BKYI - Earnings call transcript Q2 2021 | BIO-key International, Inc.

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Operator

Good morning, ladies and gentlemen. And thank you for standing by and welcome to BIO-key International’s Second Quarter 2021 Conference Call.

During management’s prepared remarks, all participants will be in a listen-only mode. Afterwards listeners will be invited to participate in a question-and-answer session.

As a reminder, this conference is being recorded today, Tuesday, August 17, 2021. now turn would to call I Ms. Instructions] like the to over [Operator Vice of Johnson, President Kimberly BIO-key’s Product. ahead, go Please ma’am.

Kimberly Johnson

uncertainties are certain CEO, Thank webcast call made statements. Safe Litigation projected you, Fred such believe, like With XXXX. assumptions and materially that call the to morning. statements our Corsentino; Harbor Securities will may identify call Chairman risks Reform and thank forward-looking actual the Ceci subject from results that those that information based are on you using may contain me of made Private for are forward-looking and plan, our estimate, differ remind basis may on or available forward-looking provisions anticipate, Welch. on Revenue of everyone expect, DePasquale; management’s express cause and pursuant these Chief words Mike the Act to joining typically Such and Words and CFO, this beliefs BIO-key’s to project, Officer, and I’d today’s similar of conference currently today’s or as, statements. think, to statements

will undertakes call The circumstances such With undue to only obligations turn I not BIO-key, a forward-looking forward-looking place date. the or see reflect of company other For of other of revise DePasquale. no and to factors Risk to may the Mike? over after that Securities XX-K events with description filings Listeners on affect filed or performance cautioned future reliance statements, the Factors today. Commission. these that in Mike on speak report are company’s the revisions in statements which annual risk Form complete please and to that, today’s Exchange occur and disclose to as

Michael DePasquale

solutions other our solutions half of to integrate that array our parent Software-as-a-Service our from year's review will review to today. Kim, and on-premise including These to results the infrastructure. remarks, my In team our our then continue over of showing is Ceci XXXX, growth and our first PortalGuard’s prepared solid the Kim, initiatives in in migrating and performance are After for We've turn call for thanks Through anywhere existing our optimistic you, our for and call balance envisioned, capabilities including briefly or factors capabilities also of or product customers, allow In to discussed customers’ progress offerings, seeing from we the position. and PortalGuard our provide. calls, everyone including of biometric have support demand Fred followed good and we've access by some solutions, past following that identity that we most what we for our IDaaS our Company. and trends acquisition work strength our offering, and sheet call a with I'll cloud factors our management easily our the Thank joining we industry-leading growth solutions particular, reviewed core key to cloud-based rapidly outlook. last ID-as-a-Service identification and study existing demand support differentiate morning financial that increased of to the IDaaS. broad favorable strengthening recapitalization the

migrate rated In System our touch which interest to and expanded enterprises will also the in over and strong QX, to in Fred College channel IDaaS PortalGuard other customers XX high we are partner to reach We our colleges continue alliance seeing on. our offering. program, we California

applications. the for and Rio user to improve College XX,XXX than experience the them selected and securely IDaaS access security school’s For example, our more to students, of over its enabling platform seamlessly enterprise-wide Hondo XX

in we of of expect support shipments though continue recommence activity, in to a caused the through we Nigeria, reemergence difficult some shipments. these in activity challenges after expect initial XXXX. our do BIO-key starting large-scale with suspension of Though COVID-XX projects point remainder hardware Africa, QX a timing the and Regarding to it's at to impacting ID QX certainty efforts, in predict reacceleration QX to exact the very of

guarantees, service is we recent of accelerate a verification the Bank on that is has mentioned now in activities The pushing will much and process deployment in are with National Nigeria. deliver held the up, down part. for and partners through what have call, contracts of risk the the means that because of Nigerian undertaking cash I've the availability been funds through equipment are be other payment each earnings paid BIO-key event As now to the of process, of we challenge mass bank or providers bank the balancing news World is to This The receiving our the that partners. the required is flowing our to enrollment so to banks of which eliminating seminal by services reducing directly the surety is that we any our and evolve now good funding. it because on as

in managing last over in Our Nigeria heavily XX process been days. has this director engaged the

for financial growth the XXX% increase periods. our of first would - to months year is midpoint XXXX for performance on revenue achieve revenue were $X million in year we the XXX% which XXXX. million of As track ago guidance QX year-to-date, to by $XX full versus to six us represent XXX% revenue up of of over keeps revenue the The our performance the quarter and and able

within to profitability continue this BIO-key range. achieve We revenue guidance to position

would mix depend the software that on hardware and of higher margin However, revenues.

