BIO-key reports Q1 financials, CEO calls it ‘a good start for 2014’
BIO-key International has published its financial results for Q1 2014, showing a total revenue of $1.37 million.
According to the company, thi revenue figure represents a 70% increase from its first quarter performance in 2013. Sales reportedly grew as a result of higher license sales.
“During the quarter, we signed our first OEM agreement to supply our WEB-key client and matching algorithm to fingerprint sensor manufacturers for the mobile device vertical,” Michael DePasquale, BIO-key Chairman and CEO said. “Our topline revenue was at the high end of our guidance and we expect to continue to grow the business in 2014. We are finding a receptive audience in identity access management channels and with more market reports describing mediocre fingerprint sensor performance in the mobile field, demand for our superior algorithm and scalable, flexible solution is growing.”
In addition, says the company, Q1’14 gross margin increased to 91%, up from 85% in Q1’13. Operating expenses for Q1’14 increased, and net loss was lower this quarter as well.
“We are off to a good start for 2014 and expect this momentum to continue into the second quarter. As we mentioned during the last call, we are interested in incremental sales hires, along with potential additions to our engineering staff, in that order,” DePasquale said. “We anticipate that the market will continue to evolve towards BIO-key and drive growing demand for our products.”
Among the company’s highlights this year is a licensing agreement with IDEX. Reported previously in BiometricUpdate.com, the two companies will collaborate to deliver a sensor-sensor infrastructure solution for in-device and online authentication for consumer application.
As for Q2’14, the company expects revenue between $1 million and $1.7 million. Gross margin is expected to exceed 85%, and BIO-key anticipates to generate operating income with incrementeal revenue above the midpoint of the guidance range.
Further, says the company, it expects to exit the second quarter with a modest sales backlog. The pipeline value was approximately $15 million at the beginning of the quarter and currently remains at approximately $15 million.