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BIO-key International Inc (BKYI)
NASDAQ:BKYI
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BIO-key International
(NASDAQ:BKYI)
54Neutral
Positive Factors
Earnings
BKYI reported better-than-expected 3Q24 results with revenue of $2.1M, above the estimate.
Growth Potential
Management expects 2024 revenue to meet or exceed the $7.75M revenue achieved in 2023, indicating growth potential.
Product Innovation
BKYI recently entered the passkey authentication market with the launch of a unique password-less authentication solution.
Negative Factors
Delayed Orders
The primary reason for the revenue miss was due to a delayed $450K order that slipped into 3Q24.
Revenue Estimates
Lower 2024 and 2025 revenue and EBIT estimates based on management commentary and continued macro challenges.
BIO-key International (BKYI) vs. S&P 500 (SPY)
Market Cap
$2.54M
Dividend YieldN/A
Average Volume (3M)342.48K
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth-25.57%
EPS Growth51.54%
CountryUS
Employees43
SectorIndustrials
Sector Strength66
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)-2.23
Shares Outstanding3,127,049
10 Day Avg. Volume320,796
30 Day Avg. Volume342,478
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.52
Price to Cash Flow (P/CF)-0.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.00Price Target Upside279.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
BIO-key International Business Overview & Revenue Model
Company DescriptionBIO-key International, Inc. develops and markets fingerprint identification biometric technology and software solutions, and enterprise-ready identity access management solutions for commercial, government, and education customers in the United States and internationally. The company offers BIO-key PortalGuard and PortalGuard IDaaS solutions, a customer-controlled and neutral-by-design cloud-based identity platform that allows customers to integrate with any cloud or on-premises SaaS application, as well as windows device authentication through IAM platform. Its solutions enable its customers to secure their workforces and student populations; and make their partner networks more collaborative. In addition, it provides BIO-key VST and WEB-key products; and Civil and Large-Scale ID Infrastructure solutions that develops finger-based biometric technology. Further, it offers finger scanners for enterprise and consumer markets under SideSwipe, EcoID, and SidePass brand names. The company was formerly known as SAC Technologies and changed its name to BIO-key International, Inc. in 2002. BIO-key International, Inc. was founded in 1993 and is headquartered in Wall, New Jersey.
How the Company Makes MoneyBIO-key International generates revenue primarily through the sale of its biometric software and hardware products, which are marketed to businesses and governmental organizations seeking robust security solutions. The company's key revenue streams include direct sales of biometric authentication devices, licensing fees from its software solutions, and ongoing maintenance and support services. Significant partnerships with technology integrators and cybersecurity firms also contribute to its earnings by expanding market reach and integrating BIO-key's solutions into broader security frameworks.
BIO-key International Financial Statement Overview
Summary
BIO-key International faces considerable financial challenges with persistent losses, declining revenues, and high leverage. Income statement issues include a negative net income and declining revenue. The balance sheet is weakened by high leverage and minimal equity. Cash flow analysis indicates operational cash burn, though there's some alignment between cash flow and earnings.Income Statement
The income statement shows significant challenges. The company has negative net income and EBIT, indicating profitability issues. Revenue has declined from the previous year, leading to a negative revenue growth rate of -17.56% for the TTM. Gross profit margin is low at 14.78%, and net profit margin is deeply negative, showcasing a struggle to manage costs relative to revenue.41
Neutral
Balance Sheet
The balance sheet is under pressure with a debt-to-equity ratio of 18.53, indicating high leverage. The equity ratio has drastically declined to 2.08%, reflecting a weakened equity position. Return on equity is negative due to losses, further signaling financial instability. The company holds minimal equity against its liabilities.35
Negative
Cash Flow
Cash flow analysis reveals negative operating and free cash flows, indicating cash burn operationally. However, the operating cash flow to net income ratio is 0.43, showing some alignment between cash flow and reported earnings. Financing activities have been necessary to cover cash shortfalls.45
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 6.39M | 7.75M | 7.02M | 5.11M | 2.84M | 2.27M | Gross Profit |
| 944.77K | 1.43M | 4.98M | 3.44M | 2.04M | -193.72K | EBIT |
| -9.27M | -8.83M | -9.69M | -5.00M | -4.86M | -6.56M | EBITDA |
| -8.70M | -7.85M | -11.37M | -4.53M | -4.90M | -12.38M | Net Income Common Stockholders |
| -9.09M | -8.52M | -10.74M | -4.57M | -13.59M | -14.65M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 487.97K | 511.40K | 2.64M | 7.75M | 17.51M | 591.83K | Total Assets |
| 6.36M | 4.52M | 11.91M | 17.77M | 22.52M | 2.50M | Total Debt |
| 381.65K | 365.35K | 2.22M | 264.16K | 730.47K | 2.82M | Net Debt |
| -106.32K | -146.05K | -414.09K | -7.49M | -16.26M | 2.74M | Total Liabilities |
| 4.39M | 3.45M | 4.85M | 2.19M | 2.19M | 4.78M | Stockholders Equity |
| 1.96M | 1.06M | 7.06M | 15.58M | 20.34M | -2.29M |
| Cash Flow | Free Cash Flow | ||||
| -3.96M | -3.79M | -6.31M | -9.02M | -4.99M | -1.88M | Operating Cash Flow |
| -3.93M | -3.79M | -6.23M | -8.98M | -4.95M | -1.85M | Investing Cash Flow |
| -24.05K | -1.00K | -696.62K | -42.02K | -2.23M | -543.31K | Financing Cash Flow |
| 5.22M | 1.43M | 1.90M | -218.60K | 24.09M | 2.15M |
BIO-key International Technical Analysis
Negative
0.79
Price Trends
1.22
Negative
1.20
Negative
1.25
Negative
Market Momentum
-0.06
Positive
32.91
Neutral
31.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BKYI, the sentiment is Negative. The current price of 0.79 is below the 20-day moving average (MA) of 1.06, below the 50-day MA of 1.22, and below the 200-day MA of 1.25, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 32.91 is Neutral, neither overbought nor oversold. The STOCH value of 31.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BKYI.
