May 18, 2016 -
BIO-key International issued its financial results for the first quarter ended March 31, 2016, in which its total revenue declined to $430,592 compared to $648,826 in Q1 2015.
Despite this, the company said that it is confident in its growth prospects for 2016. BIO-key reiterated its full year financial guidance, and expects revenues will grow from about $5 million in 2015 to a range of $7 million to $9.5 million in 2016.
The company listed several highlights from the first quarter, including the addition of identity proofing and optional hosted authentication services in partnership with HealthIDx, the completion of a national 12- city tour with Microsoft, the release of its SideTouch product, the expansion of its healthcare partner program, signing two customers through key partnerships, and the appointment of Pieter Knook to the board.
BIO-key’s Q1 2016 total revenue decreased to $430,592 compared to $648,826 in Q1 2015. Meanwhile, the company’s service revenues, which is mainly comprised of recurring maintenance and support, increased 14% to $284,726 compared to $250,353 in Q1 2015, which it attributes to its growing base of customer installations.
License and other revenue decreased to $145,866 from $398,473, which mostly reflects the timing of larger contract revenues. Hardware sales decreased 20% from $126,451 in Q1 2015 to $101,075 in Q1 2016.
The company’s Q1 2016 gross margin dropped to 74% from 79% in Q1 2015, due to lower revenue. Conversely, Q1 2016 operating expenses increased by 2.3% to $1,481,014 compared to $1,447,322 in Q1 2015 due to increased R&D expense.
BIO-key’s Q1 2016 net loss increased to ($1,163,214), compared to a net loss of ($924,103) in Q1 2015.
At March 31, 2016, BIO-key had cash, cash equivalents and net receivables of $5,698,295 compared to $7,712,483 December 31, 2015.
“BIO-key made solid strides in the first quarter of 2016 in expanding our market position through several strategic initiatives, however as we cautioned during our March conference call, quarterly variances in our business, including difficulty predicting the timing of contracts, will remain with us in fiscal year 2016,” said Michael DePasquale, chairman and CEO of BIO-key.
“Our first quarter revenue declined to $431K compared to $648K in the first quarter of 2015 however, looking beneath the top line, there was ongoing growth in our base of recurring revenue from software maintenance and services of $58,372 or 44% in the first quarter of 2016 versus last year.”
Previously reported, BIO-key began offering its compact SideSwipe and EcoID USB fingerprint readers on Amazon.com, initially in a three-pack configuration for $119.97.