BKYI - Earnings call transcript Q3 2017 | BIO-key International, Inc.

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Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the BIO-key International’s Third Quarter 2017 Conference Call.

During the presentation, all participants will be in listen-only mode. After the speakers' remarks, you will be invited to participate in a question-and-answer session.

and conference ladies today, being reminder, XXXX. NovemberXX, a gentlemen, is this recorded As like the Marketing. to today's now would I turn Mahnken, Vice host, conference BIO-key's President of Scott to over

You sir. may begin,

Scott Mahnken

statements that you for results morning call remind Rivera, from subject projects, everyone like that made this beliefs management's well the DePasquale, intends, Safe are basis COO are management, Good morning based on as Ceci those Mike and forward-looking webcast as by of and and the Reform joining to assumptions believes, on may BIO-key's With to cause are CEO; these today's Harbor and may forward-looking Act Chairman risks similar conference Private to available to expressions Welch, certain projected that and provisions forward-looking and statements. information materially the us are contain BIO-key's estimate, and differ today's of expects, me call. Litigation Barbara XXXX. statements to pursuant I'd identify currently thank intended on CFO. The uncertainties actual words to made of Such Securities statements.

to over this The any DePasquale. after the of circumstances to cautioned like BIO-key made. complete revision to made. in events statements as Form company forward-looking the to other may and For future date undertakes its these not reflect reliance only speak the of other Risk and these I'd date turn the which XX-K SEC. see risk that to statements, At to are performance no place the factors description also a company's call Listeners these Annual forward-looking obligation Mike on disclose of International, Factors affect the Report time, with on filings undue or

Mike DePasquale

thank and our our few an for for with updated growth Thank strategies full third fiscal-year you and us on I'll begin and remarks XXXX then comments long-term provide update everyone, you joining on a my performance. today. all our good morning Scott, quarter, outlook

of product our performance reflection as XXX% core focus third year the timing. Our BIO-key’s results be driven of This reflect the of can quarter array a size XX. to and plug are nature over growing growing from the which our expand in decision play beyond our our readers far hardware sales the demand grew by offerings software compatible products. solid ago compact Windows sales contribution that Hardware variable and with quarter, is functionality of fingerprint as for

customers sign crease users. of of spectrum Our Demand as local to readers also applications from coming and was well as providing customers with enterprise hosted into readers the the web security from broad allowing of touch a convenience providing finger. is our consumer a

CES a billion a readers our their sign-in advanced existing US provide ago Recognizing of commercial nearly employees. added the line insurance seeing Microsoft we and alternatives, lead fingerprint growing security contractor number for layer and Windows those choose ease over initial biometric its provider second by were at The and production online order factor which deployment, and to of applications, expect debuting by Since and to the thousands deploy XXXX chosen requirements with enabled government their the a for of based of comply this to layer infrastructure. Similarly hardware of signing that our has secure Sideswipe it's network authentication. total total example, an the tested cost to readers and ECO-ID use into and provider a password-based regulatory For we've credentials to show, or logging And authenticate selected need employee are it’s multi-factor nearly opportunities. solution, into with attractive will $XXX with of use authentication annuity padlocks assets to of a our user prototypes to to of our compliment sales. for additional Bluetooth line TouchLock qualified year been enabled product insurance deployment our with Hello access ownership. client a electronics defense

our revenues in of third contributed hardware both line quarter meaningfully fact, the In to and TouchLock year. second this

channel sales initial in strategy own amazon.com. recently second new www.shopbiokey.com the quarter, and in products. with direct products provide Following we e-commerce for Asia a launching the us site and to our own launching on customer our is launched US to to platform in The these e-commerce sales testing behind

