BIO-key(US:BKYI) Globenewswire·2025-03-27 11:58Core Insights - BIO-key International, Inc. reported a strategic transition in 2024, focusing on high-margin software license fee revenue, which increased by 20%, while overall revenue decreased by 11% due to exiting low-margin services [2][12][16] - The company is optimistic about future growth, driven by increasing demand for its passwordless, phoneless, and tokenless biometric solutions across various sectors, including national defense, financial services, and education [4][11] Financial Performance - Total revenues for 2024 decreased to $6.9 million from $7.8 million in 2023, with license fee revenue rising to $5.2 million, a 20% increase from $4.3 million in 2023 [12][16] - Operating expenses were reduced by 6% to $9.7 million in 2024, contributing to an improved net loss of $4.3 million, compared to a net loss of $8.7 million in 2023 [15][16] - Gross profit increased significantly to $5.6 million in 2024 from $1.4 million in 2023, reflecting the shift to higher-margin products [14][16] Strategic Developments - BIO-key secured a $910,000 contract with a financial services client to implement biometric identification technology, enhancing customer interaction efficiency [5] - The company expanded its partnership with the National Bank of Egypt to integrate its PortalGuard IAM platform, securing digital identities for 30,000 employees [7] - A strategic collaboration with Fiber Food Systems was announced to explore IAM use cases in the food industry, indicating diversification into new markets [10] Market Positioning - BIO-key has established a growing presence in the education sector, serving over 4 million end users across more than 100 institutions [9] - The company is experiencing strong order demand in EMEA countries, indicating a robust international market presence [4] - The transition to focus on proprietary solutions is expected to enhance profitability and market competitiveness [2][11]