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Dec 31, 2020
Bio-key Q4 2020 Earnings Report
Q4 revenues doubled and 2020 revenues rose.
Key Takeaways
BIO-key International, Inc. reported a significant increase in Q4 revenue, doubling to $1.1M compared to Q4'19, and a 25% increase in 2020 revenue, reaching $2.8M. The company ended the year with a strong cash position of $17M following a strategic recapitalization and the acquisition of PistolStar/PortalGuard. BIO-key expects full year 2021 revenues to range between $8M and $12M.
Q4 revenue rose to $1.1M, a 99% increase over Q4'19 revenue of $0.5M.
2020 revenue increased by 25% to $2.8M, compared to $2.3M in 2019.
Gross margin improved to 71% in Q4'20, compared to a negative 25% in Q4'19.
Ended 2020 with $17.0M in cash and cash equivalents.
Bio-key
Bio-key
Forward Guidance
BIO-key anticipates significant growth across the business in fiscal year 2021, with expected revenues ranging from $8M to $12M. Profitability is expected within this revenue guidance range, depending on the mix of hardware and software revenues.
Positive Outlook
- Expects full year revenues to range between $8M and $12M.
- Channel Alliance Partner Program expected to be a key driver for long-term growth.
- Expects revenue of approximately $500K in Q1 with increasing activity throughout 2021 from biometric fingerprint scanners in support of initiatives in Nigeria.
- The addition of PortalGuard to the BIO-key family has bolstered in-house sales, marketing and R&D teams.
- Positioned to achieve profitability within revenue guidance range.
Challenges Ahead
- Possible upside related to the pace of African contracts, which remain difficult to project.
- Business development activity was somewhat curtailed most of the year as enterprises struggled with the challenges posed by the pandemic.
- COVID-19 related challenges and disruptions.
- Our ability to execute and deliver on contracts in Africa.
- Our ability to expand into Asia, Africa and other foreign markets.