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BIO-key acquires Boumarang shares in strategic deal

Published 12/02/2024, 08:44 AM
BKYI
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The transaction reportedly strengthens BIO-key's balance sheet with an additional $5 million in net assets. The press release emphasizes the potential for streamlined operations, scalable solutions, and a commitment to innovation as key benefits of this collaboration. For a comprehensive analysis of BIO-key's financial position and growth prospects, investors can access the detailed Pro Research Report available exclusively on InvestingPro, which covers over 1,400 US stocks with expert insights and actionable intelligence. For a comprehensive analysis of BIO-key's financial position and growth prospects, investors can access the detailed Pro Research Report available exclusively on InvestingPro, which covers over 1,400 US stocks with expert insights and actionable intelligence.

The collaboration aims to leverage BIO-key's IAM expertise alongside Fiber's food technology and distribution network, particularly across high-traffic food service locations such as schools and universities. The integration of BIO-key's PortalGuard IAM platform, which offers phoneless, tokenless, and passwordless authentication, is expected to enhance security and operational efficiency in these environments.

BIO-key's PortalGuard has been recognized for its multi-factor authentication capabilities, supporting over 35 million users globally. This partnership is set to address the growing concerns around secure access and data protection in the food tech sector, which handles sensitive personal and payment data.

Michael W. DePasquale, Chairman & CEO of BIO-key, expressed enthusiasm about the partnership, stating that it marks an important milestone in the company's mission to deliver secure IAM solutions to industries where secure and seamless access is crucial. Candice Beaumont, Executive Chairperson of Fiber Food Systems, also acknowledged the strategic alignment of the partnership with their mission to innovate in the food tech industry.

The transaction reportedly strengthens BIO-key's balance sheet with an additional $5 million in net assets. The press release emphasizes the potential for streamlined operations, scalable solutions, and a commitment to innovation as key benefits of this collaboration.

The information provided in this article is based on a press release statement from BIO-key International (NASDAQ:BKYI), Inc.

In other recent news, BIO-key International has reported a growth in revenue and a significant reduction in net loss for the third quarter of 2024. The company's revenue rose by 18% to $2.1 million compared to the same quarter in the previous year, with high-margin license revenue jumping 52% to $1.4 million. Despite a decrease in total revenues for the first nine months of 2024, BIO-key improved its net loss to $0.7 million, down from $1.8 million in Q3 2023, and reported a net income of $2.9 million, or $1.69 per share.

The company also secured significant orders from a foreign defense ministry and a major financial services customer, which are expected to impact future results positively. BIO-key anticipates 2024 annual revenues to meet or exceed the previous year's $7.75 million, with a continued focus on increasing high-margin license revenue. The company aims to enhance revenue and achieve profitability by focusing on subscription revenue and expanding its presence on the AWS Marketplace.

Gross margins improved and are expected to remain around 70%, contributing to a quicker path to profitability. BIO-key exited a low-margin civil agreement in Europe, which contributed to the revenue decrease over the nine months of 2024. However, a large international project is expected to generate at least $2.4 million in Q4 2024, indicating a positive outlook for the company's future.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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