“Importantly, 2018 marked a significant year of progress for BIO-key both in terms of new business productivity and developing predictable and recurring revenue opportunities for our core biometric software technology for 2019 and beyond.” – Mike DePasquale, CEO, BIO-key
BIO-key has changed things up with its latest fiscal update, adopting a new GAAP approach to revenue recognition that records payments as they are received.
This has led to a somewhat complex picture, with BIO-key CEO Mike DePasquale noting in a statement that the company saw one of its biggest software license contracts ever in the fourth quarter of 2018, at $5 million, yet only $1.1 million of the deal has been recorded, with the remainder expected to come in during 2019. The advantage, though, is that “the deferral of revenue recognition until payments are received will allow for more predictable, consistent quarterly performance,” DePasquale explained.
As for the results themselves, Q4 revenues were recorded at $1.7 million, compared to $3.1 million in Q4 of 2017, and BIO-key saw a net loss of $1.4 million for the quarter, compared to a net income of $0.5 million a year ago. For the full year, revenues came in at $4 million for 2018, compared to $6.3 million in 2017; and 2018 delivered a net loss of $6.9 million, compared to a net loss of $4.3 million in 2017.
Again, there’s more money due to come in during 2019, with BIO-key noting that its major recent contract, with a China-based firm “focused on the technology and financial services industries in Asia,” will deliver monthly payments of $555,000. BIO-key’s overall revenue guidance for 2019 is in the range of $11 million to $14 million, suggesting the fingerprint biometrics specialist expects a bright future as the year unfolds.
April 3, 2019 – by Alex Perala