BIO-key International Risk Analysis
BIO-key International disclosed 32 risk factors in its most recent earnings report. BIO-key International reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BIO-key International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $8.06B | 13.61 | 3.91% | 3.11% | 3.80% | -14.06% | |
54 Neutral | $2.54M | ― | -186.32% | ― | -25.57% | 51.54% | |
40 Underperform | $7.46M | ― | -438.89% | ― | -34.10% | 21.62% | |
38 Underperform | $2.97M | ― | -328.90% | ― | -31.26% | -19.68% | |
31 Underperform | $3.80M | ― | 220.90% | ― | -69.75% | 2.25% |
* Industrials Sector Average
Performance Comparison
BKYI
BIO-key International
0.79
-1.21
-60.50%
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0.19
-5.91
-96.89%
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AgriFORCE Growing Systems
1.10
-15.56
-93.40%
DFLI
Dragonfly Energy Holdings Corp
0.98
-3.48
-78.03%
SMX
SMX Public Limited Company
1.61
-316.88
-99.49%
XPON
Expion360, Inc.
0.94
-247.06
-99.62%
BIO-key International Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: -29.46% | Next Earnings Date: May 14, 2025
Earnings Call Sentiment Neutral
The earnings call revealed a strategic shift towards higher-margin products, resulting in improved gross profit and margin. Despite a decline in total revenue due to exiting low-margin services, the company is showing promising growth prospects for 2025 with increased demand for its IAM solutions and several strategic partnerships. However, the decline in hardware and service revenue presents challenges that need addressing.Highlights
Increased Gross Profit and Margin
BIO-key's gross profit rose to $5.4 million in 2024, an 8% increase, with an adjusted gross margin of 78% compared to 64% in 2023.
License Revenue Growth
High-margin software license fee revenue increased by 20% to $5.2 million in 2024.
Reduced Cash Burn and Expenses
Operating expenses were reduced by 6% in 2024, and cash burn was trimmed by 23% to $2.9 million.
Contract Wins and Strategic Partnerships
Secured a $910,000 contract with a foreign financial services client and a significant partnership with the National Bank of Egypt.
Strong Start to 2025
Encouraging order activity and customer interest in 2025, with an emphasis on passwordless, phoneless, and tokenless IAM solutions.
Lowlights
Overall Revenue Decline
Total revenue decreased by 11% to $6.9 million in 2024 due to exiting a low-margin services agreement.
Decline in Hardware and Service Revenue
Service revenue declined to $1.1 million from $2.2 million, and hardware revenue fell from $1.2 million in 2023 to $632,000 in 2024.
Company Guidance
During BIO-key International's 2024 Fourth Quarter Conference Call, the company reported a strategic pivot that resulted in significant financial changes. They strengthened their financial position with approximately $3.8 million from a warrant exercise and reduced outstanding debt to $730,000 from $1.5 million. License fee revenue increased by 20% to $5.2 million, contributing to a gross profit rise of 8% to $5.4 million, achieving an adjusted gross margin of 78% compared to 64% in 2023. However, total revenue declined by 11% to $6.9 million due to exiting a low-margin software relationship. Operating expenses were reduced by 6%, and cash burn was trimmed by 23% to $2.9 million. The company is optimistic about 2025, citing encouraging order activity, a strong presence in international defense, and a strategic focus on core solutions like PortalGuard IAM and identity-bound biometrics. They project growth in hardware and services revenue and intend to leverage partnerships and market expansions to drive growth and profitability.BIO-key International Corporate Events
M&A TransactionsBusiness Operations and Strategy
BIO-key International Expands with Strategic Agreement and Disclosure
Positive
Dec 3, 2024
BIO-key International has entered a strategic agreement with Fiber Food Systems to enhance security and efficiency in the food tech sector by exchanging shares and integrating identity access management solutions. The collaboration is expected to boost BIO-key’s balance sheet by $5 million and leverage their biometric-centric IAM technology to improve operational efficiency in high-traffic environments like school cafeterias, setting new standards for secure access and data protection.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.