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Sep 30, 2023
Bio-key Q3 2023 Earnings Report
BIO-key's Q3 revenues increased due to software license fees, services, and hardware sales.
Key Takeaways
BIO-key International, Inc. reported a 30% increase in Q3 revenue to $1.8 million compared to $1.4 million in Q3 2022. The company's gross profit also improved by 40% to $1.4 million, and the net loss per share was reduced by approximately 72% to ($0.08).
Revenue rose over 30% to $1.8M vs. $1.4M in Q3’22.
Gross profit improved more than 40% to $1.4M vs. $1.0M in Q3’22.
Q3’23 operating loss improved to approximately ($750,000) vs. an operating loss of ($2.4M) in Q3’22.
Q3’23 net loss per share reduced approximately 72% to ($0.08) vs. ($0.29) in Q3’22.
Bio-key
Bio-key
Forward Guidance
BIO-key anticipates top-line and bottom-line improvements, driven by the value proposition of its authentication solutions and the increasing need for multi-factor authentication due to cyber-insurer scrutiny and SEC regulations. Q4 is historically a strong quarter, and the company is confident about continued growth and improved bottom-line performance in 2024.
Positive Outlook
- BIO-key is well positioned to deliver solid top-line and bottom-line improvements going forward.
- The market is ripe for a phoneless, tokenless passwordless FIDO passkey authentication option for manufacturing, retail, call center, and other roving workforces.
- Q4 tends to be one of BIO-key's strongest quarters each year in terms of business volume.
- Significant recent commitment from a long-standing international defense ministry customer, for additional software and hardware.
- Working to convert certain inventories into cash while also pursuing operating expense reduction opportunities, including relocating headquarters.
Challenges Ahead
- The review of BIO-key's Q3 FY2023 financial statements has not been completed by its independent registered public accounting firm as of the date of this press release and are therefore subject to change.
- BIO-key had current assets of $7.9M, including $0.3M of cash and cash equivalents, $2.9M of accounts receivable, and $4.3M of inventory at September 30, 2023.
- Working capital requirements.
- Converting certain inventories into cash.
- Pursuing operating expense reduction opportunities, including relocating headquarters.