MADRID and MUMBAI, India, Jan. 29, 2026 (GLOBE NEWSWIRE) -- BIO-key International, Inc. (NASDAQ: BKYI), a global leader in Identity and Access Management (IAM) and biometric authentication solutions, today announced the planned launch of a Mumbai office, its first in India. This new presence will be staffed by a local team and supported by a newly formed partnership with Citadel Global, a trusted value-added distributor (VAD) with deep expertise in national and enterprise-scale cybersecurity and identity so ...

Shares of BIO-key International, Inc (BKYI) are up around 40% in pre-market trading Wednesday after the company announced a significant contract win in Portugal to secure digital identities across a large municipal ecosystem. BIO-key and its strategic partner Visualforma have been awarded a deployment mandate to modernize digital identity and access management for one of Portugal's major municipalities, marking a meaningful expansion of BIO-key's footprint in the European public sector. The partnership sup ...

Core Insights - BIO-key International, Inc. has formed a strategic partnership with Visualforma to enhance digital identity and access management for Portuguese municipal councils, focusing on cybersecurity and public digital services [1][5][7] Group 1: Partnership Details - Visualforma will spearhead the nationwide implementation of BIO-key's Identity and Access Management (IAM) and biometric authentication technologies across over 250 government organizations in Portugal [2] - The partnership aims to secure access to critical digital services, enhance cybersecurity controls, and ensure regulatory compliance within municipal administrations, educational institutions, and healthcare entities [2][4] Group 2: Implementation and Impact - The agreement includes deploying BIO-key's technologies in a major tourist city, addressing security and scalability needs for high-volume citizen and visitor services [3] - BIO-key's IAM and biometric solutions have already been operationalized in selected municipal environments, serving as reference architectures for further deployments [4] Group 3: Company Profiles - Visualforma is a well-established technology integrator in Portugal, recognized for its expertise in digital transformation and cybersecurity, with over 30 years of experience in the public sector [9] - BIO-key International specializes in biometric-centric IAM solutions, securing access for over 40 million users and offering various authentication methods, including phoneless and passwordless options [10]

Group 1 - BIO-key International, Inc. will participate in the DealFlow Discovery Conference on January 28th and 29th, 2025, at the Borgata hotel in Atlantic City, New Jersey, inviting institutional investors, family offices, and high-net-worth investors to attend at no cost [1] - CEO Mike DePasquale will present at the conference and will be available for one-on-one meetings throughout the event, with presentation details to be posted on DealFlow's website in January [2] - The DealFlow Discovery Conference, formerly known as The Microcap Conference, has expanded to include both publicly traded microcaps and qualified private companies across various high-growth sectors [4] Group 2 - The conference is organized by DealFlow Events and aims to bring together hundreds of companies, investors, and dealmakers for presentations, expert discussions, and networking opportunities, providing a platform for companies to showcase their value propositions [5] - Keynote presentations and panel discussions will feature renowned industry figures discussing business, investing, and trends in US equity markets, tailored to the public microcap and private market communities [6] Group 3 - BIO-key is a provider of biometric-centric, multi-factor identity and access management (IAM) software, securing access for over 40 million users, and offers various authentication options including phoneless, tokenless, and passwordless solutions [7]

Core Insights - BIO-key International, Inc. is participating in the 2025 Gartner Identity & Access Management Summit to showcase its innovative passwordless authentication solutions aimed at enhancing security and reducing user friction [1][2][3] Company Overview - BIO-key specializes in identity and access management (IAM) solutions that are phoneless, tokenless, and passwordless, securing access for over 40 million users [6] - The company emphasizes the importance of identity-bound biometrics and alternative multi-factor authentication (MFA) methods to address IAM challenges [2][8] Event Participation - At the Gartner IAM Summit, BIO-key will demonstrate its advanced authentication technologies and engage with IAM leaders across various sectors, including finance, healthcare, and government [4][5] - The event will also feature discussions on emerging trends in IAM, such as deepfake detection and machine IAM [5] Authentication Solutions - BIO-key's solutions focus on eliminating reliance on passwords and physical tokens, thereby reducing attack surfaces and enhancing user experience [8] - The company aims to modernize IAM by providing cost-effective solutions that lower operational overhead related to password management [8]

