BIO-key(US:BKYI)2022-05-16 19:43Financial Data and Key Metrics Changes - BIO-key's license revenue increased by 205% compared to Q1 2021 and by 267% from Q4 2021, reflecting growth in the customer base and contributions from the acquisition of Swivel Secure [7] - Gross profit margin rose to 82.6% in Q1 2022, up from 59.4% in Q1 2021, driven by an increase in annual recurring revenue from software licenses [7] - Q1 2022 revenue was $1.94 million, up from $1.89 million in Q1 2021, with a reported net loss of $1 million or $0.12 per share compared to a net loss of $900,000 or $0.11 per share in Q1 2021 [36][38] Business Line Data and Key Metrics Changes - Software license fees saw a 205% increase, while services revenue also rose, offsetting a decline in hardware revenue [36] - The PortalGuard solution gained traction in various sectors, including government and higher education, with significant customer wins [10][12] Market Data and Key Metrics Changes - The company is expanding its presence in the Nigerian market, with expectations of increased shipments of hardware and software in the coming months [44] - The Channel Alliance Program now accounts for approximately 50% of new sales, indicating strong market engagement [10][45] Company Strategy and Development Direction - BIO-key aims to enhance its software license revenue base through its PortalGuard IAM platform and is actively seeking value-enhancing M&A opportunities [22][23] - The company is focused on integrating Swivel Secure to expand its international operations and customer base [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaching breakeven profitability and free cash flow at the lower end of the revenue guidance range of $10 million to $13 million for 2022 [24][25] - The company reiterated its growth outlook, expecting approximately 100% growth over 2021, primarily driven by software licenses [25] Other Important Information - BIO-key's recent enhancements to its MobileAuth solution integrate identity-bound biometrics with other authentication methods, improving security and ease of use [18][20] - The company has received several industry awards, enhancing its reputation and visibility in the market [21] Q&A Session Summary Question: What was the organic growth of licensing revenue versus Swivel Secure's contribution? - Management indicated that approximately $360,000 of licensing revenue in Q1 2022 came from Swivel Secure, with strong organic growth otherwise [42] Question: What are the expectations for shipments in Nigeria? - Management noted that there was a small contribution from hardware sales in Q1, with expectations for revenue to ramp up significantly in the second half of 2022 [44] Question: How many channel alliance partners does the company currently have? - Management stated that they have connected with approximately 200 to 400 partners, with potential growth to 5,000 to 10,000 partners through Intelisys [47]