Leading Government Defense Ministry Awards BIO-key $500K In Follow-On Orders for Biometric User Authentication

Rhea-AI Summary

BIO-key International, Inc. (NASDAQ: BKYI) has secured over $500K in new orders from a leading government defense ministry for its biometric user authentication solution. This follows a three-year purchasing agreement and expands the ministry's deployment to over 33,000 users. BIO-key's solution provides phoneless, tokenless, and passwordless authentication for secure access to digital services.

The company's biometric platform has been integrated with the ministry's virtual desktop infrastructure (VDI) and authentication federation platform. BIO-key's credentials, being the individuals themselves, cannot be shared, delegated, phished, or forgotten. The company expects additional awards as the ministry expands the solution's use to more personnel.

Positive

• Secured over $500K in new orders from a leading government defense ministry
• Expanded deployment to over 33,000 users
• Potential for additional awards as the ministry expands solution use
• Integration with ministry's VDI and authentication federation platform
• Growing interest from the defense vertical

Negative

• None.

Financial Analyst

The $500K follow-on order from a major defense ministry is a positive development for BIO-key, albeit relatively modest in scale. This demonstrates continued trust and satisfaction from a high-profile client, potentially opening doors for further expansion within the defense sector. The three-year purchasing agreement suggests a stable revenue stream, which is favorable for investor confidence.

However, with BIO-key's market cap around $10 million, this order alone isn't transformative. The company's ability to secure additional orders and expand its client base will be important for long-term growth. Investors should monitor the company's cash burn rate and overall financial health, as small-cap tech companies often face challenges in achieving profitability.

Cybersecurity Expert

BIO-key's Identity-Bound Biometrics (IBB) solution addresses critical security challenges in the defense sector. The phoneless, tokenless and passwordless authentication approach significantly reduces the risk of credential theft and phishing attacks, which are major concerns for high-security environments.

The integration with virtual desktop infrastructure (VDI) and authentication federation platforms demonstrates the solution's versatility and scalability. This could be a key differentiator in the competitive IAM market. However, as biometric data is highly sensitive, investors should pay attention to BIO-key's data protection measures and compliance with international privacy regulations, which could impact future adoption rates.

BIO-key credentials are the individual themselves, access cannot be shared, delegated, phished or forgotten.

HOLMDEL, N.J., Sept. 10, 2024 (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) for phoneless, tokenless, passwordless and phish-resistant authentication experiences, announced that one of the world’s most respected government defense ministries has awarded BIO-key over $500K in new orders for BIO-key’s biometric user authentication solution pursuant to a three-year purchasing agreement.

The defense ministry continues to expand its deployment of BIO-key’s biometric authentication solution into new programs and user scenarios, delivering convenient phoneless, tokenless and passwordless authentication access to digital services for over 33,000 users. BIO-key expects additional awards in future periods as the defense ministry expands the use of its solution to additional defense ministry personnel.

BIO-key’s secure biometric authentication platform has been integrated with the ministry’s virtual desktop infrastructure (VDI) capabilities to allow secure VDI-optimized biometric authentication without requiring phones or tokens. BIO-key has worked closely with the ministry’s cybersecurity team to integrate its state-of-the-art, cloud-enabled biometric authentication with the ministry’s authentication federation platform to deliver advanced, secure biometric access to systems and applications across organizational boundaries. Because BIO-key credentials are the individual themselves, access cannot be shared, delegated, phished or forgotten.

Jim Sullivan, BIO-key’s SVP Strategy and Chief Legal Officer, said, “BIO-key’s relationship with this innovative customer continues to expand, as does interest from the defense vertical in general. This is one of the most discriminating buyers of security technology worldwide. It is an honor to be trusted to provide the highest level of security possible by biometrically ensuring only the right user accesses the most sensitive information. BIO-key has a long history providing secure, robust solutions in government, defense, finance, retail and other highly-regulated industries, and we are finding that our superior user experience and cost-saving tokenless solution translates well to enterprise authentication."

About BIO-key International, Inc. (www.BIO-key.com)
BIO-key is revolutionizing authentication and cybersecurity with biometric-centric, multi-factor identity and access management (IAM) software securing access for over thirty-five million users. BIO-key allows customers to choose the right authentication factors for diverse use cases, including phoneless, tokenless and passwordless biometric options. Its hosted or on-premise PortalGuard IAM solution provides cost-effective, easy-to-deploy, convenient, and secure access to computers, information, applications, and high-value transactions.

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 to satisfy working capital needs; our ability to continue as a going concern; 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 industry; market acceptance of biometric products generally and our products under development; our ability to convert sales opportunities to customer contracts; our ability to expand into Asia, Africa and other foreign markets; our ability to integrate the operations and personnel of Swivel Secure into our business; fluctuations in foreign currency exchange rates; delays in the development of products, the commercial, reputational and regulatory risks to our business that may arise as a consequence the restatement of our financial statements, including any consequences of non-compliance with Securities and Exchange Commission (“SEC”) and Nasdaq periodic reporting requirements; our temporary loss of the use of a Registration Statement on Form S-3 to register securities in the future; any disruption to our business that may occur on a longer-term basis should we be unable to remediate during fiscal year 2024 certain material weaknesses in our internal controls over financial reporting, 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, 2023 and other filings with the SEC. 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
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LinkedIn – Corporate:	https://www.linkedin.com/company/bio-key-international
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Investor Contacts
William Jones, David Collins
Catalyst IR
BKYI@catalyst-ir.com or 212-924-9800

FAQ

What is the value of BIO-key's new orders from the defense ministry?

BIO-key International (NASDAQ: BKYI) has secured over $500,000 in new orders from a leading government defense ministry for its biometric user authentication solution.

How many users are currently using BIO-key's authentication solution at the defense ministry?

The defense ministry has expanded BIO-key's biometric authentication solution to over 33,000 users for secure access to digital services.

What are the key features of BIO-key's authentication solution for the defense ministry?

BIO-key's solution offers phoneless, tokenless, and passwordless authentication. It integrates with the ministry's virtual desktop infrastructure (VDI) and authentication federation platform, providing secure biometric access across organizational boundaries.

Why is BIO-key's biometric authentication considered secure for the defense ministry?

BIO-key's credentials are the individuals themselves, meaning access cannot be shared, delegated, phished, or forgotten. This ensures only the right user can access sensitive information, providing the highest level of security.