Core Insights - BIO-key International, Inc. has formed a strategic partnership with SAVIS Group to enhance its presence in Vietnam's digital transformation and cybersecurity market [1][2][4] - The collaboration aims to integrate BIO-key's advanced Identity and Access Management (IAM) and biometric authentication solutions with SAVIS Group's local expertise in digital trust and enterprise solutions [2][3] Company Overview - BIO-key is a leading provider of IAM and biometric authentication solutions, securing access for over 40 million users with its innovative technologies [5] - SAVIS Group is recognized as one of Vietnam's top information-technology enterprises, specializing in digital signing, identity verification, electronic authentication, and cybersecurity services [4] Partnership Details - The partnership will enable SAVIS Group to act as an authorized distributor of BIO-key's IAM portfolio, providing localized pre-sales, deployment, and technical support [3] - The collaboration is expected to empower organizations in Vietnam to enhance digital trust, secure critical infrastructure, and transition towards a passwordless future [4] Market Potential - Vietnam is identified as a promising market for digital transformation and cybersecurity innovation, making it an attractive opportunity for both companies [1][2]

Revenue Performance - For the three months ended September 30, 2025, total revenues decreased by 28% to $1,549,706 from $2,144,804 in the same period in 2024[110]. - For the nine months ended September 30, 2025, total revenues decreased by 11% to $4,853,772 from $5,467,293 in 2024[120]. - License revenue decreased by 36% to $917,951 from $1,441,011, attributed to the expansion of long-term customer license deployments in the previous year[112]. - License revenue decreased by 32% to $2,822,796, primarily due to the ramp-up of BIO-key EMEA selling only BIO-key products[122]. - Service revenues increased by 13% to $862,707, driven by a $117,000 or 17% increase in recurring maintenance and support revenue[121]. - Hardware sales decreased by 17% to $363,642 from $436,422, influenced by new customer deployments and inventory reservations[113]. - Hardware sales surged by 117% to $1,168,269, attributed to new customer purchases and sales of previously reserved inventory[123]. Expenses and Costs - Selling, general and administrative expenses decreased by 13% to $1,400,288 from $1,607,925, reflecting reductions in administration and professional services fees[115]. - Selling, general and administrative expenses decreased by 16% to $4,453,362, reflecting reductions in various administrative costs[125]. - Research, development, and engineering costs increased by 5% to $683,620 compared to $652,174 in the prior year, primarily due to professional services and personnel costs[116]. - Research, development, and engineering costs increased by 3% to $1,915,422, mainly due to higher professional services and personnel costs[126]. - Total cost of goods sold increased by 7% to $1,101,666, with hardware costs rising significantly due to increased sales[120][124]. Cash Flow and Financial Position - Net cash used in operations was $2,838,088, while net cash provided by financing activities was $4,456,013, including $3,813,057 from warrant exercises[129]. - As of September 30, 2025, total cash and cash equivalents were $2,039,853, a significant increase from $437,604 at December 31, 2024[139]. - The company requires approximately $830,000 per month to conduct operations and may need additional financing if revenue generation does not improve[140]. - The company is classified as a smaller reporting company and is not required to provide detailed market risk disclosures[142]. Strategic Initiatives - The company plans to expand its role in the IAM market and enhance its suite of authentication options to meet customer needs[100]. - The company aims to grow within government services and highly-regulated industries, anticipating increased demand for security solutions[101]. - The channel alliance program has grown to over 85 participants, contributing to incremental revenues[102]. - The company is actively pursuing strategic acquisitions in the IAM space to enhance its market presence and operational synergies[103]. Profitability - Gross profit margin slightly decreased to 77% from 78% year-over-year[109].

