Identity and Access Management Security Provider BIO-key’s 2021 Revenue Rose 80% to $5.1M, Driven by Demand for Identity-as-a Service Cloud Solutions; Investor Call Today at 10am ET
BIO-key International, Inc. (BKYI) reported a strong FY’21 with an 80% revenue increase to $5.1M, driven by its PortalGuard IAM solution. Key highlights include support for over 2.5M students, new government contracts, and the acquisition of Swivel Secure Europe, which generated $3.1M revenue in 2021. The company is optimistic about 2022, projecting revenue between $10-13M, equivalent to over 100% growth.
However, Q4'21 revenue fell to $935K from $1.1M YoY. Operating expenses rose to $8.4M, leading to an operating loss of $4.9M, though the net loss decreased from $9.8M in FY’20 to $5.1M.
- Revenue increased 80% to $5.1M in FY’21 from $2.8M in FY’20.
- PortalGuard now supports over 2.5M students and faculty.
- Acquisition of Swivel Secure Europe adds $3.1M in revenue.
- Strong revenue growth projected for 2022, with guidance of $10-13M.
- Q4’21 revenue declined to $935K from $1.1M in Q4’20.
- Operating loss increased to $2M in Q4’21 from a loss of $1.4M in Q4’20.
WALL, N.J., March 29, 2022 (GLOBE NEWSWIRE) -- BIO-key International, Inc. (Nasdaq: BKYI), an innovative provider of workforce and customer identity and access management (IAM) solutions featuring Identity-Bound Biometrics (IBB) and large-scale identity solutions, today reported results for its fourth quarter (Q4’21) and year ended December 31, 2021 (FY’21). BIO-key will host a conference call today at 10:00 a.m. ET (details below) to review its results and outlook.
BIO-key’s® revenue increased
2021 & Recent Highlights:
- Increased PortalGuard Penetration of Secondary Educational Institutions - PortalGuard now supports over 2.5M students and faculty nationwide.
- Added or Expanded Numerous Government Customers, including a U.S. Department of Justice division; a Foreign Defense Ministry; a West Coast State; and Election Boards & County Governments in New Mexico; South Dakota; Missouri; New York; and Florida.
- Began Initial Technology and Mobile Biometric Enrollment Equipment Deployments, for its Large-Scale ID Projects in Africa.
- Added over 100 Channel Alliance Partners, including: Intelisys; NGEN; Appsian; Cyberlitica; Kristel Communications and UVS Infotech.
- Secured a
$1.2M , three-year contract extension for fingerprint biometric security support services from a Fortune 500 telecommunications customer. - Launched a Range of New Products and features, including SSO Concierge; a new PortalGuard Admin Panel; MobileAuth™ App with PalmPositive™; FIDO2 Compliant Security Keys; a Next-Generation EcoID II USB Compact Fingerprint Scanner; and the MobilePOS Pro Android All-in-one Terminal for biometric-secured Commerce.
- Awarded U.S. Patent for Enabling Next-generation Continuous Biometric User Authentication, increasing BIO-key’s IP Portfolio to 18 patents.
In March 2022, BIO-key further expanded its global customer base and geographic reach with the acquisition of Swivel Secure Europe, a Madrid-based IAM solutions provider serving customers in Europe, the Middle East and Africa (EMEA). Swivel Secure generated approximately
BIO-key CEO Michael DePasquale commented, “2021 was a year of transformational growth for BIO-key, as we advanced our core Identity and Access Management business, launched a range of new solutions, expanded our Channel Partner Program, and commenced deployments for our large-scale Civil ID contracts in Africa. We substantially expanded our sales & marketing reach in 2021, adding over 100 partners to our CAP program, and launched a Master Agent Referral Program with Intelisys, positioning PortalGuard as the first IAM platform to be offered through their extensive network.
“We also made excellent progress deploying our new cloud-hosted PortalGuard IDaaS solution, which we launched late in 2020. We are achieving solid new customer engagement, particularly in higher education, enterprise and government verticals that are very receptive to PortalGuard’s support for sixteen multi-factor authentication (MFA) methods, including BIO-key’s advanced biometric solutions. PortalGuard IDaaS continues to gain momentum in higher education as a strong, user friendly, attractively priced, scalable and easy-to-deploy solution for their hybrid access needs. In the first year of deployment we migrated approximately
“Our continued focus on innovation and new product development resulted in the launch of several new products and product upgrades. New products included our new MobilePOS Pro, a handheld Point-of-Sale mobile commerce terminal with biometric ID verification for secure, fraud-free transactions in banking, healthcare and social and aid worker applications. We introduced a line of cryptographic FIDO2 compliant security keys for expanded authentication options and launched our new EcoID II Compact USB fingerprint scanner with new NIST-tested algorithms. We also introduced our Single Sign-On or SSO Concierge which eliminates the need for passwords for thick client applications not supported by identity federation protocols.
