BIO-key International has announced its quarter one results, painting a picture of a company positioning itself for the year. While BIO-key has been keen to build its business relationships, it posted losses exceeding those of a year ago.
More specifically, the company posted a net loss of $924,000, a substantial increase over its losses of $299,000 in Q1 of 2014. BIO-key’s revenues were down as well, dropping from $1,368,000 a year ago to $649,000. CEO Michael DePasquale explained in a press release that the company’s sales performance for the quarter “reflects the deal-driven nature of our software licensing efforts and was in-line with our anticipated range,” and emphasized that, with the company’s efforts to build partnerships and demand for its new EcoID finger scanner, “we are on target to achieve our full year revenue guidance of five to seven million dollars and expect to demonstrate the strength of our sales effort in our Q2 performance.”
The Q1 figures are disappointing with respect to the optimism around the company’s major increase in revenues in Q4, but the downturn may indeed reflect a cyclical aspect of the business. In any case, it is true that BIO-key has been busy securing partnerships, as in the case of global IT distributor Avnet, while continuing to win new clients. And the EcoID scanner, introduced in March, could bring in much more revenue if it succeeds in BIO-key’s aim of disrupting the market with its portability and extremely low price.