Financial Data and Key Metrics Changes - The company reported Q3 2025 revenue of approximately $1.55 million, consistent with the first two quarters of the year, but down roughly $600,000 compared to the previous year due to timing of larger customer orders [4][14] - Year-to-date revenue for 2025 was slightly under $5 million, reflecting a decrease largely attributed to quarter-to-quarter variability [4] - The net loss for Q3 2025 was $965,000 or $0.15 per share, compared to a net loss of $739,000 or $0.39 per share in Q3 2024 [16] Business Line Data and Key Metrics Changes - License fee revenue decreased to $918,000 in Q3 2025 from $1.4 million in Q3 2024, while service revenue increased slightly to $268,000 [14] - Hardware sales declined to approximately $364,000 in Q3 2025 from $436,000 in Q3 2024 due to timing of shipments [15] Market Data and Key Metrics Changes - The company experienced strong demand in the defense sector, with two of the top four largest global defense agencies using its technology [10] - The company is focusing on expanding its market reach in Europe, the Middle East, and Africa, particularly through channel sales efforts [7] Company Strategy and Development Direction - The company is advancing its channel sales efforts and has engaged an external marketing firm to enhance its marketing strategies and website content [7] - A significant update to the PortalGuard identity platform is expected to be released in late Q1 or early Q2 2026, which represents a major modernization of the platform [8] - The company is focusing on reducing its break-even levels and supporting positive cash flow and profitability [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects for the upcoming year, citing a strong pipeline of opportunities and the potential for significant contract renewals [12][39] - The company noted that the recent U.S. government shutdown did not impact its business operations [37] Other Important Information - The company raised approximately $3 million net of fees through a warrant exercise transaction, enhancing its cash liquidity [13] - Current assets as of September 30, 2025, were $3.7 million, including $2 million in cash, compared to $1.9 million in current assets at the end of 2024 [17] Q&A Session Summary Question: Was the Bank of Egypt win a recurring revenue deal? - Management confirmed it was an initial deployment with expectations for expanded deployment [19] Question: Are margins lower on the Bank of Egypt project due to partnership? - Management stated that gross margins on software remain above 90% [20] Question: What is the current ARR? - Management indicated that the ARR is growing and estimated to be in the $6 million-$7 million range [25] Question: What led to the decision to provide formal guidance? - Management cited confidence from a solid pipeline of opportunities and results from investments in the partner network [33] Question: Did the U.S. government shutdown impact business? - Management confirmed there was no impact from the shutdown [37] Question: Are there any major upcoming renewals in 2026? - Management indicated that there are several renewals and expansions on the horizon [40] Question: What is the status of the Channel Alliance program? - Management emphasized the focus on quality partnerships rather than quantity, with significant players in local markets [41][42]