our of presented solutions, our - we Given we building made initiatives, this prospects for and for the our Africa by cloud regarding remain substantial our very excited the IDaaS balance offering, potential growth strong expanding balance sheet, of year. portfolio demand

few business Let to me Fred now to the pass call highlight a highlights. development key

Fred Corsentino

you, Thank Mike.

model. a on the several strength business benefit focused margin, business sustainable, past a technology over heard have Software-as-a-Service revenue BIO-key quarters, you high the leverages recurring As is our that and building of

our an update initiatives of provide I'll key And to the progress. are We revenue this driving the on see QX in performance. started six that have now this months transition benefit and

to our of channel to in to First, over partner were our XXXX new program XXX. bringing we half add able XX as CAP first partners alliance over total or continues the expand

service the managed provide as to geographies. managed We long-term expect of Earlier on our our program system an part substantially this particularly, be new MSSPs MSPs expanded they reach marketing resellers ideal providers and sales as it new fit service to growth, verticals we our sales and this year, a and integrators expands marketing reach value-added key global a expand include customers, security and objectives. beyond program would into basis cost-effectively our with providers, and

XXXk from emerging this QX in derived XXXX. had less than of program we revenue So

new We built for with anticipated distributor half of million the $X.X XXXX. pipeline a have in of of Silicon includes from targeted a This revenue Valley-based IT that large a expect agreement QX. we to opportunities second commence

provide expand core our expect program, work updates to the further we scope further to progress. we of this As on

our in Identity-as-a-Service. Turning PortalGuard or QX, PortalGuard launched to cloud-based call solution which we IDaaS

prospects are its as investments interested infrastructure encouraged new customer most We their upfront IT in are by in very cost. having progress light with low asset

and outside in continue that firewall. from certain challenges high PortalGuard to particularly sudden security data remote in increase demands grappling access see markets the critical are IDaaS, We strong enterprise applications related for for with enterprise education the and to demand

quarter, In PortalGuard to have Approximately, authentication Our and device’s camera logins. including options, development registration biometric migrated mobile of biometric specialized new options. software hardware base predictable customers it enrollment QX, XX% plan to and offerings touchless expect attractively recognition builds upon capability PalmPositive research platform. voice cloud and biometric XX strategy a a with Winner revenue. expand recurring providing XXX authentication quarters, add consulting enable We solution facial revenue easy-to-use biometric this product to technology factors requires Lucintel, capabilities. to active about and BIO-key’s launched firm. management and premier the IAM we authentication XXXX app, a as of subscription a for and Biometrics of PalmPositive, Innovation by as patented to a the solution remain core Android offer while to the mobile that cloud of MobileAuth in Innovation our single scanning already app of our increase supported This second biometric on-premises’ substantial our solutions the on BIO-key priced no authentication growth MobileAuth Award was utilizes PortalGuard touchless as and support adds our selected during wide palm streamline coming multi-factor devices. a and our and multi-factor been modalities very Technology fast IOS secure biometric sign factor penetration we more variety market steadily core other to such the by element a for MobileAuth building and

that continuous applications is authentication expanding IP the and as of the and another awarded run our versus authentication applications eliminates the providing somewhat we single biometric introduced passwords side biometric of behavioral authentication. the uses new which method also client computing session. server, time typically SSO Continuous recognition biometric authentication robust, with We it ongoing of to for is dependent at sick readings or of eighteenth product, a our similar the more client Concierge on patent for library continuous local were point further security start from

growth. on about to next-generation deliver and drive capabilities our excited and great that are these customers solutions value top-line focus continued We to continue developing our

updates. some Kim turn I'll wins to Johnson Now, review recent the call customer marketing-related to other and back

Kimberly Johnson

Fred. you, Thank Great.

well we to that the a our the end-user in options Rio with Colleges foundation in variety our implement with Mike PortalGuard’s customer wide streamlining authentication We authentication mentioned, to XX to on added center several higher sign access their large IT increased biometric another of critical System multi-factor applications over using XXX to had colleges significant systems as user flexibility new security We could a education grow The QX, As California from capabilities, within as College having call provide. QX. that while in the team users. XX,XXX also to the addition selected College Mendocino Hondo announcements PortalGuard single for by improve customer. in customer experience of Community footprint outsourced pilot

our we migrating As customers also are on PortalGuard to Fred model. mentioned, software focused IDaaS existing