“I am extremely proud of the industry awards and acknowledgements BIO-key received during the year, including for our Technology and Best Solution Awards, and for our organization being Certified™ by Great Place to Work® for the first time.
“Our large-scale Africa projects kicked off in 2021 after COVID and other external delays. These projects represent a large opportunity in terms of revenue and profits for our company. Hardware shipments resumed in 2021 and there are increasing signs that these projects should gain momentum in 2022. We are currently planning on supplying tens of thousands of Pocket10 biometric fingerprint readers in a partnership with Specta, an online lending platform owned by Sterling Bank Nigeria Plc. These shipments are part of the National Identity Management Commission’s (NIMC) mandated enrollment program for Nigerian citizens.
“Subsequent to year end we acquired Swivel Secure Europe. The transaction substantially expands our international team, operations, customer base, and growth potential, and should provide a material benefit to both our top- and bottom-line in 2022.
Outlook
“Awareness of the need for enhanced cybersecurity has never been more widespread. In 2021, the President signed EO 14028, “Improving the Nation’s Cybersecurity” to support defenses and protect critical infrastructure of the Federal Government. Just last week, the White House warned companies that we are currently in a critical moment with a need to accelerate work to improve domestic cybersecurity and bolster national resilience. BIO-key’s solutions and products directly address these issues and are critical elements of a holistic approach to cybersecurity.
“Considering this backdrop, the momentum we have in our business, the addition of Swivel Secure Europe, and the building progress in our African projects, we have never been more optimistic about our prospects. Supported by our strong capital position, our talented global management and product development teams, we are very optimistic about our growth in 2022 and beyond. Reflecting the visibility we have on our business, we are initiating full-year 2022 revenue guidance in the range of
Financial Results
FY’21 revenue increased
Gross profit grew to
Operating expenses increased to
BIO-key reported a reduced operating loss of
BIO-key reported a reduced net loss available to common stockholders of
Financial Strength
BIO-key ended the year with
| Conference Call Details | |
| Date / Time: | Today, Tuesday, March 29th 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 8157908 |
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; 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 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.
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| LinkedIn – Corporate: | https://www.linkedin.com/company/bio-key-international |
| Twitter – Corporate: | @BIOkeyIntl |
| Twitter – Investors: | @BIO_keyIR |
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| BIO-key International, Inc. and Subsidiaries CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| Three months ended December 31, | Years ended December 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenues | ||||||||||||||||
| Services | $ | 288,191 | $ | 503,667 | $ | 1,273,354 | $ | 1,432,228 | ||||||||
| License fees | 544,199 | 356,672 | 2,555,809 | 962,038 | ||||||||||||
| Hardware | 102,542 | 203,491 | 1,285,326 | 442,516 | ||||||||||||
| Total revenues | 934,932 | 1,063,830 | 5,114,489 | 2,836,782 | ||||||||||||
| Costs and other expenses | ||||||||||||||||
| Cost of services | 174,815 | 165,274 | 686,175 | 502,214 | ||||||||||||
| Cost of license fees | 49,871 | 20,405 | 183,199 | 49,891 | ||||||||||||
| Cost of hardware | 147,365 | 124,821 | 803,555 | 242,721 | ||||||||||||
| Total costs and other expenses | 372,051 | 310,500 | 1,672,929 | 794,826 | ||||||||||||
| Gross Profit | 562,881 | 753,330 | 3,441,560 | 2,041,956 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Selling, general and administrative | 1,752,344 | 1,765,119 | 6,028,360 | 5,848,687 | ||||||||||||
| Research, development and engineering | 809,856 | 409,761 | 2,355,056 | 1,396,436 | ||||||||||||
| Total operating expenses before impairment | 2,562,200 | 2,174,880 | 8,383,416 | 7,245,123 | ||||||||||||
