Defense ministry awards BIO-key $600K for biometric authentication

Published 17/06/2025, 13:02
Defense ministry awards BIO-key $600K for biometric authentication

HOLMDEL, N.J. - BIO-key International, Inc. (NASDAQ:BKYI), a biometric solutions provider with an impressive 80% gross profit margin according to InvestingPro data, has received over $600,000 in new orders from a defense ministry’s cyber-defense unit for its biometric authentication solution, according to a company press release issued Tuesday.

The orders include biometric hardware and authentication software scheduled for delivery in the current quarter. The unnamed defense ministry has implemented BIO-key’s solution across programs serving over 47,000 users with more than 40,000 BIO-key fingerprint scanners. For investors tracking growth potential, InvestingPro analysis indicates the stock is currently trading below its Fair Value, with the company generating annual revenue of $6.36 million.

The ministry integrated BIO-key’s biometric authentication with its authentication federation platform to provide secure access to systems and applications across organizational boundaries. The company stated that its technology allows for quick addition of new users without requiring token or phone provisioning steps.

Jim Sullivan, BIO-key’s SVP Strategy and Chief Legal Officer, called the organization "one of the most sophisticated consumer and developer of cybersecurity technologies in the world," noting that the deployment demonstrates BIO-key’s innovation capabilities.

BIO-key, which provides identity and access management solutions featuring what it calls Identity-Bound Biometrics, indicated it expects additional awards in future periods as the ministry expands use of its solution.

The company claims its biometric authentication platform has proven more reliable, less costly and more secure than hardware security keys, with credentials that cannot be shared, delegated, phished or forgotten since they are inherent to the individual. While the company maintains strong gross margins, InvestingPro data reveals additional insights about the company’s financial health and growth prospects, with over 30 key metrics and analysis available to subscribers.

In other recent news, BIO-key International reported its Q1 2025 earnings, revealing a revenue of $1.6 million, which signifies a 10% increase from the previous quarter but a decline from $2.2 million in Q1 2024. The company experienced a net loss of $737,000, or $0.16 per share, though it improved its cash position significantly to over $3 million. BIO-key has entered a strategic partnership with Runlevel to expand its cybersecurity solutions into Portuguese-speaking African countries and Timor-Leste, with a notable deployment at a National Bank in Mozambique. The collaboration aims to enhance cybersecurity measures, particularly in financial institutions and government sectors. Additionally, BIO-key’s focus on biometric solutions and government contracts is expected to drive future growth, with potential renewals from its largest customer anticipated to reach $3 million in Q1 2026. The company has also reduced its operating expenses by 18% and SG&A expenses by 23%, contributing to its strategic shift towards high-margin BIO-key branded products in the EMEA region. Analysts from Maxim Group have noted that BIO-key’s efforts to control expenses and focus on expanding its biometric technology could position the company for improved financial performance.

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