May 15, 2013 -
BIO-key International has reported its financial results for the first quarter ended March 31, 2013.
Total revenue for the three months ended March 31, 2013 was approximately $805,000, which compares to Q1’12 revenue of approximately $1.4 million. The reduction in sales, year over year resulted primarily from lower license and one-time service revenue.
According to the company, Q1’13 sales were more diversified, with three customers accounting for 61% of sales, as compared to Q’12 when two customers represented 76% of sales.
“I’m pleased with the customer diversity during the Quarter, but the volatile sales environment remained difficult,” CEO Mike Depasquale said.
Q1’13 gross margin remained stable at 85%, compared to 87% in Q1’12. Operating expenses for the first quarter of 2013 increased 16% to approximately $995,000, compared to $859,000 in Q1’12. Excluding one-time expenses of approximately $133,000 associated with the InterDigital transactions, Q1’13 operating expense was flat, year over year.
Net loss for the first quarter of 2013 was ($315,579), or ($0.004) per fully diluted share, as compared to net income of $363,498, or $0.005 per fully diluted share, in Q1’12.
“Consistent with our previous comments, while our revenue remains difficult to predict, we believe we are reducing risk and generating increased market awareness by broadening our customer base,” Depasquale said. “With the mobile credentialing industry at an inflection point, we expect biometrics and BIO-key to participate meaningfully. We are very excited about 2013 and beyond.”
Consolidated cash, cash equivalents and accounts receivable totaled over $995,000 on March 31, 2013 compared to $879,000, as of December 31, 2012.
The quality of Q1’13 receivables improved, where one customer accounted for 56% of accounts receivable, which has since been collected.
“As you know, we accepted an investment from our Strategic Partner, InterDigital Corporation, and accredited investors, strengthening our balance sheet,” Depasquale said. “We paid some obligations and, again, we believe reducing risk now will increase shareholder value, just as the industry enters its growth phase.”
Reported previously, Caradigm and BIO-key International have just inked an OEM agreement in regards to BIO-key’s Identity and Access Managemetn suite for healthcare organizations.