BIO-key is seeing some losses in its newly-issued quarterly report, but is staying focused on the long game.
The quarter saw a year-over-year drop in revenues, which came in at $841,000, compared to a little over $1.4 million in Q1 of last year. In a statement announcing the results, BIO-key said the decline was “principally due to lower software license and hardware reader revenue,” though its new biometric locks helped to mitigate the drop.
BIO-key also saw a net loss for the quarter amounting to about $2.3 million, compared to a net loss of about $1.56 million in Q1 of last year.
Commenting on the results, BIO-key CEO Mike DePasquale emphasized that it is routine for the company to see quarterly fluctuations in its results “based on the timing of larger software and hardware agreements”. With that in mind, he said, “we continue to focus investors on full year results”; and to that point the company is maintaining its $8 million to $12 million revenue guidance for 2018.
The context should offer some reassurance to BIO-key stakeholders, especially given that its year-end results for 2017 showed a 110 percent jump in revenues. The company’s leadership has indicated that for the year ahead, it will focus its efforts on the ‘three pillars’ of expanding its OEM partnerships, focusing on the APAC market, and promoting its hardware solutions. A positive operations cash flow is anticipated for the full year.
May 16, 2018 – by Alex Perala