Seguridad Mania.com - España y América Latina

WALL, NJ -- (Marketwired) -- 03/31/14 -- BIO-key International, Inc. (OTCBB: BKYI), a leader in fingerprint biometric identification technologies, cloud-based mobile credentialing and identity verification solutions, today reported financial results for the Fourth Quarter and Fiscal Year, ended December 31, 2013 and provided a strong outlook for the first Quarter of Fiscal 2014.

Three Month Comparisons

Total revenue for the three months ended December 31, 2013 was $327,500, compared to Q4'12 revenue of $1.48 million, a decrease of approximately 78%. Sales fell, year over year, primarily from lower license revenue. Michael DePasquale, BIO-key Chairman and CEO, commented, "Despite disappointing financial performance, 2013 was a pivotal year for BIO-key. We met virtually all of our initiatives to prepare for what we believe is the beginning of a hyper-growth phase of development for us. With Apple, Samsung and other providers deploying fingerprint enabled smartphones, there is no doubt our market is here. Our marquee partnerships with InterDigital, IBM, CA and others drive our cloud-based strategy. Our recent partnership with IDEX promises to put BIO-key technologies on mobile phones in the United States and abroad. We believe we are one of the only core fingerprint technology developers that can perform both cloud and on-device authentication and we may be the only biometric vendor that currently integrates to most of the popular security infrastructure solutions used by enterprises and governments worldwide."

Q4'13 gross margin remained stable, sequentially, at 78%, but fell from 90% in Q4'12 as a result of lower license sales as a percentage of total sales. Operating expenses for Q4'13 increased 38%, year over year, to $1,163,961 from roughly $842,000 in Q4'12. Net loss for Q4'13 was ($1,039,595), as compared to net income of $486,000 in Q4'12. Mr. DePasquale continued, "2013 was about important corporate development, strategic hires, strategic partnerships, new operating processes and strategic planning. With a refreshed and very experienced Board, we are ready for 2014 which we see as our break-out year."

Fiscal Year Comparison

Total revenue for the year ended December 31, 2013 was $1.99 million, as compared to $3.84 million for the year ended December 31, 2012, a decrease of 48%. 2013 license and hardware revenue totaled approximately $1.0 million and fell roughly 64% year over year, while 2013 service revenue of $988,002 fell 10% from $1.1 million in 2012.

FY'13 gross margin of 81%, fell slightly from 85% in 2012, primarily as a result of lower license revenue as percentage of total revenue. FY'13 operating expense increased to $4.1 million, from $3.2 million. S,G&A expense increased to $2.8 million in 2013, from $2.3 million in 2012, largely as a result of a one-time reversal of reserves for doubtful accounts in Q3'12 in the amount of $300,000, and non-recurring legal expense in Q1'13 of $130,000 related to the InterDigital transaction. FY'13 R&D expense increased 42%, to $1.34 million from $947,000 in 2012 as new customer integrations and project development requirements increased. Net loss for 2013 was $2.6 million, or ($0.03) per diluted share, as compared to break-even in 2012.

Liquidity and Capital Resources

The Company reported cash and cash equivalents of $2.02 million as of December 31, 2013, as compared to $83,989 at December 31, 2012. BIO-key has no long-term debt. Mr. DePasquale concluded, "Not only is BIO-key in its strongest financial position in years, but we are operationally prepared to capitalize on increased market demand and substantially grow our business. Our pipeline is expanding and we are executing well on our strategic plan. We believe our sales visibility and prospects for both growth and more consistent revenue performance are improving, such that we can provide some guidance for our shareholders. We've got more work to do, but I've never been more excited about our prospects for Q1 and beyond."

2014 First Quarter Outlook
For the First Quarter of 2014, the Company expects revenue between $1.2 million and $1.4 million. Gross margin is expected to exceed 85%. The Company expects to generate operating income and net profit for the quarter. Further, the Company expects to exit the first quarter with a modest sales backlog. The pipeline value was approximately $12 million at the beginning of the quarter and approximately $15 million at quarter-end.

