Revenue jumps for Plurilock, but it was paid for in two buyouts

Some of the first-quarter numbers for behavioral-biometric firm Plurilock, including revenue, look good for the company, but more do not.

The background of the hardware-and-software maker’s quarterly story is that it bought two companies, Integra and Atrion, last year. Those buyouts are “directly attributable” to a more than doubling of revenue in the period compared to the first quarter of 2022, according to a company statement.

It was saying much the same thing a year ago, after Plurilock bought Aurora Systems Consulting.

Canada-based Plurilock reported a CAN $1.3 million (US$96,000) loss for the quarter, or $.02 per basic ($.015) and diluted share, on sales of $15.7 million ($11.5 million). That compares to a loss of $2.3 million ($1.69 million), or $.03 ($.022) per share, on revenue of $6.9 million ($5 million).

The gross margin more than doubled quarter over quarter, with 13.6 percent in 2023 over 6.6 percent last year.

Cash and assets dipped a little, from $23.6 million ($17.3 million) in Q1 2022 to $22.3 million ($16.3 million) in Q1 2023. The company said the jump came thanks to the buyouts, price changes and top-end software sales.

Hardware sales continue to overpower software sales even as executives say they are focusing on high-value software sales. For the first quarter, hardware sales were $12.4 million ($9 million) compared to software sales of $2.7 million ($1.98 million).

The company issued 440,277 common shares at $.125 ($.092) to cover a December 31 convertible debenture. In another debt move, executives announced during the quarter that a $1.5 million ($1.1 million) revolving line of credit with Pathward N.A. had been increased to $2 million ($1.47 million).

In the quarterly announcement, the company said it is going to reprice its Technology Division product line to “offer competitive rates … while increasing gross margins.” That most likely means price cuts, which can be hard to come back from.

Article Topics

behavioral biometrics  |  biometrics  |  financial results  |  identity verification  |  Plurilock  |  stocks