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Biometrics stocks: quarterlies, annuals, SEC actions

Mitek’s Q2 catch-up shows continued gains
Biometrics stocks: quarterlies, annuals, SEC actions

Sept 18, 2023 – Mitek has reported a profit of $4.4 million on revenues of $45.3 million in the second quarter of its fiscal 2023, as the remote identity verification and cheque deposit company catches up on filing its financial results.

Net income was 10 cents per share, and earnings adjusted for one-time costs and gains were 29 cents per share.

The positive Q2 report followed a first quarter result of $4.7 million in net income on $45.7 million in revenue. Mitek revenues have been rising, both specific to digital identity and overall.

The filings were delayed, at least in part, by a change in accounting firm.

Mitek also reiterated its guidance of between $169 and $171 million in revenue over the course of 2023.

Trust Stamp alleges possible illegal short selling

Aug 25, 2023 – Executives with biometric ID firm Trust Stamp suspect its shares are being depressed in value by naked short selling.

In naked short selling, or naked shorting, the shares of a company are sold without first borrowing the shares or at least confirming that the share exist. The practice, which drives down the price of a company’s stock, is largely illegal.

It’s largely illegal because federal lawmakers fashioned equity trading laws after the 2008 financial crisis that left open some loopholes.

Short selling itself is legal but infuriating to management and some investors. It is when an investor borrows a security and sells it on a stock market, fully expecting to buy it back for later at a discount.

Trust Stamp alleges that a large percentage of its trading volume has come in the form of short selling.

The company is working with the Securities and Exchange Commission, Department of Justice, Nasdaq and the Financial Industry Regulatory Authority to stop the practice and punish those involved.

Activist shareholder again calls for sale of OneSpan

Aug 25, 2023 – A large shareholder in OneSpan thinks its fellow owners would benefit the most by selling the anti-fraud software firm and the stock market appears to agree.

According to SA News, a publication of investor community Seeking Alpha, shares of OneSpan were up almost three percent on the call made by Legion Partners. Legion owns 8.7 percent of the company.

The company has a “highly attractive and stable” base of customers that multiple strategic and financial firms covet, according to a letter pushing the idea that was signed by Legion’s two managing partners.

The investing firm three years ago said value is being left unrealized by OneSpan’s current strategies and status.

In January, Blackrock, the world’s biggest asset manager, increased its ownership in OneSpan.

First-half numbers moving in the right direction for Idex

Aug 11, 2023 – Idex Biometrics reported interim first-half figures showing a loss of $14.7 million, or $0.01 per basic and diluted shares, on revenue of $2.7 million. During the same period last year, the company reported a $17.4 million, or $0.02 per share, on revenue of $2.1 million.

For the quarter, Idex reported a loss of $7.4 million on revenue of $1.5 million (a quarterly record) for the three months ended June 30. This compares with a loss of $8.3 million on revenue of $1.1 million for the same period last year.

According to the company’s interim data, gross margins grew 22 percent over the first quarter of fiscal 2023.

Service revenue collapsed in the first half. It was nonexistent in both Q1 and Q2, and had fallen unsteadily since the second quarter. At that point, service sales were $100,000, $84,000 in the third quarter of 2022 and $16,000 in the final quarter of the fiscal year.

Intellicheck moving in the right direction

Aug 11, 2023Intellicheck shaved its second-quarter net loss compared to the same period last year. For the three months ended June 30, it reported a net loss of $777,000, or $0.04 per basic and diluted share, on revenue of $4.7 million. This compares favorably with a net loss of $1.1 million, or $0.06 basic/diluted, on revenue of $4 million.

For the six months ended June 30, the identity validation software company reported a net loss of $2.1 million, or $0.11, on revenue of $8.9 million. During the first half of fiscal 2022, the company reported a net loss of $2.6 million, $0.14, on revenue of $7.4 million.

Executives say trailing 12-month SaaS revenue has increased for the previous 42 consecutive months (in this case, as of June 30). Known as TTM, this metric looks at financial performance over the previous 12 months. It can give investors an updated picture of a company that is seasonally adjusted.

Losses mount for ForgeRock, but Q2 recurring revenue encouraging

Aug 9, 2023 – ForgeRock reports a net loss of $28.8 million, or $0.32 per basic and diluted share, on revenue of $58 million during the second quarter, ended June 30. This compares with a net loss of $22 million, or $0.26 a share, on revenue of $47.7 million for the same period last year.

Looking at the first half of the year, the digital identity company’s net loss was $54.2 million, or $0.62 per basic and diluted shares, on revenue of $121.4 million. This compares with a net loss of $38.8 million, or $0.46, on revenue of $95.8 million during the first half of 2022.