Financial Data and Key Metrics Changes - The company reported Q3 2025 revenue of approximately $1.55 million, consistent with the first two quarters of the year, but down roughly $600,000 compared to the previous year due to timing of larger customer orders [4][14] - Year-to-date revenue for 2025 was slightly under $5 million, reflecting a decrease largely attributed to variability in order timing [4] - The net loss for Q3 2025 was $965,000 or $0.15 per share, compared to a net loss of $739,000 or $0.39 per share in Q3 2024 [16] Business Line Data and Key Metrics Changes - License fee revenue decreased to $918,000 in Q3 2025 from $1.4 million in Q3 2024, while service revenue increased slightly to $268,000 [14] - Hardware sales declined to approximately $364,000 in Q3 2025 from $436,000 in Q3 2024 due to timing of shipments [15] Market Data and Key Metrics Changes - The company experienced strong demand in the defense sector, with two of the largest global defense agencies using BIO-key technology [10] - The company is focusing on expanding its market reach in Europe, the Middle East, and Africa, particularly through channel sales efforts [7] Company Strategy and Development Direction - The company is advancing its channel sales efforts and has engaged an external marketing firm to enhance its marketing strategies and website content [7] - A significant update to the PortalGuard identity platform is expected to be released in late Q1 or early Q2 2026, which will modernize the platform and improve deployment capabilities [8] - The company is focusing on reducing operating expenses and achieving positive cash flow and profitability, having reduced operating expenses by over 10% in the first nine months of 2023 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects for the upcoming year, citing a strong pipeline of opportunities and the potential for significant contract renewals [12][39] - The company noted that the recent U.S. government shutdown did not impact its business operations [37] - Management highlighted the importance of biometrics in enhancing security and preventing fraud, positioning the company well in the current market [11] Other Important Information - The company raised approximately $3 million net of fees through a warrant exercise transaction, significantly improving its cash liquidity [13] - As of September 30, 2025, current assets totaled $3.7 million, including $2 million in cash, compared to $1.9 million in current assets at the end of 2024 [17] Q&A Session Summary Question: Was the National Bank of Egypt win a recurring revenue deal? - Management confirmed that it was an initial deployment with expectations for expanded deployment in the fourth quarter [19] Question: Are margins lower on the project with Raya? - Management stated that gross margins on software remain above 90% [20] Question: What is the current ARR? - Management indicated that the ARR is growing and estimated to be in the $6-$7 million range [26] Question: Will the longest U.S. government shutdown impact business? - Management confirmed that there was no impact from the government shutdown [37] Question: What led to the decision to provide formal guidance? - Management cited confidence from a solid pipeline of opportunities and results from investments in the partner network [34] Question: Are there any major upcoming renewals in 2026? - Management indicated that there are several renewals and expansions expected throughout the year [40]

Financial Data and Key Metrics Changes - The company reported Q3 2025 revenue of approximately $1.55 million, consistent with the first two quarters of the year, but down roughly $600,000 year-over-year due to timing of larger customer orders [4][15] - Year-to-date revenue for 2025 was slightly under $5 million, reflecting a decrease compared to the previous year [4] - The net loss for Q3 2025 was $965,000 or $0.15 per share, compared to a net loss of $739,000 or $0.39 per share in Q3 2024 [17] Business Line Data and Key Metrics Changes - License fee revenue decreased to $918,000 in Q3 2025 from $1.4 million in Q3 2024, while service revenue increased slightly to $268,000 [15] - Hardware sales declined to approximately $364,000 in Q3 2025 from $436,000 in Q3 2024 due to timing of shipments [16] Market Data and Key Metrics Changes - The company experienced strong demand in the defense sector, with two of the top four largest global defense agencies using its technology [11] - The company is focusing on expanding its market reach in Europe, the Middle East, and Africa, particularly through channel sales efforts [7] Company Strategy and Development Direction - The company is finalizing a major website overhaul and developing new marketing messaging to enhance its market presence [8] - A significant update to the PortalGuard identity platform is expected to be released in late Q1 or early Q2 2026, which will modernize the platform and improve deployment capabilities [9] - The company is expanding its partner network to enhance market penetration and drive growth [22][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects for 2026, citing a solid pipeline of opportunities and the potential for expanded deployments with existing customers [33][36] - The company is focused on reducing its break-even levels and achieving positive cash flow and profitability [13][44] Other Important Information - The company raised approximately $3 million net of fees through a warrant exercise transaction, significantly improving its cash liquidity [14] - Operating expenses decreased by over 10% through the first nine months of 2023, reflecting cost management efforts [13] Q&A Session Summary Question: Was the National Bank of Egypt deal a recurring revenue deal? - Yes, it was an initial deployment with expectations for expanded deployment in the future [20] Question: Are margins lower on the National Bank of Egypt project due to the partnership with Raya? - No, gross margins on software remain over 90% [21] Question: What is the current ARR? - The current ARR is estimated to be in the $6-$7 million range [26] Question: Will the company provide formal guidance for 2026? - The company is confident in its position and may provide guidance as it becomes more predictable [31][34] Question: Did the U.S. government shutdown impact the business? - No, there was no impact from the government shutdown [35] Question: What is the status of the Channel Alliance program? - The program is growing, focusing on quality partnerships that can deliver significant value [38][39]