Biometrics stocks: quarterlies, annuals, SEC actions
New Jersey-based biometric systems provider BIO-key told the Securities and Exchange Commission May 16 its first quarter financials report will be delayed an unspecified period.
Nasdaq, the exchange on which its shares trade, sent a notice to BIO-key May 23 that it is in breach of exchange requirements about timely financials report submission. Nasdaq’s note is just that for now, but if noncompliance continues penalties can be significant.
In their alert to the SEC, executives issued boilerplate language about not being able to file performance figures on time without unreasonable expense and effort.
BIO-key has to show a plan to distribute the information, at which point Nasdaq officials can extend the deadline by up to 180 calendar days from the original deadline.
Mitek said the same to regulators earlier this month about its quarterly report when it could not produce the information on time.
Switch to software as a service continues at Trust Stamp
May 26, 2023 – Trust Stamp, a biometric multi-factor authenticator, is facing a moment in its history that separates the clients and employees who have faith in the plan and those who do not.
All the key financial numbers are sliding down rapidly. Trust Stamp reported that its first-quarter loss was $2.5 million, or $.50 a share, on revenue of $485,000 for the period ending March 31. This compares with a loss of $1.69 million, or $.37, on revenue of $2.8 million for the same period a year ago.
Some portion of the drop is attributable to the plan that the company has been implementing for months. The idea is to switch from custom software development to software as a service, which is being executed now.
Executives added an orchestration layer to its products and services, too, and they have been siphoning off resources from other sales efforts to staff the orchestration layer business. Sales, general and administrative spending was cut 37 percent between first quarter 2023 and 2022.
Trust Stamp says it expects “meaningful revenue” from this unit in fiscal 2024.
It has integrated orchestration layer products with the Driver License Data Verification System from the American Association of Motor Vehicle Administrators. With this done, according to the company, executives say they can build simplified ID tools for administrators.
All of that could lead to more revenue at some point, but today is not that point. Revenue fell by 84 percent in the most recent quarter compared to the first quarter of last year. Most of that drop, according to the software maker, was caused by a U.S. Immigration and Customs Enforcement contract that was terminated last year.
Q1 revenue rises for Idex
May 25, 2023 – Biometric sensor maker Idex saw its year-over-year loss narrow slightly during the first quarter, ended March 31. But its revenue rose by a third.
Idex, which makes sensors for cards and embedded devices, reported a loss of $7.2 million, or $.01 per basic and diluted share, on revenue of $1.2 million. This compares to a loss of $8.1 million, or $.01, on revenue of $989,000 for the first quarter of fiscal 2022.
Executives were able to reduce operating expenses on a quarter-to-quarter comparison. In the most recent period, the company reported $8.6 million and $8.9 million a year ago.
The market inflection point claimed in 2022, when nine biometric payment card programs using Idex sensors were launched, could be continuing this year. The company says seven Turkish and Bangladeshi banks have committed to its sensors so far this year. Europe and the Middle East are showing “particularly strong” interest.
Mastercard signed off on Idex’ fingerprint test assessment, which is essential to winning real estate on the finance company’s cards. Complete certification, according to the company, is expected in the second quarter this year.
Encouraging signs in Voxx Biometric’s Q4
May 24, 2023 – Voxx Biometrics, a unit of electronics conglomerate Voxx International, reported a much-improved 2023 fourth-quarter gross margin compared to the final quarter of 2022, ended February 28. Voxx Biometrics said its gross margin was 39.8 percent in the fourth quarter of 2023, compared to a negative margin a year ago. No actual number was released.
The unit’s net sales in the fourth quarter of 2023 was $400,000 as compared with $100,000 in the same period a year ago. Executives attributed the gain to rising customer numbers during the fiscal year.
Parent Voxx International reported a net loss of $30.9 million, or $1.17 a share, on revenue of revenue of $534 million for fiscal year 2023, ended February 28. This compares with a loss of $27.4 million, or $.92 a share, on revenue of $635.9 million for fiscal 2022.
The last fiscal year that Voxx was in the black was 2021, when it reported a profit of $26.7 million and a per-basic-share profit of $1.11.