BIO-key(US:BKYI)2022-03-29 17:13Financial Data and Key Metrics Changes - In 2021, the company achieved revenue growth of 80%, increasing from $2.8 million in 2020 to $5.1 million in 2021, while reducing net loss by approximately 50% [8][33] - Gross profit rose to $3.4 million in fiscal year 2021 from $2 million in fiscal year 2020, with a gross margin on license fee revenue of 93% in fiscal year 2021 [34] - Operating expenses increased to $8.4 million in FY 2021 from $7.2 million in FY 2020, reflecting higher investment in R&D and product introductions [35] Business Line Data and Key Metrics Changes - PortalGuard IDaaS revenue currently accounts for approximately 80% of total software and services revenue, with a significant increase in recurring software subscription revenue [10][15] - The company launched several new products, including MobilePOS Pro and EcoID II, enhancing its product offerings in the Identity and Access Management (IAM) space [10][11] Market Data and Key Metrics Changes - The company serves an installed base of over 500 IAM customers, with expectations that over 50% of revenues in 2022 will come from channel partners [15][16] - The company is targeting significant growth in the higher education, finance, and government sectors, with new customer acquisitions in these verticals [19][20] Company Strategy and Development Direction - The acquisition of Swivel Secure Europe for approximately $2.25 million is expected to enhance international operations and growth potential [12] - The company aims to focus on expanding its channel partner program and increasing recurring revenue streams through its IAM solutions [15][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's prospects, citing the increasing demand for biometric solutions and the importance of identity-bound biometrics in cybersecurity [14][15] - The company anticipates revenue guidance for 2022 in the range of $10 million to $13 million, representing a potential doubling of revenue compared to 2021 [16] Other Important Information - The company has been recognized as a Great Place to Work and received several industry awards for its technology and solutions [11] - The management highlighted the importance of cybersecurity in light of recent geopolitical events and the need for robust multi-factor authentication solutions [13][14] Q&A Session Summary Question: When will the 10-K be filed? - The company confirmed that the 10-K will be filed in the next day or so [39] Question: What suggests building momentum for the Africa contracts? - Management noted that financing for equipment deliveries in Africa is starting to process through banks, which is encouraging for future deployments [41] Question: Will the initial revenue from Africa contracts be hardware sales? - Management indicated that revenue will come from both hardware and recurring software, with a conservative approach taken for hardware guidance [43][44] Question: Why was Q4 license revenue down sequentially? - A large contract renewal off-cycle affected Q4 license revenue, but growth is expected in the upcoming quarters [46] Question: What is the expected growth for Swivel Secure's revenue in 2022? - Management expects all business, including Swivel Secure, to grow, particularly through cross-selling opportunities [49] Question: How will the acquisition of Swivel Secure impact operating expenses? - The acquisition is expected to be profitable and will not negatively impact operating expenses, with potential for upside [52] Question: Will revenue guidance be back-end loaded in 2022? - Management clarified that revenue is expected to be more even and predictable, not back-end weighted [62] Question: What barriers exist for competitors entering the market? - The company highlighted its unique biometric technology and integrated solutions as significant barriers to entry for competitors [68] Question: Is the company positioned well regarding the 2021 security executive order? - Management affirmed that the company is well-positioned to meet the requirements of the executive order, particularly in enhancing cybersecurity for government clients [70]