BIO-key(US:BKYI)2021-03-25 18:44Financial Data and Key Metrics Changes - Q4 2020 revenues doubled to $1.1 million from $535,000 in Q4 2019, primarily due to PortalGuard's contribution [27][38] - Full year 2020 revenues increased 25% to $2.8 million from $2.3 million in 2019, largely driven by the PortalGuard acquisition [27][38] - Gross margin improved to 71% in Q4 and 72% for the full year, compared to negative levels in prior years [38] - Q4 operating loss improved 34% to $1.4 million from a loss of $2.2 million in Q4 2019 [39] - Net loss to stockholders was $1.4 million or $0.18 per share in Q4 2020, compared to a net loss of $9.5 million or $5.29 per share in Q4 2019 [40] Business Line Data and Key Metrics Changes - The acquisition of PortalGuard significantly enhanced the company's security, ID, and authentication solutions, contributing to second-half performance [9][10] - The company launched PortalGuard IDaaS in Q4 2020, which has been well received in the market [14] - The company is focusing on expanding its sales and marketing initiatives for its biometric and identity management solutions [12][30] Market Data and Key Metrics Changes - The company anticipates revenues of $8 million to $12 million for 2021, representing over 250% growth compared to fiscal 2020 [28] - The company sees significant upside potential from its African business, particularly in Nigeria [45][88] - The company is developing interest in its solutions across North America, Africa, and Asia [27] Company Strategy and Development Direction - The company is ramping up its sales and marketing initiatives to engage with a growing list of customer prospects [12] - The focus is on a software-as-a-service model for PortalGuard to align with the trend towards cloud-based IT infrastructure [30] - The company is expanding its Channel Alliance Partner Program to enhance market reach and support [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a strong financial position and a growing pipeline of opportunities [25][27] - The company believes that hybrid work models are here to stay, creating significant IT security challenges that it is well-positioned to address [15][36] - Management noted that the pandemic has accelerated the demand for identity and access management solutions [10][16] Other Important Information - The company has established a presence in large projects in Africa and is pursuing additional opportunities [21] - The company has a strong balance sheet with over $19 million in current assets, including approximately $17 million in cash [42] Q&A Session Summary Question: Can you provide more color on the revenue guidance for 2021? - Management indicated that the guidance of $8 million to $12 million is conservative, with significant upside potential from the African business [44][46] Question: What are the expected growth rates for the core BIO-key business versus PortalGuard? - Management expects both businesses to grow together, with significant growth anticipated in the PortalGuard platform [48][49] Question: What is the confidence level for recognizing the $500,000 revenue from Africa contracts in Q1? - Management expressed high confidence in recognizing the revenue [54] Question: Can you quantify the backlog or pipeline? - Management stated that the backlog is growing, with significant opportunities in both Africa and the core business [60][61] Question: What is the status of the telecom deal in Africa? - Management confirmed that both contracts are moving forward [70] Question: What is the expected breakeven revenue number going forward? - Management indicated that the breakeven number is now estimated to be around $2 million to $2.2 million [75] Question: What is the expected revenue from the African contracts over the next two years? - Management confirmed the expectation of $75 million over the two-year period, with a gradual ramp-up [88]