Identity and Access Management Cyber-Security Provider BIO-key’s Q2 Revenue Rises 96% to $1.9M, Driven by Growth in Software, Services and Products; Investor Call Today at 10am ET
BIO-key International, Inc. (Nasdaq: BKYI) reported a 96% revenue increase to $1.9M for Q2 2022, driven by higher software license fees and growth in hardware and services revenue. The company achieved a gross profit of $1.2M but saw a decline in gross profit margin to 63%. Total operating expenses rose to $2.8M, leading to a net loss of $1.7M, or $0.21 per share. Despite these losses, BIO-key anticipates full-year revenue guidance of $10-13M, aiming for more than 100% growth over 2021.
- Q2'22 revenues increased 96% to $1.9M from $1.0M in Q2'21.
- Software license revenue grew by 75.5%, contributing significantly to the overall increase.
- Achieved a gross profit of $1.2M, reflecting increased revenues.
- New customer acquisitions and partnerships are expanding market reach.
- Net loss increased to $1.7M from $1.2M in Q2'21, equating to a loss of $0.21 per share.
- Gross profit margin declined from 75% to 63%, attributed to lower-margin hardware revenue.
- Total operating expenses rose to $2.8M, reflecting increased costs in selling, general, and administrative expenses.
WALL, N.J., Aug. 12, 2022 (GLOBE NEWSWIRE) -- BIO-key® International, Inc. (Nasdaq: BKYI), an innovative provider of workforce and customer identity and access management (IAM) and large-scale identity solutions, featuring Identity-Bound Biometrics (IBB), today reported results for its second quarter ended June 30, 2022 (Q2’22). BIO-key is hosting a conference call today at 10:00 a.m. ET (details below) to review its results and outlook.
Highlights:
- Q2’22 revenues rose
96% to$1.9M from$1.0M in Q2’21, driven by a$0.5M increase in software license fees, as well as$0.3M and$0.15M increases in hardware and services revenue, respectively. - Expanded PortalGuard Penetration with new customers, including YYK Enterprises Operations and a Texas City and New Channel Alliance Program partners, including the Amazon Web Services Partner Network, 3Eye Technologies and Darksteel Technologies.
- BIO-key’s PortalGuard® platform was a gold recipient of Security Today magazine’s 2022 Govies Government Security Award in User Authentication/Identification/Credentialing and Management; the Publisher's Choice for Multi-factor Authentication (MFA) Award from Cyber Defense Magazine during RSA 2022; the 2022 Fortress Cyber Security Award in Authentication and Identity; and RemoteTech Breakthrough’s Identity Management Solution of the Year 2022.
BIO-key CEO Michael DePasquale commented, “Our second quarter and first half revenue demonstrate growing momentum in our base of annual recurring revenue (ARR) from software licenses, which is a core focus and principal value driver for our business. Our Q2’22 performance included the first full quarter of operating results from our Swivel Secure Europe operations acquired in March and the integration of this business is proceeding according to plan.
“PortalGuard continues to gain momentum in higher education, municipal governments, and enterprises as a high-value, easy-to-deploy solution for hybrid access needs. Our progress is being supported by a growing base of Channel Alliance Partners (CAP) around the world, strong customer references, an expanding base of industry awards, and our digital and direct sales and marketing initiatives. Customers are increasingly recognizing PortalGuard’s value, flexibility and support for sixteen multi-factor authentication factors, including BIO-key’s industry leading Identity Bound Biometric capabilities.
Outlook
“BIO-key has built a strong base of products and services and a growing global footprint of partnerships and direct sales resources to address the substantial cybersecurity and IAM needs around the world. Given our progress to date and the growing scope of opportunities we are identifying, we remain confident in achieving our full-year 2022 revenue guidance of
“Our guidance anticipates continued growth in recurring software license revenue to roughly
Financial Results
Q2’22 revenues increased
Gross profit grew to
Total operating expenses increased to
BIO-key reported a net loss of
Financial Strength
BIO-key ended the second quarter with working capital of
| Conference Call Details | ||
| Date / Time: | Friday, August 12th at 10 a.m. ET | |
| Call Dial In #: | 1-877-418-5460 U.S. or 1-412-717-9594 International | |
| Live Webcast / Replay: | Investor Webcast & Replay – Available for 3 months. | |
| Audio Replay: | 1-877-344-7529 U.S. or 1-412-317-0088 Int’l; code 6599160 | |
About BIO-key International, Inc. (www.BIO-key.com)
BIO-key has over two decades of expertise in providing authentication technology for thousands of organizations and millions of users and is revolutionizing authentication with biometric-centric, multi-factor identity and access management (IAM) solutions, including PortalGuard that provides convenient and secure access to devices, information, applications, and high-value transactions. BIO-key's patented software and hardware solutions, with industry-leading biometric capabilities, enable large-scale on-premises and Identity-as-a-Service (IDaaS) solutions as well as customized enterprise and cloud solutions.