College customer are at already migrations, this five our Barstow College. least such Illinois to Community We have drive communications outreach direct Southeastern and migrations direct seen to increasing IDaaS including and due

customers to to working required resources IDaaS to coming IDaaS that be quarters. and move off-premise their from The it and a is penetration allows will We reduced of the maintain benefit the IT host our system. benefits solution in expand

were to creates to new predictability stream program team BIO-key, recurring we we and the a QX, We proud for lead multiple that a campaigns, executed associates development added future to we support the the a provide key IDaaS our will order business expand demo services representative lead technical including further hired several customer revenue it included in our customer greater in prospects. business. generation our webinars, showcase development build business and and two as growth for first PortalGuard Cybersecurity sponsor For In brand our before dedicated EDUCAUSE virtual which builds. visibility

We to solutions. also around to CAP webinar our hosted first quarterly program update BIO-key increase valued awareness channel our partners and our

content multi-factor continue the Ebook we released in webinars, and SAML QX. both survey Ebook, to custom state addition to sign-on In and authentication create such single of as a

with We and efforts us quarterly business, marketing continue to retention new efforts brand optimize customer keep These and on the goals focused analysis. ROI our driving of awareness. defined

the help Communications growth recognition the progress solid off relations financial Through credibility and will build second review further and in by public to quarter. are for for these believe success. CC cyber-focused, a making Welch At Our call securing partner, I hand performance. during several this coverage in positioning our publications and to BIO-key’s continued initiatives, Matters of we brand the time, we market BIO-key

Cecilia Welch

June to XX, prior PistolStar, the which the also increase impact year increased it XXX% XXXX XXXX or second from pandemic. somewhat Covid-XX QX XXXX. attributable the not at QX of revenue quarter The did on therefore, $XXX,XXX revenue beginning increase period license ago Kim. $XXX,XXX included primarily closed fee year The negatively results. and that by the was disruptions you, acquisition the $XXX,XXX impacted to Thank in $XXX,XXX in from is revenue, PortalGuard

the of $XXX,XXX revenue to principally, in of increased first the XXXX, to For in six QX QX XXXX as XX% QX of improved increase revenues, as from QX XXXX six increased XXXX margin period. the increased in to license in an $XXX,XXX much in current profit compared Gross as reflecting first comprised of higher larger as from fees margin $XXX,XXX to XXXX. gross $X.X months license well million months in gross margin. XX% year proportion revenue XXX% XXXX, an

expenses or in XXXX of reported BIO-key a inclusion X.X $X.XX XXXX. first outstanding share working million available the X.X $X.X million of XXXX capital and Weighted the the average a PortalGuard approximately primarily end basic the of XXX% We've successful million million about during including XXXX, assets to QX and net the revenue. of invested the with outstanding higher XXXXfrom customer from This months net to XX% For of growth. of growth and for and loss and per current XXXX, the as of again, in the in million in share This reduced we reflecting In compares XXXX, first lower from and at XXXX gross in with improved product $X.X of the loss million of first also company's increased $X.XX months in million XXXX respectively, $XX.X the the primarily as $X.X through of primarily investments than inventory million to back million to common months months first to six QX higher $X.X the July compares expenses manage $X.X in the of $XXX,XXX, through six of per Operating well the marketing turn shares XXXX, XXXX, $X.X compared reflecting six six $X.X XXXX. ended assets in QX payable loss which million notes revenue or XXXX is for XXXX, $X.X and net QX QX million and with profit XX% million to call SG&A six cash increase due first QX attributable million million sales costs, issues. recapitalization. first results. of which net current operations to were XXXX, the BIO-key’s six the grew volumes stockholders along to significantly XXXX. million the as X.X continued QX and supply development to to stockholders chain for inventory for months increased issued $X that, increase July fundraising in equivalents costs of was With in and service, engineering prepare outstanding. shares and prepaid can months $X.X BIO-key’s questions. the business reflecting operator potential we investor $XX.X cash debt in to no now in We

Operator

Group. Jack Instructions] Thank will you. the Aarde Please question Vander ahead. And go [Operator first from come with Maxim

Jack Vander Aarde

updates. Good guys. morning, Great. the quarterly Appreciate

prepared questions couple a I'll a with Michael Africa in for comments contracts. Just your for question that me. you the start on your In some of remarks. mentioned

change Bank a First, can – additional are you then, of how with and now some of provide what revisit comments the paid. regarding restate in can you paid. being your being are payments sounds how said - you're It the more said you color of like guarantee you terms now World you provide what and

going we forward move beyond that then, has with what catch Just, didn't exactly? we changed if And mean COVID? relationship does that. quite that what I assume