Walmart, social inaugurated what biometric padlocks. of relationships will We intend expand these partnerships also with and driving as bring our are Collectively, these us Bluetooth well Jet, with fingerprint Photo, including presence touching as purchasing marketing partnerships the plan our We the a to and us e-tailers and and out most enterprises side customer customers. PCM consumer. enterprise that we We've reach we and reader the and additional as channels by based At presence both products time, solid other effective expect new enabled with to distributing our on solutions upon in and the via substantially for such stores advertising, and in broad provide enterprise e-commerce sales. look Staples expand our preferences, the retail build line distribution patterns, insights of We Microsoft product to TAMKO strides leading D&H, months. B&H partners Dell, Ingram, same retailers. building retail channel the with TouchLock availability retail made teaming in our coming

our leverage look showcase to products tradeshows. also to We at partners relevant distribution our

duty our is travel with the the the partner. We developed improves partner, pins, example, TouchLock simple working product in event - that now or our group. of access reliable industry Security at and World removing approved of good forgotten by we via vulnerability interest be can or keys this Free Cannes luggage and travel Transportation combination we TouchLock the leads by with and security Administration. which our garnered lost also security the of Tax are TSA were retail and showed For at physical TSA retail the the gathering Association free

locks global tech technology CES XXXX. media showcase show buyers showed New also bringing trends We together and at key to week XX, Vegas, our the last top forum in Las up the together Unveiled X through new leading January to companies, and a CES readers and York, products innovative influencers

product on million are times providing across our a season Network. Though of working as gain will holiday products for approaches, on Windows’ Home and readers for the be October, BIO-key and using HSN next appear ease a to and make gifts. America will several fingerprint over As demonstrate broadcasts possible. exposure tablet SideTouch exposure and few as slated basis times to dates aware standalone and tablets. great some installing XX we for and first HSN soon our expect PC, products. homes readers Shopping investors try readers over we XX PCs day potential will The hosts of and to on our bundles, laptop the we hardware now to the in hours the weeks the offered as SideTouch air

opportunities activity predict. our of sales a software our many size software QX fourth to and the quarter, close balances. at Though our few continue some the the some layers makes companies of were improvement, more purchasing difficult outcomes historically to the license few months. to The we more or next year-over-year and remains advance believe software those very hardware complex large of end and license of look despite a year to modest performance, segment, significant in there of to potential tap portion procurement Despite decision in to pipeline we have as opportunities making seen Turning we working. enterprise results customers the are disappointing relative in funding one

to cyber of we critical decision the of lower proactive makers further In investments measures As part to protect working action cost greater news, security. solutions our make as infrastructure. convenience to known are sure that our attacks in organizations make the is security in and they of see buffet daily we environment, to ownership continue to expect taking on

during a continue software as consumer recurring Growing revenue three we transitioning on to expanding execute main and both service products focused software hardware base, our revenue customers. enterprise on software a long-term of are quarter, Importantly, which strategies our the to business sales objectives. to our license model, our and

the biometric seamlessly identification. BIO-key of biometric a solutions. biometric patented that inclusive Further, are as forms head we with is can biometric posture, solutions means start Beyond developing able an modality. integrated important often our with this agnostic positioned authentication all solutions, be way, software providers play to of to security most solutions in In have said, substantial BIO-key’s including our BIO-key have solutions also which as and security in role other we

to want which on mode Our mention solution I recognition authentication. and measurement facial with of And as iPhone other measurements, did biometric X work key authentication. is biometric the designed many launch of Apple's forms other sole I'm to any its topic the while web of biometric utilizes of briefly

does when declines as line, any such of As great phone in move biometric fingerprint. clear. reflected XX% of and buzz several not biometric believe cause be these modalities use fingerprint is Apple field. other believe into future traded is the high-end we anything, industry, the for of buy in for shock And will market raising values have And the the greater security do through has concern forms waves typical concern the down, concerns sent BIO-key. new publicly recognition been or facial companies Apple's in their the Bottom we in facial recognition of is once for viability the other

technology viewpoint in customer are seeing this for feedback, sound enterprise where this within any solidly is the self-serving, customers. traction government or While we rooted industry may and

