Q4 2024 BIO-Key International Inc Earnings Call Transcript
Key Points
- BIO-key International Inc (BKYI) significantly strengthened its financial position by reducing outstanding debt from approximately $1.5 million to $730,000.
- The company increased high-margin software license fee revenue by 20% to $5.2 million in 2024.
- Gross profit rose 8% to $5.4 million, with an adjusted gross margin of 78% compared to 64% in 2023.
- BIO-key International Inc (BKYI) reduced operating expenses by 6% and trimmed cash burn by 23% in 2024.
- The company secured a $910,000 contract with a foreign financial services client and expanded its deployment with a defense ministry, indicating strong customer interest and growth potential.
- Overall revenue declined by 11% to $6.9 million in 2024 due to the exit from a low-margin services agreement with Swivel Secure.
- Service revenue decreased to $1.1 million from $2.2 million in 2023, and hardware revenue also declined.
- The transition away from Swivel Secure resulted in revenue headwinds, impacting the company's short-term financial performance.
- Despite improvements, BIO-key International Inc (BKYI) reported a net loss of $4.3 million in 2024, though this was an improvement from the previous year.
- The company faces challenges in the cybersecurity market, including the need to address growing cybersecurity vulnerabilities and the shortage of cybersecurity talent.
Good morning, everyone. Thank you for standing by, and welcome to BIO-key International's 2024 fourth quarter conference call. (Operator Instructions). As a reminder, this conference is being recorded today, Thursday, March 27, 2025.
I will now turn the call over to Bill Jones, Investor Relations. You may proceed.
Thank you, Rocco. Today, our host are BIO-key's Chairman and CEO. Mike DePasquale; and its CFO, Cecilia Welch. As a reminder, today's conference call and webcast as well as answers to investor questions include forward-looking statements, which are subject to risks and uncertainties that may cause actual results to differ materially from current expectations. Words including anticipate, believe, estimate, expect, plan, project, or similar words generally express and identify forward-looking statements.
Such statements are made based on management's beliefs, assumptions, and information currently available, as of today, pursuant to the safe harbor provisions of the Private
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