchange Commission. All subsequent written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the foregoing. Except as required by law, we undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Investor & Media Contact:
BIO-key International, Inc.
Jay Meier
Vice President Corporate Development
Phone: 651-789-6116
eMail: Jay.meier@bio-key.com

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
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, June 9-11, 2015, at the Javits Center in New York City. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be
Container frameworks, such as Docker, provide a variety of benefits, including density of deployment across infrastructure, convenience for application developers to push updates with low operational hand-holding, and a fairly well-defined deployment workflow that can be orchestrated. Container frameworks also enable a DevOps approach to application development by cleanly separating concerns between operations and development teams. But running multi-container, multi-server apps with containers is very hard. You have to learn five new and different technologies and best practices (libswarm, sy...
SYS-CON Events announced today that DragonGlass, an enterprise search platform, 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. After eleven years of designing and building custom applications, OpenCrowd has launched DragonGlass, a cloud-based platform that enables the development of search-based applications. These are a new breed of applications that utilize a search index as their backbone for data retrieval. They can easily adapt to new data sets and provide access to both structured and unstruc...
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 ...
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
SYS-CON Events announced today that the "First Containers & Microservices Conference" will take place June 9-11, 2015, at the Javits Center in New York City. The “Second Containers & Microservices Conference” will take place November 3-5, 2015, at Santa Clara Convention Center, Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists will peel away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you'll have no problem fil...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
"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.
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS – software, platform, and infrastructure as a service.
Sensor-enabled things are becoming more commonplace, precursors to a larger and more complex framework that most consider the ultimate promise of the IoT: things connecting, interacting, sharing, storing, and over time perhaps learning and predicting based on habits, behaviors, location, preferences, purchases and more. In his session at @ThingsExpo, Tom Wesselman, Director of Communications Ecosystem Architecture at Plantronics, will examine the still nascent IoT as it is coalescing, including what it is today, what it might ultimately be, the role of wearable tech, and technology gaps stil...
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
The Workspace-as-a-Service (WaaS) market will grow to $6.4B by 2018. In his session at 16th Cloud Expo, Seth Bostock, CEO of IndependenceIT, will begin by walking the audience through the evolution of Workspace as-a-Service, where it is now vs. where it going. To look beyond the desktop we must understand exactly what WaaS is, who the users are, and where it is going in the future. IT departments, ISVs and service providers must look to workflow and automation capabilities to adapt to growing demand and the rapidly changing workspace model.
Since 2008 and for the first time in history, more than half of humans live in urban areas, urging cities to become “smart.” Today, cities can leverage the wide availability of smartphones combined with new technologies such as Beacons or NFC to connect their urban furniture and environment to create citizen-first services that improve transportation, way-finding and information delivery. In her session at @ThingsExpo, Laetitia Gazel-Anthoine, CEO of Connecthings, will focus on successful use cases.
One of the biggest impacts of the Internet of Things is and will continue to be on data; specifically data volume, management and usage. Companies are scrambling to adapt to this new and unpredictable data reality with legacy infrastructure that cannot handle the speed and volume of data. In his session at @ThingsExpo, Don DeLoach, CEO and president of Infobright, will discuss how companies need to rethink their data infrastructure to participate in the IoT, including: Data storage: Understanding the kinds of data: structured, unstructured, big/small? Analytics: What kinds and how responsiv...
Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at home including open source hardware, the raw materials required and the options available to power s...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...