| Operating loss | (1,999,319 | ) | (1,421,550 | ) | (4,941,856 | ) | (5,203,167 | ) | ||||||||
| Other income (expense) | ||||||||||||||||
| Interest income | 299 | 3,741 | 4,075 | 30,649 | ||||||||||||
| Foreign Currency Loss | - | - | (50,000 | ) | - | |||||||||||
| Investment-debt security reserve | (30,000 | ) | - | (60,000 | ) | - | ||||||||||
| Government grant – Paycheck Protection Program | - | - | - | 340,819 | ||||||||||||
| Interest expense | - | (19,635 | ) | (18,000 | ) | (4,343,212 | ) | |||||||||
| Loss on extinguishment of debt | - | - | - | (499,076 | ) | |||||||||||
| Total other income (expense) | (29,701 | ) | (15,894 | ) | (123,925 | ) | (4,470,820 | ) | ||||||||
| Net loss | (2,029,020 | ) | (1,437,444 | ) | (5,065,781 | ) | (9,673,987 | ) | ||||||||
| Deemed dividend from trigger of anti-dilution provision feature | - | - | - | (112,686 | ) | |||||||||||
| Net loss available to common stockholders | $ | (2,029,020 | ) | $ | (1,437,444 | ) | (5,065,781 | ) | (9,786,673 | ) | ||||||
| Basic and Diluted Loss per Common Share | $ | (0.26 | ) | $ | (0.18 | ) | $ | (0.65 | ) | $ | (2.08 | ) | ||||
| Weighted Average Shares Outstanding: | ||||||||||||||||
| Basic and Diluted | 7,797,573 | 7,771,523 | 7,791,741 | 4,700,787 | ||||||||||||
| All BIO-key shares issued and outstanding for all periods reflect BIO-key’s 1-for-8 reverse stock split, which was effective November 20, 2020. | ||||||||||||||||
| BIO-key International, Inc. and Subsidiaries CONSOLIDATED BALANCE SHEETS | ||||||||
| December 31, | ||||||||
| 2021 | 2020 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 7,754,046 | $ | 16,993,096 | ||||
| Accounts receivable, net | 970,626 | 548,049 | ||||||
| Due from factor | 49,500 | 60,453 | ||||||
| Note receivable | 82,000 | 295,000 | ||||||
| Inventory | 4,940,660 | 330,947 | ||||||
| Prepaid expenses and other | 216,041 | 201,507 | ||||||
| Investment – debt security | - | 512,821 | ||||||
| Total current assets | 14,012,873 | 18,941,873 | ||||||
| Resalable software license rights | 48,752 | 58,882 | ||||||
| Investment – debt security | 452,821 | - | ||||||
| Equipment and leasehold improvements, net | 69,168 | 81,793 | ||||||
| Capitalized contract costs, net | 249,012 | 165,315 | ||||||
| Deposits and other assets | 8,712 | 8,712 | ||||||
| Note receivable, net | 113,000 | - | ||||||
| Operating lease right-of-use assets | 254,100 | 487,325 | ||||||
| Intangible assets, net | 1,298,077 | 1,514,146 | ||||||
| Goodwill | 1,262,526 | 1,262,526 | ||||||
| Total non-current assets | 3,756,168 | 3,578,699 | ||||||
| TOTAL ASSETS | $ | 17,769,041 | $ | 22,520,572 | ||||
| LIABILITIES | ||||||||
| Accounts payable | $ | 427,772 | $ | 244,158 | ||||
| Accrued liabilities | 865,627 | 508,487 | ||||||
| Note payable – PistolStar acquisition, net of debt discount | - | 232,000 | ||||||
| Deferred revenue – current | 565,355 | 657,349 | ||||||
| Operating lease liabilities, current portion | 177,188 | 234,309 | ||||||
| Total current liabilities | 2,035,942 | 1,876,303 | ||||||
| Deferred revenue – long term | 67,300 | 44,987 | ||||||
| Operating lease liabilities, net of current portion | 86,974 | 264,163 | ||||||
| Total non-current liabilities | 154,274 | 309,150 | ||||||
| TOTAL LIABILITIES | 2,190,216 | 2,185,453 | ||||||
| Commitments | ||||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Common stock — authorized, 170,000,000 shares; issued and outstanding; 7,814,572 and 1,812,483 of $.0001 par value at December 31, 2020 and December 31, 2019, respectively | 786 | 782 | ||||||
| Additional paid-in capital | 120,153,509 | 119,844,026 | ||||||
| Accumulated deficit | (104,575,470 | ) | (99,509,689 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | 15,578,825 | 20,335,119 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 17,769,041 | $ | 22,520,572 | ||||
| All BIO-key shares issued and outstanding for all periods reflect BIO-key’s 1-for-8 reverse stock split, which was effective November 20, 2020. | ||||||||
FAQ
What were BIO-key's revenue results for FY'21?
What is BIO-key's revenue guidance for 2022?
What drove the increased revenue for BIO-key in FY'21?
How did BIO-key's fourth quarter earnings compare year-over-year?
What actions did BIO-key take regarding acquisitions?