I fingerprint will importantly that's use, and enterprise technology. in simplicity customers essence the back we with the of ease in So believe time will over the bounce because government, accuracy bounce the in associated love more that biometric back, our industry

growth we generated, demand I'll our not from near-term that products Apple's impact than understand technology it of we and happy and a focus any standpoint. I'm come answer questions excitement all, but curiosity for launch that have do growth while up right the seeing to has concern confident the call. remain we later In other leave drive there, that it the at may So we in year-over-year summary, our to review long-term our are performance to of our updates, additional potential. software imply I'd and our XXXX of of BIO-key’s revenue like range full-year hardware pipeline revenue reaffirming invite which Today, highlights. and approximately end low are guidance the would and opportunities, Barbara confident year-to-date in operational to on we those growth represents QX With million XXX%. our Based guidance offerings. $X sales Barbara? we prior remain of

Barbara Rivera

you, Thank Mike.

operations objective as government healthcare, Our better numbers and large operate well scale our consumers. retail that contributed and that of customers, which on within as and streamline over industries revenue technology, historically services, data financial XX% serve as to businesses security sensitive customization. such in have typically to of often our financial regulated as such enhanced and is enterprise processes oriented require and consumer These consumers significant retain information have highly

our the mentioned, choice the can Mike a to who us any and adopting enterprise authentication and to most inclusive cost have in well perspective, this streamlining are like seamless enables partnerships. invite and to as balance And compatible resonates our of effective strategic systems, Research our multiple and software tomorrow’s agnostic remains makes us our predict. support investments challenging the most while long, to This with with in world. be seen, hard we path very by and device which XXXX operations have We on to from meet financial both distribution all Ceci helps security also biometric performance. capabilities customers with in R&D a customer develop modes critical maximizing enterprise base, reach where includes complex Also the solutions compelling to us fully Ceci? that the of to relationships organizations QX of development I’d with in-house our almost value and largest terms solutions we the to of Nonetheless, system. making for or advantage remaining BIO-key approach surprisingly focused as enhancements operating on strategy some and disruptive that toward authentication We outsourcing and new position review our demonstrated perform new that needs. possible believe cost operations As integration IT and seek prophecies. way. as leverage our

Ceci Welch

nine [ph] a principally total by for fingerprint XXXX hardware of which reader margin Reviewing in XXX% ’XX amortization connection online QX months and versus new financial XXXX% year. compared QX Barbara. rose revenues maintenance maintenance a XXX% last locks. from three Service in impacted to first XXX,XXX non-renewal services revenues margin. sales a year higher X.X included you, from with the decreased driven from in principally by payment XXX,XXX hardware in in Q, revenue technologies software X.X while Thank revenue Finger contracts. XXXX, customer, software to Gross of sales to existing revenues and related to and higher in expense due QX principally due from to expense noncash revenue. XXXX to increased approximately XXX,XXX and the rose solid to million improvement special of percentage our over in of that across the security QX results, million QX to requirement carry to sales increased service of no XXX,XXX Gross all categories. QX period due period from two recurring decreased X% from to the Sales X.X in ‘XX reflecting by to XX% ’XX QX margins revenue profit hardware mobile million increased XX% of lower QX a mix, the ’XX XXX,XXX to portfolio prior also ’XX, XXX,XXX, such biometric product in XXX,XXX our XXX,XXX an

development, X.X Excluding Hong or margin general principally primarily NASDAQ ‘XX in to QX due per ‘XX administrative Kong loss QX the as from to $X.XX The costs. the higher noncash decrease in XX%. preferred share or would and been selling, million QX compared gross to and the compensation, reduction by XX% $X.XX BIO-key’s net after million offset and operating subsidiary, expenses primarily a QX X.X partially related fees per the X.X to period, dividends and was million amortization, X.X have in increase fees, our BIO-key’s prior-year increased in preferred to share commissions, research profit. after engineering due in loss ’XX. was dividends commitment profit expenses, related the noncash million

