BIO-key International, Inc. (NASDAQ: BKYI) reported an earnings per share (EPS) of -$0.53, missing the estimated EPS of -$0.35.
The company’s revenue was approximately $1.46 million, below the estimated $2.5 million.
Despite a revenue decline, BKYI managed to reduce its net loss by 49% to $4.3 million in 2024.
BIO-key International, Inc. (NASDAQ: BKYI) is a prominent player in the Identity and Access Management (IAM) solutions sector. The company focuses on providing high-margin software solutions, such as PortalGuard IAM and Identity-Bound Biometrics. Despite its strategic focus, BKYI faces competition from other IAM providers, which impacts its financial performance.
On March 27, 2025, BKYI reported an earnings per share (EPS) of -$0.53, which was below the estimated EPS of -$0.35. The company’s actual revenue was approximately $1.46 million, falling short of the estimated $2.5 million. This shortfall is partly due to a strategic shift that involved exiting a low-margin services relationship with Swivel Secure.
Despite the revenue decline, BKYI managed to reduce its net loss by 49% to $4.3 million in 2024. This improvement is attributed to a higher gross margin and reduced operating costs. The company achieved a 20% growth in high-margin software license fee revenue, which helped offset the 11% decrease in overall revenue.
BKYI’s financial ratios highlight some challenges. The negative price-to-earnings (P/E) ratio of -0.18 indicates a lack of profitability. The price-to-sales ratio of 0.42 suggests that the stock is valued at 42 cents for every dollar of sales. Additionally, the enterprise value to sales ratio is 0.52, implying that the company’s total valuation is slightly more than half of its sales.
The company’s financial health is further strained by a high debt-to-equity ratio of 18.52, indicating significant reliance on debt financing. The current ratio of 0.78 suggests potential liquidity issues, as BKYI may struggle to cover its short-term liabilities with its short-term assets. Despite these challenges, the company remains focused on strengthening its core solutions and improving its financial performance.
