BIO-key(BKYI)2024-11-15 21:10Financial Data and Key Metrics Changes - BIO-key reported a revenue increase of 18% year-over-year to 1.8 million in Q3 2023 and 1.4 million in Q3 2024, indicating significant improvement [6] - The net loss improved to 0.39 per share in Q3 2024, compared to a loss of 3.22 per share in Q3 2023 [29] Business Line Data and Key Metrics Changes - The increase in revenue was driven by higher software license fees and hardware revenue as several long-term customers expanded their BIO-key deployments [24] - The company exited its Swivel Secure services agreement in Europe, which was a low-margin business, expected to benefit gross margins moving forward [26][49] Market Data and Key Metrics Changes - The province of British Columbia is adding 10,000 users to their existing deployment of BIO-key's WEB-key software, enhancing secure biometric access [12] - The defense ministry has expanded its deployment to over 33,000 users, indicating a growing market presence [11] Company Strategy and Development Direction - BIO-key is focused on driving revenue growth and progressing towards profitability and positive cash flow [20] - The company plans to leverage its core expertise and products to create shareholder value, with a growing base of high-margin annual recurring revenues [17][18] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the adoption and expansion of their solutions among larger customer accounts, indicating a positive trend [33] - The company expects Q4 revenue to meet or exceed Q3 levels, primarily driven by license revenue [37][38] Other Important Information - The cash position improved with approximately 4.6 million, including 1.8 million in cash and cash equivalents [30] Q&A Session Summary Question: What contributed to the revenue increase in Q3? - Management noted that Q3 is typically a softer quarter, but strong business from existing customers contributed to the positive results [33] Question: Did the 500,000 order from the defense ministry get recognized in Q3? - Yes, the entire order was recognized in Q3 [34] Question: What is the expected revenue from the large financial services customer? - A portion of the 2.3 million are considered a good baseline moving forward [39][40] Question: When can formal guidance be expected? - Management indicated that formal guidance may be introduced in 2025 as visibility into subscription revenue increases [42] Question: What is the recurring revenue from the defense ministry? - The defense ministry is not a subscription customer, but they typically spend between 1.5 million annually [45] Question: What is the status of accounts receivable? - The majority of accounts receivable has been collected, with most expected to be collected in Q4 [63]