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Sep 30, 2020
Bio-key Q3 2020 Earnings Report
BIO-key reported Q3 revenue and cash position, highlighting the impact of the PortalGuard acquisition and progress in African contracts.
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.
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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