BIO-key Safe Harbor Statement
All statements contained in this press release other than statements of historical facts are "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 not guarantees of future performance or events and are subject to risks and uncertainties that may cause actual results to differ materially from those included within or implied by such forward-looking statements. These risks and uncertainties include, without limitation, 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 in the biometric technology and identity access management industries; market acceptance of biometric products generally and our products under development; our ability to execute and deliver on contracts in Africa; our ability to expand into Asia, Africa and other foreign markets; our ability to integrate the operations and personnel of PistolStar and Swivel Secure into our business; fluctuations in foreign currency exchange rates; the duration and severity of the current coronavirus COVID-19 pandemic and its effect on our business operations, sales cycles, personnel, and the geographic markets in which we operate; the duration and extent of continued hostilities in Ukraine and its impact on our European customers, 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, 2021 and 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. Except as required by law, we undertake no obligation to disclose any revision to these forward-looking statements whether as a result of new information, future events, or otherwise.
| Engage with BIO-key | ||
| Facebook – Corporate: | https://www.facebook.com/BIOkeyInternational/ | |
| LinkedIn – Corporate: | https://www.linkedin.com/company/bio-key-international | |
| Twitter – Corporate: | @BIOkeyIntl | |
| Twitter – Investors: | @BIO_keyIR | |
| StockTwits: | BIO_keyIR | |
| Media Contact | Investor Contact | |
| Erin Knapp | William Jones, David Collins | |
| Matter Communications | Catalyst IR | |
| BIO-key@matternow.com | BKYI@catalyst-ir.com | |
| 914-260-3158 | 212-924-9800 |
| BIO-KEY INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| June 30, 2022 | December 31, 2021 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 4,893,042 | $ | 7,754,046 | ||||
| Accounts receivable, net | 2,039,062 | 970,626 | ||||||
| Due from factor | 76,940 | 49,500 | ||||||
| Note receivable, net of allowance | 119,644 | 82,000 | ||||||
| Inventory | 4,888,601 | 4,940,660 | ||||||
| Prepaid expenses and other | 331,697 | 216,041 | ||||||
| Total current assets | 12,348,986 | 14,012,873 | ||||||
| Resalable software license rights | 43,768 | 48,752 | ||||||
| Investment – debt security, net | 302,821 | 452,821 | ||||||
| Equipment and leasehold improvements, net | 135,237 | 69,168 | ||||||
| Capitalized contract costs, net | 301,225 | 249,012 | ||||||
| Deposits and other assets | 8,712 | 8,712 | ||||||
| Note receivable, net of allowance | 68,356 | 113,000 | ||||||
| Operating lease right-of-use assets | 206,792 | 254,100 | ||||||
| Intangible assets, net | 1,952,606 | 1,298,077 | ||||||
| Goodwill | 2,256,402 | 1,262,526 | ||||||
| Total non-current assets | 5,275,919 | 3,756,168 | ||||||
| TOTAL ASSETS | $ | 17,624,905 | $ | 17,769,041 | ||||
| LIABILITIES | ||||||||
| Accounts payable | $ | 1,279,301 | $ | 427,772 | ||||
| Accrued liabilities | 849,719 | 828,997 | ||||||
| Earnout payable – Swivel acquisition | 500,000 | - | ||||||
| Government loan – BBVA Bank, current portion | 122,000 | - | ||||||
| Deferred revenue, current portion | 588,949 | 565,355 | ||||||
| Operating lease liabilities, current portion | 192,581 | 177,188 | ||||||
| Total current liabilities | 3,532,550 | 1,999,312 | ||||||