QX in $X.XX For versus XXXX. respectively, impact average shares million million [indiscernible] XXXX, the ended been in net and share weighted the on or per ended September for share to of X have ‘XX months results preferred months QX are the share basic the of XX per XX, XX, X.X which and ‘XX or nine after the for September outstanding cost December adjusted reverse loss based split company's XXXX. dividends dividends was share million after BIO-key’s $X.XX preferred reflect of X.X million X.X nine Per

is of or the enterprise from revenue license X BIO-key ability end reader fingerprint software mix. of guidance commented, gross hardware, a of depending achieve with our pipeline, revenue Mike and expectations anticipated our revenue year-end. in the As guidance the We low services million based remain margin sales reiterating sales better and order XXXX XX% confident renewals on by locks to on our the

Series XX, plus other an cash receivables current BIO-key’s basis, excluding approximately Finally, other liquidity breakeven equivalents our to for on compared September non-cash X.X In the of contractual cash common the XXX,XXX And of Reviewing at and shares the remains share cash run of BIO-key price the of the and resulting and approximately question-and-answer cash in shares per XXX,XXX issued investor an third expenses, now our Convertible the of an board million session. XXX,XXX million common and or XXXX, conversion of December common to million proceeds price a September, close X.X shares shares XX,XXX as member shares Subsequent purchase X.XX $X.XX end on approximately amortization board rate stock total Preferred we XXX let’s share. XXX,XXX payable into operator XXXX, of common stock. aggregate plus XXXX. same at and A-X X start converted resources XXX,XXX received basis. member converted X.X annual BIO-key’s to of issuance the of warrants XX, at investor of per dividends for stock existing was to million quarter at accrued X,XXX,XXX. to stock of

Operator

Maxim Group. from comes Kinstlinger Brian Our first question Instructions] with [Operator

Brian Kinstlinger

expectation million to revenue? is just quarter starting it are and order, $X you expectation. SideSwipe, Can you that of maybe for in other through talk locks off, for driving I the products. that fourth take mentioned know seasonally biometric the the about relationships it Maybe fourth but it is strong, what's the the quarter in go

Mike DePasquale

the hardware, that our business some the side and with from consistent our for So new it's across the was but within renewal products. it's in enterprise performance also on and certainly It's have board it's business, segment we we the upcoming also enterprise it software have quarter software, expectation greater a fourth

So combination all it's a those items. of of

Brian Kinstlinger

selling are now now product me In on completely, terms is the you [indiscernible]. take visibility selling are them that there locks, through Is buying of a just that - the you? from partners that biometric

Mike DePasquale

both. So

we We done are, through pursuing finger months with channels, ago, as to in our have our e-tail relationships are we nature we distribution what declared retail similar and scanners.

our see as in the as the missed stores mortar e-tail first locks so well the cycle in we’ll through end for available of and brick will online mortar you in year, spring. the and So the approach channels as mortar be quarter. get to We brick we brick and

I set as up in my e-commerce also, own comments, site. our described We

available way form product products, line, Plus, want You consumers. go to from a this the purchase factors. in our them. can holiday Amazon these so did colors to to different to you different or provide us the not well We good of and able and as got gives ranges, can buy season locks all be gauge by are patterns. specific the which We've price products and e-shop our miss directly site a really to directly buying full products

we why to set our a about So venue ahead locks went really own purchase us weeks up begin this selling two consumers that's just moving to so and and gauge way to what for ago. is want and

by just live our ago, two e-shop we think weeks went site. I about

Brian Kinstlinger

and of the of the Home smaller and world, Obviously, are retail we the bricks and mortars these Targets of Telelock, and with types relationships Depots some these announce you how stores, e-tailers, some do will terms relationships? in -- think larger a of about should of those I hardware And guys? expect and

