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Mar 31, 2021

Bio-key Q1 2021 Earnings Report

BIO-key's Q1 revenues improved due to growth in license and hardware revenue.

Key Takeaways

BIO-key International, Inc. reported a significant increase in Q1 2021 revenue, growing to $1.8 million from $0.5 million in Q1 2020. This growth was driven by more than 100% increase in license revenue and a 1193% increase in hardware revenue, including $680k from African projects. The company's net loss decreased to $0.7 million, or ($0.09) per share, compared to a net loss of $3.5 million, or ($1.84) per share in the previous year.

Q1 revenue grew significantly to $1.8M from $522k in Q1 2020, driven by increases in license and hardware revenue.

Gross profit increased 182% to $1.1M from $0.4M in Q1 2020, while gross margin decreased to 59.4% due to a higher proportion of hardware sales.

BIO-key commenced initial technology deployments for its large-scale ID projects in Africa, recording hardware revenue of $680k in Q1.

The company secured a $1.2M, three-year contract extension from a Fortune 500 telecommunications customer.

Total Revenue
$1.89M
Previous year: $522K
+261.5%
EPS
-$1.62
Previous year: -$28.8
-94.4%
Gross Margin
59.4%
Gross Profit
$1.1M
Cash and Equivalents
$13.5M
Free Cash Flow
-$3.21M
Total Assets
$17.8M

Bio-key

Bio-key

Bio-key Revenue by Segment

Forward Guidance

BIO-key is on-track to achieve its full-year revenue guidance of $8M to $12M, with potential upside, particularly related to its African contracts.

Positive Outlook

  • Company has the right team in place.
  • Company has a broad suite of solutions.
  • Company has a strong balance sheet.
  • Company has the resources needed to drive growth.
  • Company is on-track to achieve full year revenue guidance of $8M to $12M.

Challenges Ahead

  • Pace and timing of African contracts remain difficult to predict.

Revenue & Expenses

Visualization of income flow from segment revenue to net income