Welcome!

Websphere Authors: Yeshim Deniz, Trevor Parsons, Pat Romanski, Carmen Gonzalez, Elizabeth White

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

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...

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...
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
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.
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can't be addressed w...
The Domain Name Service (DNS) is one of the most important components in networking infrastructure, enabling users and services to access applications by translating URLs (names) into IP addresses (numbers). Because every icon and URL and all embedded content on a website requires a DNS lookup loading complex sites necessitates hundreds of DNS queries. In addition, as more internet-enabled ‘Things' get connected, people will rely on DNS to name and find their fridges, toasters and toilets. According to a recent IDG Research Services Survey this rate of traffic will only grow. What's driving t...
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...
"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.
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focused on understanding how industrial data can create intelligence for industrial operations. Imagine ...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
There is no doubt that Big Data is here and getting bigger every day. Building a Big Data infrastructure today is no easy task. There are an enormous number of choices for database engines and technologies. To make things even more challenging, requirements are getting more sophisticated, and the standard paradigm of supporting historical analytics queries is often just one facet of what is needed. As Big Data growth continues, organizations are demanding real-time access to data, allowing immediate and actionable interpretation of events as they happen. Another aspect concerns how to deliver ...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
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.
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
"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.
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by mining large volumes of unstructured data, and how data tracking delivers uptime when it matters most.
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.