Mike DePasquale

a in they locks relationships very is have when also all will just lock. those electronic it kinds with the announce because of product not will and ones know We both these we larger store only in notorious that of about are that but this they some products, be right, not products, moving

four pack fingerprint a can Lock is a You Master tooth product, enabled. XX.XX. buy blue enabled, for specialty really This

more product. type electronic So of an it's

a In fact, It was was social video our shot yesterday up was in that and news a why posted there was product this in product. that it's Pittsburgh well form it gift that priced media and colors. particular and different It's product was believed really, channels. interviewer holidays. segment to for factors a reviews kind really the of a the special wonderful that It's available

until and get large mortar cycle able as e-tail So channels, brick are mortar again it's think and first we this now. cycles think of and quarter first a We move good to to type brick up is be towards -- feel and we're the the quarter to in timing retailers cool into that but only very have lot pick first big right product. not won't the going box and we or even and really of everything. channels that it end maybe But most going we're about

Brian Kinstlinger

your very or but to is box take big past, retailers know about sales So way brand changing do see to as I do we while product brand new. in retailers when you social in the awareness thinking model it, capabilities, what is the big direct awareness. I've you box until what asked think I this a with running are media and this obviously taking you the even beginning question improve are create current one

Mike DePasquale

Yeah.

We that yet. haven’t even started

going couple in social You're next campaign see public see to promote of products. the these you'll weeks, venues and whole over a the that

an breadth kicking or which extend addressable and and of market depth have We our program the that we're affiliate will off, marketing market. reach

next So all of place the couple over the in put will be weeks holidays. certainly be of these evolving things for and

products. New up, were with York pick to media reviews, saw going product well unveiled last and We television the now the we're so we media just a over first see media CES yesterday see, at of Thursday. review you'll we see event You'll to of our met representatives, telecast in start XXX

I in be next think we’ll if not this week, going Chicago early week.

of marketing do. the couple over brand weeks got events that plan see of how will evolve we've type awareness create of So and we kind a whole next will we'll that

Brian Kinstlinger

talk And building about you're then lock. in you're terms there the bicycle progress kind making and of the bicycle with lock, you relationships the the of can

Mike DePasquale

next for product a is of and the the that be the weeks, lock both Thursday. shipping the in very the very, to vertical. We'll before so bike TSA last that be big the was That few volume really product in in going hit market at year the Yeah. the event is and marketing end

to successful to it's It's there. very So and think be we market an going easier address we're global. also

As countries a that you around are of an us. in bicycle so for also important thing those the companies attaching promote basic and that and be will globe level transportation the many transportation ourselves know, bicycles of to mode

we'll part be the products those world in market, next them and of to of over around weeks. the begin couple early see December the likely you'll the promoting So

Brian Kinstlinger

or – that one do is you to spread sell of expect that selling shift your multiple is bicycles so partners that vendors. the out you shipments that for And to significant

Mike DePasquale

you been associated everything above, the companies. bicycle with We've number a All of mentioned.

the the products call this form of And In follow-on different or type essence, or particular a factors configurations brainchild in we was, also it, and in in some, lock available. fact, with that additional that for have January, in will CES Japan. we’ll in I’ll company designed product in be new large bicycle

Brian Kinstlinger

that what will profits make kind and on that? what of shipped you what -- up price Have be a you come with for for,

Mike DePasquale

about Well, talk can we MSRP.

Bluetooth fingerprint. combination and bicycle We There's variation both and then a lock. version the a and Bluetooth have fingerprint three versions a of of

with at XX.XX, finger at So with you your retail out the will Bluetooth and phone retail will XX.XX. lock your only fingerprint the which out open or combination can MSRP versions will,

Brian Kinstlinger

recurring software deals about in then in fourth newer quarter, you're software deals more they finally one-time talking type the those nature? are the are license or And opportunities

Mike DePasquale

Both.

pushing, model. we her in ones large Barbara and so that sometimes mentioned want direction. exclusively limit who ourselves customers away moving there but really in on purchase business We are in don't very really bait but and to are we're to a venue a pushing prefer We in certain SaaS walk comments sell fact from that perpetual to we're really

Operator

[Operator Instructions] The [indiscernible]. question next from comes

Unidentified Analyst

other The fourth margin cost those XX% of what however same gross that licensees wondering is nearly and I'm the was than sales, higher the you expect quarter? in