The company is spotlighting its Q2 annual recurring revenue, which was $251.3 million, 25 percent higher year over year. ARR, as the metric is known, is useful in gauging the strength of a subscription-based company including forecasting revenue.

Synaptics reports a Q4 gross margin of 44.5 percent

Aug 8, 2023 – Biometrics hardware vendor Synaptics has released its fourth quarter and fiscal 2023 financials.

For the quarter ended June 30, Synaptics reported a net loss of $23.4 million, or $0.59 per basic share on revenue of $227.3 million. That compares to net income of $82.9 million, or $2.09 per basic share, on revenue of $476.4 million for the same period last year.

The company’s quarterly gross margin was 44.5 percent.

Fiscal 2023, Synaptics reported net income of $73.6 million, $1.86 per share, on revenue of $1.4 billion. This compares with fiscal 2022, when the company said it registered net income$257.5 million, $6.60, on revenue of $1.7 billion.

Company executives say they anticipate a gross margin from 43.5 percent to 47.5 percent and revenue of $215 million to $245 million.

Synaptics launched a new fingerprint sensor during the quarter.

Idex chooses to leave the Nasdaq

July 21, 2023 –  Being listed on the Nasdaq exchange in the U.S. and the Oslo Bors in Norway is too expensive for fingerprint biometrics firm Idex, according to the company, which has decided to leave the Nasdaq. Idex’ American depository shares, each of which represent 75 ordinary shares, should be a thing of the past as of August 10.

Biometrics sales tiny but stable for Voxx

July 13, 2023 – One the few quarterly financial statistics that have remained unchanged year over year for ailing Voxx International is in biometrics products. Voxx, the majority owner of Eyelock, Inc., is primarily an international aftermarket supplier of automotive and maker of consumer electronics.

Posting its first-quarter 2024 results, the company reported that net sales of biometrics goods for the period ended May 31 was $100,000, the same as its first quarter in fiscal 2023.

Companywide, it recorded a widening loss. Voxx reported a net loss of $11.7 million, or $0.45 per basic and diluted share, on net sales of $111.9 million in the most recent quarter. This compares with a loss of $7.8 million, $0.27, on sales of $128.7 million for the same period a year ago.

CEO Pat Lavelle issued a statement: “We anticipate continued global softness and are in the process of realigning our operations, reducing our workforce and bringing down overhead to be profitable on lower sales volumes. New products and expanded distribution within our Consumer segment, and new vehicle models coming online in our Automotive segment should help offset some of the weakness, but we are expecting a weak global economy throughout 2023.”

Intercede revenue, profit rise for just-completed fiscal 2023

June 22, 2023 – Digital ID cybersecurity firm Intercede has reported an operating profit of £571,000 (US$727,810), or £0.023 per basic share ($0.029 per share), on revenue of £12.1 million ($15.4 million) for fiscal 2023, ended March 31. That compares with an operating profit of £390,000 ($497,100), £0.013 per share ($0.017) revenue of £9.9 million ($12.6 million).

The company says it has invested in the IT infrastructure backing its digital identity software, and that its financial position is strong and unleveraged.

GB Group fiscal ’23 revenue climbs as profit turns to a loss

June 16, 2023 – ID verifier GB Group reports a fiscal 2023 operating loss of £112.4 million (US$144.2 million) or £47.5p (or $.603) per share on statutory revenue of £278.8 million ($357.7 million). That compares with a fiscal 2022 operating profit of £23.4 million ($30 million) or £6.9p ($.086) on statutory revenue of £242.5 million ($310.7 million)

BIO-key belatedly files finance report for quarter ended in March

Authentication and IAM provider BIO-key has made itself right with the Nasdaq exchange. The company had been notified that it was in danger of being delisted due to delayed financial reporting. Executives said they are current with requirements. The problem arose when the compilation and review of “certain financial information could not be completed” in time.

Thales stirs its bonds, issues €500M fixed rate

June 9, 2023Thales is refinancing a 2016 bond that has matured with a new issue of €500 million (US$537 million) at a fixed rate of 3.626 percent that will mature in six years. The money also will improve the liquidity of the diversified multinational company with biometrics products.

Lead managers of the issue were BBVA, Commerzbank, Crédit Agricole Corporate & Investment Bank, Deutsche Bank, JP Morgan, Natixis and Unicredit.

The 2016 €3 billion bond issue was lead managed by the same firms arranging the new bond.

Another biometrics firm misses its Q1 financials report deadline

May 31, 2023 – 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, 2023Voxx 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.

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