| Deferred revenue, net of current portion | 71,524 | 67,300 | ||||||
| Operating lease liabilities, net of current portion | 22,004 | 86,974 | ||||||
| Government loan – BBVA Bank, net of current portion | 379,287 | - | ||||||
| Total non-current liabilities | 472,815 | 154,274 | ||||||
| TOTAL LIABILITIES | 4,005,365 | 2,153,586 | ||||||
| Commitments and Contingencies | ||||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Common stock — authorized, 170,000,000 shares; issued and outstanding; 8,441,574 and 7,853,759 of $.0001 par value at June 30, 2022 and December 31, 2021, respectively | 844 | 786 | ||||||
| Additional paid-in capital | 121,022,606 | 120,190,139 | ||||||
| Accumulated other comprehensive loss | (110,081 | ) | - | |||||
| Accumulated deficit | (107,293,830 | ) | (104,575,470 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | 13,619,540 | 15,615,455 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 17,624,905 | $ | 17,769,041 | ||||
| BIO-KEY INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenues | ||||||||||||||||
| Services | $ | 435,106 | $ | 286,641 | $ | 830,910 | $ | 666,663 | ||||||||
| License fees | 1,162,148 | 662,193 | 2,622,331 | 1,141,151 | ||||||||||||
| Hardware | 349,861 | 43,256 | 435,045 | 1,072,914 | ||||||||||||
| Total revenues | 1,947,115 | 992,090 | 3,888,286 | 2,880,728 | ||||||||||||
| Costs and other expenses | ||||||||||||||||
| Cost of services | 180,677 | 158,440 | 391,590 | 334,384 | ||||||||||||
| Cost of license fees | 358,136 | 48,373 | 431,366 | 87,342 | ||||||||||||
| Cost of hardware | 185,140 | 32,756 | 238,438 | 584,478 | ||||||||||||
| Total costs and other expenses | 723,953 | 239,569 | 1,061,394 | 1,006,204 | ||||||||||||
| Gross profit | 1,223,162 | 752,521 | 2,826,892 | 1,874,524 | ||||||||||||
| Operating Expenses | ||||||||||||||||
| Selling, general and administrative | 2,006,573 | 1,374,084 | 3,804,571 | 2,890,482 | ||||||||||||
| Research, development and engineering | 784,083 | 490,952 | 1,589,349 | 932,603 | ||||||||||||
| Total Operating Expenses | 2,790,656 | 1,865,036 | 5,393,920 | 3,823,085 | ||||||||||||
| Operating loss | (1,567,494 | ) | (1,112,515 | ) | (2,567,028 | ) | (1,948,561 | ) | ||||||||
| Other income (expense) | ||||||||||||||||
| Interest income | 77 | 832 | 208 | 3,447 | ||||||||||||
| Loss on foreign currency transactions | - | (50,000 | ) | - | (50,000 | ) | ||||||||||
| Investment-debt security reserve | (150,000 | ) | - | (150,000 | ) | - | ||||||||||
| Interest expense | (1,540 | ) | - | (1,540 | ) | (18,000 | ) | |||||||||
| Total other income (expense), net | (151,463 | ) | (49,168 | ) | (151,332 | ) | (64,553 | ) | ||||||||
| Net loss | $ | (1,718,957 | ) | $ | (1,161,683 | ) | $ | (2,718,360 | ) | $ | (2,013,114 | ) | ||||
| Comprehensive loss: | ||||||||||||||||
| Net loss | $ | (1,718,957 | ) | $ | (1,161,683 | ) | $ | (2,718,360 | ) | $ | (2,013,114 | ) | ||||
| Other comprehensive income – Foreign currency translation adjustment | (165,883 | ) | - | (110,081 | ) | - | ||||||||||
| Comprehensive loss | $ | (1,884,840 | ) | $ | (1,161,683 | ) | $ | (2,828,441 | ) | $ | (2,013,114 | ) | ||||
| Basic and Diluted Loss per Common Share | $ | (0.21 | ) | $ | (0.15 | ) | $ | (0.34 | ) | $ | (0.26 | ) | ||||
| Weighted Average Common Shares Outstanding: | ||||||||||||||||
| Basic and diluted | 8,098,020 | 7,776,190 | 7,992,102 | 7,774,946 | ||||||||||||
FAQ
What were BIO-key's revenue results for Q2 2022?
How much did BIO-key lose in Q2 2022?
What is BIO-key's full-year revenue guidance for 2022?
What led to the increase in BIO-key's revenues in Q2 2022?
How did operating expenses change for BIO-key in Q2 2022?
