Welcome!

IBM Cloud Authors: Sematext Blog, Olivier Huynh Van, Elizabeth White, Liz McMillan, 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
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
From wearable activity trackers to fantasy e-sports, data and technology are transforming the way athletes train for the game and fans engage with their teams. In his session at @ThingsExpo, will present key data findings from leading sports organizations San Francisco 49ers, Orlando Magic NBA team. By utilizing data analytics these sports orgs have recognized new revenue streams, doubled its fan base and streamlined costs at its stadiums. John Paul is the CEO and Founder of VenueNext. Prior ...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, will compare the Jevons Paradox to modern-day enterprise IT, e...
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
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...
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...
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
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.
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
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...
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
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 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 solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...