Conference Call and Webcast

In conjunction with this release, BIO-key has scheduled a conference call, which will be broadcast live over the Internet on Tuesday, April 1, 2014 at 10:00 a.m. Eastern Daylight Time. Participate live via phone by dialing 1-877-317-6789 (U.S.) 1-412-317-6789 (International) and asking for the BIO-key Call at least 10 minutes prior to the start time. Or join the call live over the Internet by logging on to the web address http://www.bio-key.com. A streaming audio replay of the webcast will be available shortly after the call on www.bio-key.com for a period of thirty days. You can also access the recorded call by dialing 1-877-344-7529 and using access code 10043330. International callers should dial 1-412-317-0088 and use the same access code.

                 BIO-key International, Inc. and Subsidiary
                         CONSOLIDATED BALANCE SHEETS
                                                        December 31,
                                                 --------------------------
                                                     2013          2012
                                                 ------------  ------------
                     ASSETS
Cash and cash equivalents                        $  2,023,349  $     83,989
Accounts receivable, net of allowance for
 doubtful accounts of $20,526 at December 31,
 2013 and December 31, 2012                           284,025       604,784
Due from factor                                         2,449       189,904
Inventory                                               9,376         4,186
Prepaid expenses and other                             73,482        25,088
                                                 ------------  ------------
Total current assets                                2,392,681       907,951
                                                 ------------  ------------
Equipment and leasehold improvements, net             125,062        24,267
Deposits and other assets                               8,712         8,712
Intangible assets--less accumulated amortization      174,950       195,911
                                                 ------------  ------------
Total non-current assets                              308,724       228,890
                                                 ------------  ------------
TOTAL ASSETS                                     $  2,701,405  $  1,136,841
                                                 ============  ============

                   LIABILITIES
Accounts payable                                 $    540,912  $    931,276
Accrued liabilities                                   338,321       593,599
Deferred revenue                                      528,160       508,520
Note payable - related party                                -       321,428
                                                 ------------  ------------
Total current liabilities                           1,407,393     2,354,823
                                                 ------------  ------------
Warrant liabilities                                   243,077             -
                                                 ------------  ------------
TOTAL LIABILITIES                                   1,650,470     2,354,823
                                                 ------------  ------------

Commitments

          STOCKHOLDERS' EQUIY (DEFICIT)
Common stock -- authorized, 170,000,000 shares;
 issued and outstanding; 115,842,315 and
 78,155,413 of $.0001 par value at December 31,
 2013 and December 31, 2012, respectively              11,584         7,815
Additional paid-in capital                         55,909,923    51,062,624
Accumulated deficit                               (54,870,572)  (52,288,421)
                                                 ------------  ------------
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)                1,050,935    (1,217,982)
                                                 ------------  ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 (DEFICIT)                                       $  2,701,405  $  1,136,841
                                                 ============  ============



                 BIO-key International, Inc. and Subsidiary
                    CONSOLDIATED STATEMENTS OF OPERATIONS

                                                  Years ended December 31,
                                                 --------------------------
                                                     2013          2012
                                                 ------------  ------------

Revenues
Services                                         $    988,003  $  1,094,731
License fees and other                                997,973     2,741,162
                                                 ------------  ------------
                                                    1,985,976     3,835,893
Costs and other expenses
Cost of services                                      145,702       221,027
Cost of license fees and other                        241,326       350,706
                                                 ------------  ------------
                                                      387,028       571,733
                                                 ------------  ------------
Gross Profit                                        1,598,948     3,264,160
                                                 ------------  ------------

Operating expenses
Selling, general and administrative                 2,776,559     2,288,903
Research, development and engineering               1,344,070       947,371
                                                 ------------  ------------
                                                    4,120,629     3,236,274
                                                 ------------  ------------
Operating (loss) income                            (2,521,681)       27,886
                                                 ------------  ------------