Mike DePasquale

think Dan way to I only on the depends I answer mix. it is say can that the

we have it'll So of obviously, strong mix very obviously, have in be a bit and balances If a be can the to gross relationship if quarter software bit we the a hardware a higher. in range, little software it sales, XX% lower. quite and margin

does on it. depend question mix. So There's it the really about no

Unidentified Analyst

I've time Well, target. Can numbers let got quarter. quarter guess, a for million me probability my if ask minimum X.XX fourth any can then, about we're for about, halfway and meeting through this us of at you that that assign of you for right, the now fourth I give the kind guiding you're

Mike DePasquale

guidance We think we can it, see we’ll it end have wouldn’t and so to the that year. didn't leave believe at if have how we we I make we reaffirmed our

Unidentified Analyst

on think an deal this would half. quarter? deal, second say it that the there the In ATT I was the show you third what mentioned in you in that last collected Can revenues ATT was call, you

Mike DePasquale

AT&T. I don't anything mentioned we believe about

making sure to. I'm don't I not what yeah you're reference -- So

Unidentified Analyst

second deal second you large in in said that a was up show the which there show quarter, Well, the half? didn't up

Mike DePasquale

to we I will second that have we in mentioned we third AT&T. and the quarter, deliver fourth don't also or in related business regards We did in related I believe quarter the to we it's but you're to anything know actually delivered was quarter not making quarter AT&T. that this how to reference was the and a do booked in delivered

Unidentified Analyst

be What assume could Oh, maintenance reasons. assumption, were my that the I lost contacts or the and what were that that were something.

Mike DePasquale

attrition. Just

haven't attrition maintenance years. attrition through frankly. pay they have no we've the that We’ll issues had longer customers We have any quite maintenance really decide just and because will to had

change in what will not not that Some that really just doesn't embedded to a of device natural maintenance experienced. that particular in turnover in and our decide customers bills or that because firmware almost do do pay OEM a that's product it's change we particular not and like it update

the move line time. to to a customer alarmed SaaS, maintenance material just the it anything over that or were decrease as will line as you in or But know, Some of we as naturally no didn't We there also something well large is, context nothing large or a anything that about be per like contract. a of was se customer, lose unnatural. --

Unidentified Analyst

perhaps, Okay. but think do last you now X.X the quarters expect two to to had in is now million couple need about expenses, we about or of BIO-key million we've Last quarter get quarters, question, so the I What moving breakeven extraordinary know, per in for X.X losses. of forward? I million breakeven. you’ve some had

Mike DePasquale

consistent comments, breakeven annualized on mentioned question. end million X.X basis. about great of through It's our believe relatively has Ceci the I a an that That's tail our at year. the been

that and to in expenses. break it's quarters, were it really across than you million, X range that less the or if you're but extraordinary on depends it's and about take right, So right the the give also mix

for you over the quite As spent positioning ourselves get NASDAQ really expenses the the last NASDAQ including XX bit listening, and on a forth. of months we to know, so money

revenue. to again. to were went basically through our our a the believe able So keep expenses are and steady those see going or last actually our significant grow not to or that four like decline where do I and I'd are over expenses We we period declining recurring five years

that with then could the now, again those jettisoning new is an we I expenses we're see annualized think that efficient those I forward, down. non-recurring going our going going for on sales manage and using, But especially again be to right we're our the basis. more business getting We're were technologies expenses breakeven X.X million in mode sure. who back eliminating in way

Operator

line is your comes now Instructions] next Frank [Operator Frank, question open. [ph]. The from Wolf

Unidentified Analyst

Sorry.

