Follow-on orders for BIO-key biometrics raise hopes for turn to profitability

Expanding biometrics deployments and follow-on orders are contributing to lower net losses at BIO-key, and fueling optimism for the company to reach profitability within the next several quarters.

The Canadian Province of British Columbia is adding 10,000 more users to its deployment of BIO-key’s WEB-key software to support identity federation and biometric authentication for a new set of applications. WEB-key is being integrated with Broadcom’s SiteMinder infrastructure for use by government employees who sign into the applications from different workstations.

The provincial government began using BIO-key’s fingerprint biometric authentication technology in 2012, and expanded its deployment in 2017.

Also, a defense ministry for an unnamed country has placed $500,000 in new orders for biometric authentication technology, under a three-year purchasing agreement. The ministry, which BIO-key calls “one of the world’s most respected government defense ministries,” intends to expand its use of biometrics to new programs and use cases, bringing passwordless authentication to more than 33,000 users without requiring phones or physical tokens.

The ministry has integrated BIO-key’s “Identity Bound Biometrics” with its virtual desktop infrastructure, according to the company announcement.

It is at least the second follow-on order from the defense ministry, following an initial deal back in 2018.

“BIO-key’s relationship with this innovative customer continues to expand, as does interest from the defense vertical in general,” says BIO-key SVP Strategy and Chief Legal Officer Jim Sullivan. “This is one of the most discriminating buyers of security technology worldwide.”

Third quarter improvements

During the quarter that just ended, BIO-key reports an 18 percent increase in revenues on a year-over-year basis to $2.1 million. Software licenses generated $0.5 million more than a year earlier, with long-term customers expanding their deployments.

Operating expenses were also slightly down, contributing to a net loss of $0.7 million in the third quarter of 2024. That was a big improvement from a net loss of $1.8 million in Q3 2023.

BIO-key also raised $1.9 million during the third quarter through a warrant inducement agreement, with an existing investor purchasing just over a million shares at $1.85 each.

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BIO-key  |  biometric authentication  |  biometrics  |  financial results  |  fingerprint biometrics  |  stocks