Other income (deductions)
Interest income                                             7             7
Interest expense                                      (29,281)      (24,626)
Gain on derivative liabilities                         78,812             -
Income taxes                                           (2,805)            -
Amortization of deferred costs                       (107,203)            -
                                                 ------------  ------------
                                                      (60,470)      (24,619)
                                                 ------------  ------------
Net income (loss)                                $ (2,582,151) $      3,267
                                                 ============  ============

  Basic and Diluted (Loss) Income per Common
   Share:                                        $      (0.03) $       0.00
                                                 ============  ============

Weighted Average Shares Outstanding:
Basic and Diluted                                  91,791,690    78,155,413



                 BIO-key International, Inc. and Subsidiary
                    CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                  Years ended December 31,
                                                 --------------------------
                                                     2013          2012
                                                 ------------  ------------

CASH FLOW FROM OPERATING ACTIVITIES:
Net (loss) income                                $ (2,582,151) $      3,267
Adjustments to reconcile net (loss) income to
 cash (used for) provided by operating
 activities:
Allowance for doubtful accounts                             -      (377,000)
Depreciation                                           28,618        28,603
Amortization
Intangible assets                                      20,961        11,269
Deferred costs                                        107,203             -

Share-based compensation                               81,642        49,842
  Derivative                                          (78,812)            -
Change in assets and liabilities:
Accounts receivable trade                             320,759       359,562
Due from factor                                       187,455      (189,904)
Inventory                                              (5,190)        4,051
Prepaid expenses and other                            (48,394)       33,833
Accounts payable                                     (480,364)      243,835
Accrued liabilities                                  (255,278)      (82,234)
Deferred revenue                                       19,640       (19,572)
                                                 ------------  ------------
Net cash (used for) provided by operating
 activities                                        (2,683,911)       65,552
                                                 ------------  ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures                                 (129,413)            -
                                                 ------------  ------------
Net cash used for investing activities               (129,413)            -
                                                 ------------  ------------
CASH FLOW FROM FINANCING ACTIVITIES:
Issuances of common stock                           5,649,793             -
Repayment of notes payable - related party           (321,428)      (25,000)
Proceeds from issuance of Note Payable                497,307             -
Repayment of Note Payable                            (497,307)            -
Costs to issue common stock and Note Payable         (575,681)            -
                                                 ------------  ------------
Net cash provided by (used for) financing
 activities                                         4,752,684       (25,000)
                                                 ------------  ------------
NET INCREASE IN CASH AND CASH EQUIVALENTS           1,939,360        40,552
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR           83,989        43,437
                                                 ------------  ------------
CASH AND CASH EQUIVALENTS, END OF YEAR           $  2,023,349  $     83,989
                                                 ============  ============

About BIO-key
BIO-key International, Inc., headquartered in Wall, New Jersey, develops and delivers advanced identification solutions to commercial and government enterprises, integrators, and custom application developers. BIO-key's award winning, high performance, scalable, cost-effective and easy-to-deploy biometric finger identification technology accurately identifies and authenticates users of wireless and enterprise applications. Our solutions are used in local embedded OEM products as well as some of the world's largest identification deployments to improve security, guarantee identity, and help reduce identity theft. BIO-key's technology is offered directly or by market leading partners around the world. (http://www.bio-key.com)

BIO-key Safe Harbor Statement
Certain statements contained in this press release are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the "Act"). The words "estimate," "project," "intends," "expects," "anticipates," "believes" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Act. These statements are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of these statements. These risks and uncertainties include, without limitation, our history of losses and limited revenue, our ability to develop new products and evolve existing ones, wider market acceptance of biometric technologies, our ability to raise additional financing, and our ability to attract and retain key personnel. For a more complete description of these and other risk factors that may affect the future performance of BIO-key International, Inc., see "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2013 and its other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to disclose any revision to these forward-looking statements whether to reflect events or circumstances after the date hereof or otherwise.