So Mike, some do us those you subscription have In the we fourth last Japan are fourth or sell the then to quarter this some guys quarter, assume through bike year give lock you can going for year, can also through in the had yet. sell for feedback you repeat licenses. and any

Mike DePasquale

them locks, but yeah, just, those so going them and answer half first. mentioned only The bike we'll – before. begin of we'll the products just shipping question go, to I have another last on this begin a shipping we're month to end let me as production we We're in the December

have the handle we'll call. strong In that that that renew out business our on report as beginning we'll that year we yes, a of get next of into think possibility last on see there's a the context those better certainly I next will -- subscription that did well. subscription we the So and as year,

Unidentified Analyst

then just about currently have on at recognition you customers other two well, a facial Thanks. you can questions can then short-term and what and also and And Apple as right you then insight now? are you also many give a relatively see why of least or comment don't customers ballpark saying as how the us subscription that little issue

Mike DePasquale

Sure.

don't Keep and know consumer Apple, will we The to That's recognition using customers the, of recognition hearing getting get dedication, don't do from not they're number facial you face and technology is device I’ll market last speak, in that first that. so and our certainly that ID first That's again. that focus take authentication all, the customers. we facial two, focus, on a Number So one. enterprise the not from or the fact. we're ID question as feedback so we device authentication. Touch our mind input for are

classic change our not or cameras to cameras their PCs software, and of that our for that typical use have laptops on see are finger facial customers scanners are and going they our buying that put some buying existing you're recognition. and So

First, keep or that deployed in in the face device. special that's very is camera facial utilized a ID mind ID the

of And it types infrared all functionality has accurate. it's to make so camera an other more to that try

from at least deployed in what happen to that does in-classic typical five have PC generation. tablet your ten your not enterprise on that knows who You’re see your capability that camera notebook years and this mean, and we're I will laptop, now. or not going so comes in

say. it's think I hard to

there think devices forward, for right that be tablets We now. going contender only really we're that for looking so and but are I forth. biometrics to modes notebooks also other not PCs, be strong behavioral biometrics of believe mobile will passive going at a

on So, there it want think, movie face. position York are to be have, other Very you phone technologies to Xth your or and that or again be we face your up in phone. viability Avenue in we the have to difficult it theater hold the to see be $XXXX the to in to these unlock things, that your and unlock and car take long greater on the to to City, if subway you front device way of All driving face other out the your in have your want be hold New term. look do

all to all going are going be be things discussed, going reviewed. they're these So up, come all to to they're

but next convenient, and all determined the pervasive will It's wonderful. in year be over by is whether put technology device the finger scanner the decide use whether them. will think it will I the back Apple to get

Your first question was –

Unidentified Analyst

Yes.

lot Just ballpark, do you right, first a facial have a consideration. that's for you, to expensive and probably that Apple, question, also another recognition for mean I more general,

Mike DePasquale

because a and yeah, camera mind, quite proprietary Well, device. is technology. in their it's the sophisticated it's obviously Keep

other into widely not or device. Samsung be So pervasively available or their HP going vendors to anyone to or Dell it's like integrate to

issue. of So separate that's kind a

that just more it customers. be We these side, to we or quarter of will the On It really to that affordable makes customers certainly for of technology time. and began in we customers the a handful buy Barbara and have subscription able so acquire the second grow over it. think handful change we a push. and that deploy have started

So the good more it's term, good off. and I but companies beginning, this painful think for because can medium and it many it's but long many them going in make us in companies, pay especially to long it will small for sized going it's are be ultimately software the through and term, transition somewhat predictable us

Operator

conclude will turn this the DePasquale our remarks. time, this session. to would like I over At for any Instructions] now conference [Operator question-and-answer closing Mike to back

Mike DePasquale

Capital We X. progress Conference see we outlook to in Imperial Security you you. call York on Thursday, forward December City and the you look on next and our updating at of hope New Thank some our business on to

Please activities. and will provide to ongoing products and also be details we on sure on specific follow us where our our media shortly. our We announce social blog updates

the affiliate Our for social in coverage media we coverage, thank pre-CES information in BIO-key by is lock will you participation that at find Content at your the our today's touch you week including line end of today’s Again, release. met event. call. last your interest for links a media includes of CBS and to

Operator

Thank now presentation. today's conference The concluded. for is attending you

now may disconnect You lines. your

BIO-key International (BKYI) 15 Nov 172017 Q3 Earnings call transcript