NASDAQ$BKYI

Bio-key International Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

BIO-key's Q3 revenues increased due to software license fees, services, and hardware sales.

BIO-key International, Inc. reported a 30% increase in Q3 revenue to $1.8 million compared to $1.4 million in Q3 2022. The company's gross profit also improved by 40% to $1.4 million, and the net loss per share was reduced by approximately 72% to ($0.08).

  • Revenue rose over 30% to $1.8M vs. $1.4M in Q3’22.
  • Gross profit improved more than 40% to $1.4M vs. $1.0M in Q3’22.
  • Q3’23 operating loss improved to approximately ($750,000) vs. an operating loss of ($2.4M) in Q3’22.
  • Q3’23 net loss per share reduced approximately 72% to ($0.08) vs. ($0.29) in Q3’22.

Headline financials

Total Revenue

$1.82M

Previous: $1.37M+32.3%
EPS (adj)

-$1.44

Previous: -$5.22+72.4%
Gross Margin

77.0%

No prior period
Capital Expenditures

$0.00

Previous: -$31.1K+100.0%
Free Cash Flow

-$2.26M

Previous: -$4.36M+48.1%
Net Income

-$638K

Previous: -$2.4M+73.5%
Operating Income

-$766K

Previous: -$2.36M+67.6%
Gross Profit

$1.34M

Previous: $980K+36.8%
Cash & Equivalents

$307K

Previous: $2.77M-88.9%
Total Assets

$9.75M

Previous: $15M-35.1%
R&D Expense

$559K

No prior period

Revenue & EPS history

Bio-key · Revenue · Quarterly

$1.82M

Q3 2023+32.3%vs Q3 2022
Beat estimate in 4 of 14 quarters(29%)
ActualEstimate

Forward guidance

BIO-key anticipates top-line and bottom-line improvements, driven by the value proposition of its authentication solutions and the increasing need for multi-factor authentication due to cyber-insurer scrutiny and SEC regulations. Q4 is historically a strong quarter, and the company is confident about continued growth and improved bottom-line performance in 2024.

Tailwinds

  • BIO-key is well positioned to deliver solid top-line and bottom-line improvements going forward.
  • The market is ripe for a phoneless, tokenless passwordless FIDO passkey authentication option for manufacturing, retail, call center, and other roving workforces.
  • Q4 tends to be one of BIO-key's strongest quarters each year in terms of business volume.
  • Significant recent commitment from a long-standing international defense ministry customer, for additional software and hardware.
  • Working to convert certain inventories into cash while also pursuing operating expense reduction opportunities, including relocating headquarters.

Headwinds

  • The review of BIO-key's Q3 FY2023 financial statements has not been completed by its independent registered public accounting firm as of the date of this press release and are therefore subject to change.
  • BIO-key had current assets of $7.9M, including $0.3M of cash and cash equivalents, $2.9M of accounts receivable, and $4.3M of inventory at September 30, 2023.
  • Working capital requirements.
  • Converting certain inventories into cash.
  • Pursuing operating expense reduction opportunities, including relocating headquarters.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-3.5%

Avg return

Earnings day

-5.3%

Avg return

5 days after

-8.9%

Avg return

30 days after

25%

16 / 63 earnings

Positive

+15.9%

Q1 2017

Best reaction

-25.9%

Q3 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.7%
Q3 2025-2.2%-4.1%-27.8%
Q1 2025-6.0%-2.5%-2.5%
Q2 2025-1.3%-3.7%-4.9%
Q4 2024-23.6%+2.4%-6.0%
Q3 2024-8.7%-16.5%-5.8%
Q2 2024-12.0%-12.0%+8.5%
Q1 2024-11.8%-10.0%+5.9%
Q4 2025-4.1%-9.5%-15.0%
Q4 2023-4.8%-13.8%-19.0%
Q3 2023-10.6%-15.8%-10.5%
Q2 2023-10.0%-10.0%-27.1%
Q1 2023+5.3%+21.5%+13.8%
Q4 2022-3.0%+8.2%-9.6%
Q3 2022-17.4%-27.1%-45.1%
Q2 2022-17.0%-22.6%-27.6%
Q1 2022-2.0%-6.0%-17.9%
Q4 2021-3.2%-6.0%-14.0%
Q3 2021-8.2%-10.8%-27.5%
Q2 2021-7.4%-5.5%+3.5%
Q1 2021+6.1%+8.4%+32.3%
Q4 2020+2.9%-0.9%-2.6%
Q3 2020-8.7%-4.4%-3.3%
Q2 2020+1.1%-1.4%-36.5%
Q4 2019-24.2%-20.7%-9.8%
Q3 2019-9.2%-12.1%+0.0%
Q2 2019+1.8%-6.8%-29.5%
Q1 2019-6.2%-16.9%-13.1%
Q4 2018-6.8%-4.8%-9.5%
Q3 2018+11.1%+9.3%+13.9%
Q2 2018-2.2%-2.2%-10.4%
Q1 2018-11.0%-1.3%-0.9%
Q4 2017-6.5%+2.0%+7.6%
Q3 2017-10.8%-6.1%-29.1%
Q2 2017-3.1%-4.3%-10.6%
Q1 2017+15.9%+22.0%+17.5%
Q4 2016-7.8%-5.1%-14.1%
Q3 2016-25.9%-7.4%-18.5%
Q2 2016+0.0%-4.2%+8.3%
Q1 2016-5.9%
Q4 2015+0.0%
Q3 2015+0.0%
Q2 2015+5.6%
Q1 2015+0.0%
Q4 2014+0.0%
Q3 2014+0.0%
Q2 2014+0.0%
Q1 2014-3.7%
Q4 2013+7.7%
Q3 2013-10.5%
Q2 2013+3.0%
Q1 2013+9.1%
Q4 2012+0.0%
Q3 2012+14.3%
Q1 2012+14.3%
Q4 2011-9.1%
Q3 2010-15.4%
Q3 2011-15.4%
Q2 2010+9.1%
Q2 2011+9.1%
Q1 2011-6.7%
Q4 2010+0.0%
Q1 2010+0.0%

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