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VANCOUVER, British Columbia - BIO-key International, Inc. (NASDAQ:BKYI), a provider of identity and access management (IAM) solutions, has announced an expansion of its biometric services with the government of British Columbia. The province has placed orders to add 10,000 users to their existing deployment of BIO-key's WEB-key software, which is integrated with Broadcom (NASDAQ:AVGO)'s SiteMinder infrastructure.
The integration is designed to streamline and secure access to new applications using SAML 2.0 federation standards. This move enhances the province's cybersecurity measures by incorporating BIO-key’s cloud-enabled biometric authentication platform into its existing authentication infrastructure.
Since 2012, the British Columbia government has utilized BIO-key's platform to offer secure biometric authentication across its systems, applications, and facilities. The platform was extended in 2017 to include physical access control using fingerprint biometrics for door access. This approach allows for secure sign-in and access without the additional costs and risks associated with token and card solutions.
Jim Sullivan, BIO-key’s SVP Strategy and Chief Legal Officer, stated, "The British Columbia government has been a leader in providing secure biometric authentication with BIO-key solutions for more than a decade." He highlighted the province's recognition of the need for security in 'roving user' scenarios and the importance of ensuring that only the right user accesses sensitive information.
BIO-key is known for its IAM software that secures access for over forty million users worldwide. The company offers a variety of authentication factors for different use cases, including biometric options that eliminate the need for phones, tokens, or passwords.
The expansion with the British Columbia government reflects BIO-key's commitment to providing secure and user-friendly solutions tailored to enterprise use cases, especially for workforces that require mobility.
The information in this article is based on a press release statement from BIO-key International, Inc.
In other recent news, BIO-key International has secured approximately $1.9 million through an agreement with an institutional investor for the exercise of warrants. This transaction involves the purchase of around 1.03 million shares of BIO-key common stock at a revised price of $1.85 per share. Maxim Group LLC is serving as the exclusive placement agent for this transaction.
Additionally, BIO-key has received an order exceeding $500,000 from a government defense ministry, expanding its biometric user authentication solution to support over 33,000 users. This is part of a three-year purchasing agreement and the company is anticipating additional awards as it extends the use of its solution.
However, BIO-key reported a decrease in Q2 2024 revenues to $1.1 million, a decline from the previous year's $1.9 million. This was attributed to delays in software license contracts and the non-renewal of a significant maintenance contract. Despite this, the company's net loss improved to $1.7 million from $2.6 million.
In other developments, BIO-key's shareholders approved the board members and auditor at the Annual Meeting. The elected board members include Michael W. DePasquale, Wong Kwok Fong (Kelvin), Robert J. Michel, Emmanuel Alia, and Cameron E. Williams. Furthermore, Bush & Associates CPA LLC was ratified as BIO-key's independent registered public accounting firm for the upcoming fiscal year.
These are recent developments that demonstrate the company's resilience and potential for future growth.
InvestingPro Insights
As BIO-key International, Inc. (NASDAQ:BKYI) continues to expand its biometric services with the government of British Columbia, it's important for investors to consider the company's financial health and market performance. According to InvestingPro data, BIO-key's market capitalization stands at a modest $2.1 million USD, reflecting the scale of the company within the broader tech industry. The company's revenue for the last twelve months as of Q2 2024 is reported at $6.96 million USD, with a notable gross profit margin of 43.15%. However, it's evident that the company is facing challenges, with an operating income margin of -98.39% indicating significant expenses relative to income.
Investors should note that BIO-key is currently trading near its 52-week low, with a price of $1.06 USD at the previous close. This level represents just 10.28% of the stock's 52-week high, which may signal a potential opportunity for investors looking for entry points in undervalued stocks. Nonetheless, caution is warranted as the stock has experienced a substantial 1-year price total return of -88.68%, highlighting the volatility and risks associated with this investment.
Among the notable InvestingPro Tips, BIO-key is quickly burning through cash and analysts anticipate a sales decline in the current year, which could impact the company's ability to sustain operations and growth. Additionally, the stock has fared poorly over the last month and is characterized by high price volatility, suggesting that investors should be prepared for potential short-term fluctuations in the stock's price.
For those interested in a deeper analysis, there are 16 additional InvestingPro Tips available on the InvestingPro platform, offering comprehensive insights into BIO-key's financials, market performance, and future outlook. These tips can be accessed at https://www.investing.com/pro/BKYI, providing valuable information for investors considering this stock.
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