May 13, 2015 -
BIO-key International, Inc. reported results for its first quarter ended March 31, 2015, as well as provided an update on its full year 2015 revenue guidance range which remains $5 million to $7 million.
The company’s first quarter revenue declined to $649,000 from $1,368,000 in the previous year, which is mostly due to the variability in timing of software license activity in the comparable periods. Service revenues remained relatively unchanged in the first quarter of 2015 and first quarter of 2014 periods.
During the first quarter, BIO-key continued to ship biometric software solutions to support the roll-out of the AccuDose product line of Aesynt (formerly McKesson) as well as the continued expansion of biometric ID deployments via commercial partners ChoicePoint / LexisNexis, Educational Biometric Technology, and Identimetrics.
The gross margin for the first quarter dipped down to 79% from 91% in the previous year, which can be attributed to the decrease in software license revenue and an increase in costs related to non-recurring custom services revenue.
Operating expenses for the first quarter increased 8%, to $1,447,000 from $1,344,000 in the previous year. This is largely due to an increase in non-cash share based compensation expenses and higher costs related to sales and marketing activities and legal expense.
BIO-key also reported a net loss of $924,000 in the first quarter of 2015, compared to a net loss of $299,000 in the first quarter of 2014.
Liquidity and Capital Resources BIO-key had cash and cash equivalents of $303,000 and total current assets of $1,207,000 at March 31, 2015, compared to $1,794,000 of total current assets at December 31, 2014. Net cash used for operations during Q1 ’15 was $519,000 compared to $1,277,000 in Q1’14.
The company continues to expect full year 2015 revenue to range between $5.0 million and $7.0 million with a gross margin ranging between 75% and 80%.
BIO-key also emphasized that its sales and marketing throughout the year will focus on large enterprise and government opportunities that have been sourced directly or through partners.
“We made good progress across the business during the first quarter, helping to solidify our outlook for the balance of 2015 and beyond,” said Michael DePasquale, BIO-key chairman and CEO. “Our go to market strategy builds upon our growing base of OEM and distribution relationships that substantially expand our reach as well as focused direct sales efforts.
“Though our Q1 sales performance fell below last year’s level, this reflects the deal-driven nature of our software licensing efforts and was in-line with our anticipated range. Looking out over the balance of 2015, we are on target to achieve our full year revenue guidance of five to seven million dollars and expect to demonstrate the strength of our sales effort in our Q2 performance.”