BIO-key has issued its results for the second quarter of 2019, ended June 30th. The results reflect, to some extent, the impact of ongoing trade tensions between the US and China, alongside ongoing progress in BIO-key’s other business activities.
Revenues for the quarter came in at $728,383, a slight decline (2.7 percent) against Q2 revenues in 2018, but an increase over the company’s Q1 2019 revenues of $551,623. BIO-key’s net result for the quarter, meanwhile, was a loss of $1,425,743, an improvement over the net loss of $1,697,335 reported in Q2 of 2018.
A trend that has persisted from the previous quarter of this year is that of delayed payments from a major contract with a China-based customer. The issue had prevented BIO-key from receiving $1.1 million in revenues in Q1, with CEO Mike DePasquale citing poor US-China trade relations at the time as “a significant impediment in cross border commerce”.
This continues to impact BIO-key’s results, with the company now revising its revenue guidance for the 2019 fiscal year to somewhere in the range of $6 million to $12 million. “The upper end of the range assumes the receipt of all software license payments contractually due in 2019, totaling $6.0M, and the bottom end of the range excludes all such payments,” the company explained in a statement announcing its results.
Despite that issue, in commenting on the newly announced results, DePasquale was upbeat about BIO-key’s other business activities. “Our new sales and marketing initiatives are generating an increasing level of requests for demonstrations and proofs of concept from customers looking to incorporate the security and convenience of biometrics into their existing workflow,” he said, adding later, “During the second quarter, we advanced several new customer dialogues which provide promise for revenue in the second half of 2019.”
August 15, 2019 – by Alex Perala