BIO-key doubles revenue on hardware sales growth
BIO-key reported a 118 percent revenue increase to $942,000 in its third quarter revenue report on Wednesday, driven by increased demand, broader distribution, and an expanded line of products including its TouchLock padlocks.
Hardware devices made up over half of BIO-key’s revenues in the quarter ending September 30, rising 133 percent to $512,000, including $164,000 from sales of TouchLock, which launches in the U.S. this quarter.
BIO-key reached deals to supply its SideSwipe fingerprint sensor to a government defense contractor in October, its EcoID reader to a U.S. insurance provider in September, and hardware and software to an Australian government agency in July through new distribution partner Aquion Pty Ltd. It was also selected to provide SideTouch fingerprint readers to a global financial institution in July.
Overall, the company reported a net loss of $1.6 million, or $0.28 per share, an increase of 31 percent over Q32016.
“In order to build visibility and support expanded sales, we continue to expand our retail and online distribution,” says Michael DePasquale, BIO-key chairman and CEO commented. “To this end, we recently launched our own e-commerce website targeted primarily to consumers. Managing our own online marketplace should provide valuable customer insights such as product preferences, purchasing patterns and the effectiveness of various sales and marketing programs.”
DePasquale also said that software license sales continue to be unpredictable for the company, but expressed confidence in its enterprise sales prospects in the longer term.
“Overall, we do see a changing sense of urgency for finding and deploying two-factor authentication solutions. This trend, combined with the attractiveness of our consumer offerings should provide solid opportunities for growth and improved bottom line performance.”
BIO-key joined the NASDAQ under the symbol BKYI in July, and shares were trading at $1.61 early Thursday.