HOLMDEL, N.J. - BIO-key International, Inc. (NASDAQ: NASDAQ:BKYI), a provider of identity and access management solutions, has secured a $910,000 order from a longstanding financial services client to upgrade to its "fingerprint only" biometric customer identification technology. This order is part of the client's ongoing efforts to enhance customer verification processes, which currently cover over 25 million enrolled individuals.
The upgraded technology will enable the financial institution to identify clients with a simple fingerprint scan, eliminating the need for additional identification such as a card or account number. The anticipated result is a reduction of approximately thirty seconds per client interaction. The financial services firm plans to implement the BIO-key technology for all its users, aiming to improve the efficiency of client experiences with the company's verification solutions.
BIO-key's solution will be hosted on Amazon (NASDAQ:AMZN) Web Services (AWS) to meet the technical demands of real-time, scalable biometric identification. The company anticipates that, following the full deployment of the technology in 2025, it will generate an estimated $1.4 million in annual recurring revenue from this customer.
Jim Sullivan, BIO-key’s SVP of Strategy and CLO, remarked on the upgrade's potential to enhance user experience and save time during client interactions. He highlighted BIO-key's accuracy and search speed as key factors enabling this advancement in customer engagement. Sullivan also noted plans to release a detailed whitepaper on the deployment in collaboration with AWS to help other enterprises understand the benefits of BIO-key's biometric identity solutions.
BIO-key is known for its multi-factor identity and access management software, which secures access for over forty million users worldwide. The company offers a range of authentication factors, including biometric options that do not require phones, tokens, or passwords.
The information in this article is based on a press release statement from BIO-key International, Inc.
In other recent news, BIO-key International reported a decrease in Q2 2024 revenues to $1.1 million, down from $1.9 million the previous year. This was attributed to delays in software license contracts and the non-renewal of a significant maintenance contract. However, the company's net loss improved to $1.7 million from $2.6 million.
BIO-key has expanded its biometric services with the government of British Columbia, adding 10,000 users to their existing deployment of BIO-key's WEB-key software. The company also secured an order exceeding $500,000 from a government defense ministry, expanding its biometric user authentication solution to support over 33,000 users.
The company has also secured approximately $1.9 million through an agreement with an institutional investor for the exercise of warrants, with Maxim (NASDAQ:MXIM) Group LLC serving as the exclusive placement agent for this transaction.
In other company news, BIO-key's shareholders approved the board members and auditor at the Annual Meeting. The elected board members include Michael W. DePasquale, Wong Kwok Fong (Kelvin), Robert J. Michel, Emmanuel Alia, and Cameron E. Williams. Bush & Associates CPA LLC was ratified as BIO-key's independent registered public accounting firm for the upcoming fiscal year.
These are recent developments that demonstrate the company's resilience and potential for future growth.
InvestingPro Insights
While BIO-key International's recent $910,000 order and the potential for $1.4 million in annual recurring revenue by 2025 are positive developments, investors should be aware of some concerning financial metrics. According to InvestingPro data, BIO-key's revenue for the last twelve months as of Q2 2024 was $6.96 million, with a revenue growth of -3.86%. This aligns with an InvestingPro Tip indicating that analysts anticipate a sales decline in the current year.
The company's financial health also raises some red flags. An InvestingPro Tip warns that BIO-key may have trouble making interest payments on debt, and another suggests the company is quickly burning through cash. This is reflected in the company's operating income margin of -98.39% for the last twelve months as of Q2 2024.
Despite these challenges, BIO-key's stock is trading at a low revenue valuation multiple, which could be of interest to value-oriented investors. However, it's worth noting that the stock has experienced significant price declines, with a one-year price total return of -82.58% as of the latest data.
For a more comprehensive analysis, InvestingPro offers 15 additional tips on BIO-key International, providing investors with a deeper understanding of the company's financial situation and market performance.
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