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4 biometrics provider quarterly reports that do not look scary-bad

4 biometrics provider quarterly reports that do not look scary-bad
 

There seems to be less of a feeling of freefall in quarterlies. It is nothing to build a trend on yet, but financial positions show some stabilization. Plenty of executives are still looking for funding life lines.

Today, we have financials from SuperCom, authID, Next Biometrics and BIO-key. But not Mitek.

Mitek has missed filing its quarterly financial report, the U.S. 10-K. The same happened with its annual government report for the year ended September 30 and the quarter ended December 31. The company has said in government filings that its accounting firm resigned, causing disruption in financial reporting.

The company “is also in the process of evaluating deficiencies identified in connection with its assessment of the effectiveness of its internal control over financial reporting,” according to its SEC form 12b-25.

Missing a quarter is like trying to match greens in a suit. There might be a valid reason (got dressed in the dark), but it is just a terrible look, one that many people will always remember. Missing three quarterly reports is more like forgetting one’s pants. Embarrassing questions will be asked.

Public-sector ID vendor SuperCom is reporting qualified good news in its first quarter of 2023. Executives say they have narrowed their loss for the period ended March 31 and increased revenue.

The Israeli firm narrowed its net first quarter loss by 35 percent year over year. At the same time, revenue rose 109 percent year over year. Executives are pointing out that that is the third consecutive quarter of year-over-year increase in revenue.

SuperCom reported an unaudited net loss for the first quarter of $1.5 million on revenue of $6.3 million in the most recent period. That compares to a net loss of $2.3 million on revenue $3 million during the first quarter of 2022.

Subtracting interest, taxes, depreciation and amortization, first-quarter earnings rose to $400,000 compared to a $300,000 loss for the first quarter of 2022. That reportedly is the third consecutive quarter of positive Ebitda.

SuperCom reported having $22.6 million in working capital at the end of March, and it raised $2.4 million in gross proceeds in a registered direct share offering.

Biometric authentication provider authID is reporting more-mixed results.

The company, based in the U.S. state of Colorado, reported a net loss of $5.2 million, or $0.21, on revenue of $37,800 during the first quarter, ended March 31, compared to a net loss of $5.3 million, or $0.22, on revenue of $165,000 for the same quarter a year ago.

The drop in revenue has been blamed on a discontinued legacy product, according to authID. Which product was not specified.

Adjusted Ebitda, was a loss of $2.2 million during the first quarter this year compared to a $2.8 million loss for the same period last year.

Like SuperCom, authID was able to raise outside funds. In this case, executives tapped real estate developer and long-time investor Stephen Garchik for up to $3.6 million.

The money bought Garchik the right to add four new board members to the company. Two of them is Rhon Daguro, former chief revenue officer of ID vendor Socure, and Thomas Szoke, founder of authID.

In Norway, Next Biometrics is explaining another poor quarter as the consequence of “rebuilding a company.”

In a note to investors explaining the first quarter, ended March 31, CEO Peter Heuman says Next fingerprint sensors have extended sales cycles and recovery “requires patience.” That is without doubt true, but it also is true that technology investors are not known for patience.

The company’s first-quarter 2023 net loss before taxes was NOK 14.3 million (US$1.3 million), or NOK 0.16 per share ($0.015), on revenue of NOK 1.4 million ($130,000). That compares to a net loss of NOK 14.2 million $1.3 million), NOK 0.16 ($0.015), on revenue of NOK 2.1 million ($200,000) for the same period a year ago.

ID and access management vendor BIO-key is reporting a halved net loss in the first quarter. Quarterly revenue rose 60 year over year, as well, according to the company.

Executives say the loss was $526,000, $0.06, on revenue of $3 million, compared to a net loss of $1 million, $0.13, on revenue of $1.9 million for the first quarter last year.

High-margin annual recurring revenue and new buyers pushed revenue up, the company says. Sales reportedly are strong in colleges in California, Texas, Georgia and North Carolina.

 

This post was updated at 5:27pm Eastern on June 14, 2023 to correct an erroneous statement that Mitek had not given an explanation for its delays.

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