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BIO-key(BKYI) - 2025 Q1 - Quarterly Results
BKYIBIO-key(BKYI)2025-05-15 20:46

Revenue Performance - Q1'25 revenue decreased to 1.6Mfrom1.6M from 2.2M in Q1'24, a decline of approximately 26% year-over-year[10] - License fee revenue fell to 1.1MinQ1′25from1.1M in Q1'25 from 1.95M in Q1'24, reflecting a significant impact from a 1.2McontractinQ1′24[10]−Servicerevenuesincreasedby281.2M contract in Q1'24[10] - Service revenues increased by 28% to 272.6K in Q1'25 from 213.1KinQ1′24,drivenbya37213.1K in Q1'24, driven by a 37% rise in recurring maintenance and support revenue[11] - Hardware sales surged to 235.8K in Q1'25 from 17.6KinQ1′24,attributedtoincreasedpurchasesoffingerprintbiometricscanners[12]FinancialMetrics−GrossmarginforQ1′25was82.617.6K in Q1'24, attributed to increased purchases of fingerprint biometric scanners[12] Financial Metrics - Gross margin for Q1'25 was 82.6%, down from 86.3% in Q1'24, due to lower revenue and higher lower-margin hardware sales[13] - Operating expenses decreased by 17.7% to 1.97M in Q1'25 from 2.39M in Q1'24, with SG&A expenses down 23%[14] - Net loss for the three months ended March 31, 2025, was 736,545, compared to a net loss of 510,285forthesameperiodin2024,reflectinga44.3510,285 for the same period in 2024, reflecting a 44.3% increase in losses[25] - Total current liabilities decreased to 3,465,616 from 4,553,536,areductionof244,553,536, a reduction of 24%[23] - Total stockholders' equity increased to 7,527,053 from 3,772,031,showingagrowthof993,772,031, showing a growth of 99%[23] - Deferred revenue increased to 928,291 from 773,267,indicatingagrowthof20.1773,267, indicating a growth of 20.1%[23] - Net cash used in operating activities was 835,312, compared to a net cash provided of 297,084intheprioryear,indicatingashiftincashflowdynamics[25]CashPosition−Cashpositionimprovedto297,084 in the prior year, indicating a shift in cash flow dynamics[25] Cash Position - Cash position improved to 3.1M as of March 31, 2025, compared to 438Kattheendof2024[16]−Cashandcashequivalentsrosesignificantlyto438K at the end of 2024[16] - Cash and cash equivalents rose significantly to 3,133,752, up from 437,604,markinga615.5437,604, marking a 615.5% increase[25] - The company reported a net increase in cash and cash equivalents of 2,696,148 for the period, compared to an increase of 179,049inthepreviousyear[25]−Proceedsfromtheexerciseofwarrantsamountedto179,049 in the previous year[25] - Proceeds from the exercise of warrants amounted to 3,813,057, a significant increase compared to 1,400inthepreviousyear[25]GrowthExpectations−Thecompanyexpectssignificantrevenuegrowthfromalong−termfinancialservicescustomerstartingin2026duetoexpandeddeployments[2]−BIO−keyisfocusingonexpandingitspresenceintheEMEAregion,anticipatingimprovedrevenueandmarginsin2025[8]−Thecompanyservesover100institutionswithmorethan4Mendusersinthestate,local,andeducationalmarkets[6]AssetManagement−Totalassetsincreasedto1,400 in the previous year[25] Growth Expectations - The company expects significant revenue growth from a long-term financial services customer starting in 2026 due to expanded deployments[2] - BIO-key is focusing on expanding its presence in the EMEA region, anticipating improved revenue and margins in 2025[8] - The company serves over 100 institutions with more than 4M end users in the state, local, and educational markets[6] Asset Management - Total assets increased to 11,183,676 from 8,615,560,representingagrowthof29.58,615,560, representing a growth of 29.5% year-over-year[23] - Inventory levels decreased slightly to 357,842 from $378,307, a decline of 5.4%[23]