BIO-key secures $10 million in orders for biometric authentication platform
BIO-key has secured orders from two customers for its biometric authentication platform worth more than $10 million combined, according to a company announcement.
The customers are both based in Hong Kong, and focused on Asia’s technology and financial services industries. They will implement a solution based on the BIO-key WEB-key biometric security platform, allowing users to complete secure transactions on mobile devices, and employees to securely access company information. BIO-key expects the first $5 million in license revenue to be booked during the current quarter, with the remainder earned in calendar 2019.
“Since starting operations in the Asia Pacific Region in 2016 we are pleased to have closed the first orders that will utilize our software for multi-factor authentication,” stated BIO-key Chairman and CEO Mike DePasquale. “It has been our goal and objective to open the Asian markets through our operations in Hong Kong and China and this is the first step in addressing enterprise and consumer security in one of the fastest growing regions of the world.”
Unusual circumstances affect quarterly financial numbers
BIO-key also reported its third quarter results, including a decline of just over $200,000 in revenue to $739,750, which the company attributes to lower fingerprint hardware and biometric lock sales, and project timing.
Several financial indicators were significantly impacted by unusual or one-time events, including a major cost for software license amortization, and the modification of outstanding warrants due to anti-dilution provisions being triggered.
DePasquale says that BIO-key’s full-year results will be more indicative of its business performance, and ultimately the company has narrowed its revenue guidance range to $8 to $9 million based on near-term contract activity, and has the same amount of net working capital ($4.7 million) as at the end of calendar 2017.
He also says the company generated several enterprise customer leads from its participation in Microsoft Ignite 2018, and is continuing to expand the distribution of its biometric locks, such as the TouchLock Bike product which it launched to Amazon in the U.S. during the quarter.