BIO-key reports major gains in preliminary Q4 and full year 2017 results
BIO-key has announced a 110 percent increase in full-year revenue and a 36 percent gain in gross profits from 2016 to 2017 among unaudited preliminary fourth quarter and year-end results. The company’s net income was flat for the year, as it repeated its $4.2 million loss, but in Q4 it reports a net income of $0.5 million, a 200 percent improvement on its $0.5 million loss in Q4 2016.
“In the past year, we worked to lay the foundation for long-term revenue growth. We focused on increasing our base of customers, growing our distribution channels, and launching a new line of products to deliver BIO-key’s secure biometric technology to both enterprise and consumer customers,” BIO-key’s CEO Michael DePasquale commented. “Our efforts resulted in solid results including net income in our fourth quarter and 110% revenue growth in 2017. We are pleased with BIO-key’s performance as it reflects the ramping demand and growing adoption of our secure biometric solutions. I am confident that we are on the right track as we pursue our goal of becoming a profitable company.”
Nearly 70 percent of BIO-key’s revenues were from software, licenses, and maintenance in the past year, with growing demand from customers deploying multi-factor authentication to protect against internal data breaches. The company won a $4 million contract for fingerprint biometric security software from a Fortune 500 company just prior to the close of its fiscal year on December 31.
Hardware readers contributed approximately 24 percent of the company’s revenues, with several new contracts including one with a U.S. government defense contractor. The company’s line of biometric and Bluetooth-enabled Touchlock products generated 5.5 percent of its 2017 revenue.
BIO-key expanded its distribution reach in 2017 with new relationships and the launch of its own sales website.
For fiscal 2018, Bio-Key plans to launch new mobile product applications, and set up support sales teams in countries including India, Malaysia, Sri Lanka, Singapore, and China. It also intends to leverage its IP portfolio with enhanced fingerprint solution performance and additional authentication factors, and expand its relationships with Identity and Access Management providers. An update of its fingerprint algorithm software has already been released in the new fiscal year.
The company has already made several announcements in 2018, as previously reported, including a deal to provide a U.S. community bank with biometric hardware and software.