Bio-key Q3 2020 Earnings Report
Key Takeaways
BIO-key reported a significant increase in Q3 revenue, driven by the acquisition of PortalGuard, and ended the quarter with a strong cash position due to a public offering. The company is also seeing progress in its African contracts and expects continued improvement in Q4.
BIO-key's Q3 revenue more than doubled year-over-year to $943K, driven by the PortalGuard acquisition.
The company ended Q3 with $18.4M in cash following a $24.8 million public offering.
PortalGuard saw strong traction, particularly within higher education institutions.
Initial progress was made on large projects in Nigeria, with anticipated orders expected in Q4.
Bio-key
Bio-key
Bio-key Revenue by Segment
Forward Guidance
BIO-key expects Q4 performance to continue to improve from Q3 levels, with continued momentum into FY 2021.
Positive Outlook
- Continued momentum into FY 2021.
- Expected orders of $650K for an initial deployment in Africa in Q4.
- Normalization of business activity following COVID-19 related challenges.
- First contract in Nigeria is an approximate $45M project.
- Building out BIO-key Africa subsidiary to support growth objectives.
Challenges Ahead
- Lingering business development challenges posed by the COVID-19 pandemic.
- Projects in Nigeria have been delayed due to the COVID-19 pandemic, and more recently some civil unrest.
- Civil unrest in Nigeria.
- Economic disruption from the pandemic.
- Telecommunications project in Africa is now slated to start in 2021 instead of Q4 2020.
Revenue & Expenses
Visualization of income flow from segment revenue to net income