March 23, 2015 -
BIO-key International, Inc. reported record financial results for its fourth quarter and year ended December 31, 2014, with a revenue growth of 102% over 2013 while maintaining administrative expenses at less than 2% above 2013 levels.
The company’s significant growth can best be attributed to its strategic partnerships with fingerprint sensor manufacturers IDEX and NEXT Biometrics Group ASA; the launch of its two finger sensors, SideSwipe and DASH; a collaboration deal with Experian’s next generation fraud platform, Precise ID; and agreements with 20 top-tier IAM channel partners, integration partners and resellers.
“We achieved strong sales growth in 2014, and despite the continued variations in the business quarter-to-quarter, we expect 2015 to be another record year,” said Michael DePasquale, BIO-key chairman and CEO. “We have two primary goals for 2015; to grow profitable revenue rapidly and implement rigorous internal business processes and best practices, to ensure the most consistent and predictable outcomes as the business grows in 2015 and beyond. Even after doubling our revenue in 2014, our pipeline remains robust and we expect our momentum to continue.”
BIO-key’s total revenue for the three months ended December 31, 2014 was $951,698, compared to $327,500 in the same quarter one year ago, which represents a growth of 191%.
The growth in sales was driven by significantly higher license sales, higher hardware sales and service sales, while maintenance sales held firm. Meanwhile, license and service sales grew largely as a result of OEM partnerships with fingerprint sensor vendors.
The company’s Q4 2014 gross margin remained nearly unchanged at 76% as compared to 78% in Q4 2013.
Additionally, operating expenses for Q4 2014 increased 9%, to $1,272,024 from $1,163,961 in Q4 2013, while administrative expenses decreased marginally. The company saw a Q4 2014 net loss of 45% ($506,546) when compared to Q4 2013 ($929,188).
BIO-key anticipates revenue between $0.5 million and $1.0 million for the first quarter of 2015, as well as a gross margin of approximately 75-80%.
As for the 2015 fiscal year, it expects revenue between $5.0 million and $7.0 million and gross margin of approximately 75-80%. As of December 31, 2014, BIO-key’s opportunity pipeline was valued at $25 million, which is nearly double the $12.7 million of December 31, 2013.
“Our 2015 Strategic Plan calls for several things, but mainly focuses on disciplined execution in sales and operations,” said DePasquale. “We are targeting highly regulated industries in the U.S., in particular healthcare, in addition to our OEM business, including Mobility, Identity & Access Management vendors and VARs. Internally, we are implementing structure and processes to reduce risk. With so much momentum in the industry, we believe we can maintain strong growth through 2015.”