BIO-key Reveals Strategic Move To AWS Marketplace Amid Q2 Revenue Challenges: Details

BIO-key International, Inc. BKYI announced that its PortalGuard IDaaS platform, featuring Identity-Bound Biometrics (IBB) authentication, is now available on the AWS Marketplace, expanding its global reach and customer base.

By listing on AWS Marketplace, BIO-key aims to simplify the integration of its advanced security solutions, allowing global customers to easily purchase and implement PortalGuard for enhanced identity management and digital security.

“By collaborating with AWS, we enable organizations to gain streamlined access to our top-tier technologies, helping them to address complex challenges with enhanced security and compliance,” commented Michael DePasquale, Chairman and CEO of BIO-key International, Inc.

Yesterday, BKYI reported second-quarter results, with revenues down to $1.14 million from $1.9 million year-over-year and below the consensus of $1.95 million. The company attributed the revenue decline to delayed software license fees generated by its European subsidiary and reduced project-related services revenue for one large customer.

Net loss for the quarter totaled $1.7 million, an improvement from the $2.6 million net loss a year ago, reflecting a $1 million hardware reserve in the previous year.

“Q2 was impacted by delays we experienced in the closing of approximately $450,000 in software license contracts and lower non-recurring, project-related services revenue of approximately $200,000 versus the year-ago period for one large customer in 2023,” commented Mike DePasquale, BIO-key CEO.

Gross profit rose to $0.9 million (77% margin) from $0.3 million (16.7% margin) a year ago, primarily due to the impact of hardware reserve in 2023 and higher gross margins from services in the second quarter of 2024. Operating expenses were reduced by $0.2 million.

Cash used in operating activities improved by 48% to $1.1 million in the first half of 2024 versus $2.1 million used in the same period of 2023. As of June-end, BIO-key had $3.0 million in current assets, including $1.3 million in cash.

“We continue to expect to benefit from the rollout and enforcement of increasingly stringent regulatory standards and cyber insurance underwriting requirements, much of which are now mandating multi-factor authentication or passwordless security solutions that BIO-key is well positioned to provide on a very competitive basis,” added DePasquale.

“Given our size, our performance will likely remain variable on a quarter to quarter and year over year basis, based on the impact and timing of customer contracts, though we remain confident in our ability to drive sequential growth on a full year basis. Importantly, we are building a growing base of high-margin annually recurring revenues (ARRs) with solid potential to expand as we move forward.”

Price Action: BKYI shares are trading flat at $1.34 at the last check Thursday.