Michael DePasquale

a level Obviously, been add are that around more the Fundamentally, the of central I doing the color - are that. has morning, enrolling that, that and Good been the meaning played the every creating to money has vendors slow. COVID-related is can that one has that down the other street the of thing you. Yes. verification globe. kind reason little But, the was work, repository challenges from there at said and literally getting of actually been perhaps what thank around country ecosystem that I one and issues reasons, the the right? and Jack,

or place so and national slow be the and has $XX can Because equipment has they in population moving. such World do system, of of there stepped population system get in the so that been vendors hundred to-date banks directly percent this million now only put fact, is process in the would enrolled million Nigeria that couple in the and said entire people. a the originally service that of plan a XXXX, plus was enrolled a to has XX which the by the bank financing local end In can that

to a the a will now vendors, order place in start get that process in guarantee, but things example, moving, payment BIO-key really the guaranteed for and there vendor provide BIO-key that services that So is remedy we products other are the is there and for from to directly and bank.

support on So, inventory vendors aggressive more these to programs. the be have, able like for BIO-key get ensuring will the have to in resources we the we where example, ground

Jack Vander Aarde

Or then, And dynamic of just don't without being down the being hardware of expedite? And remove this that before want variant? or more are chicken kind because terms now had or this ship paid. like you country kind hardware this follow-up egg to friction strict this mean Yes. does you a does that, just that a bottleneck now in to shipments the that to of the the does delta kind are fact your altogether? Does – you is of scenario only the re-closing bit of

Michael DePasquale

And means shortage. I course, just absolutely the that. described scenario financial of It was Absolutely. that chip compounding the

getting scenario, the has product be technology. obviously in into see, look call more every challenging And absolutely across we or, we'll within turn our have shipment, ready it products do to that reasonable in the a financials, revenue can when But sector you every inventory as cash into been So, at you months. I'll into of comfortable. coming globe sizable in and now industry because this alleviates virtually

serve to to the it's was position able for in think time especially us forward. well critical us that, to So and we're that a really at in do really this having good I going be going And regard. capital

Jack Vander Aarde

contracts. had the quarter more the just first there. color maybe first you then, the almost looking sales over hardware quarter, just XX-Qs, appreciate In on the I Africa - one And $XXX,XXX. the Great. into

at you Looking quarter hardware shipments didn't second Africa. to the have here,

this You is not to is did that that's within like related first of and you this licensees Is tied Or generate – to associated this delivered there hardware fees revenue - Africa $XXX,XXX. looks this or initial license it contracts? two with deployment? the hardware almost related that quarter is those to

Michael DePasquale

believe that our And business revenue licensed but our associated opine, maybe biometric business. believe you don't could associated Africa. was was as well, I with our, international biometric revenue with PortalGuard I license CC business. that

South has for in bank us from that for large So, identification we Bank or well Capitec – example, user a the X million over verification Africa, million licenses identification customer a have Africa, verification project. X and purchased

that So, African that the South with the not associated revenue have perhaps the opportunity, or through we have. but might the Nigerian been Nigerian contracts

Jack Vander Aarde

Yes, that’s exactly right. Yes.

Michael DePasquale

Yes.

Jack Vander Aarde

great. Okay,

clarity. appreciate Now, the, I

Just just just channel to just – the basis? gears, as revenue you we if question as it's again just mentioned reach your the add remind on you it And much partners, well, small, generate your was you your what think you And curious just what but maybe of target number the there. annual target, Fred, program. of the the the what's so then, contribution was alliance? channel alliance on I I so term And an assume but expect - from a you revenue if target I during the alliance Can then, revenue in how targets? all then, would near quarter switching channel for know was me a baseline. quarter? in have

Fred Corsentino

a it I think was less that XXXk. Yes, said, than as we

growing about that increase will and now. it the close a partners. and $XXX,XXX year new in statements, with some year see our the highlighted a and that the shortly. over that last signed of the a But And training remaining we onboarding right percentage ramp dramatically revenue next on the less we course you'll we and So, into to quarter. will will of recently on go as number see was And information are distributor and than

dramatic I total handle yet, partners. number that won’t on So don't have the be a in but that of increase

if come that progresses. more information So, probably that to on

Jack Vander Aarde

million there. one of the for $X just to terms Michael, Great. year maintained revenue. guidance $XX then, anyone, appreciate guidance, for in the million your color And you I more for Okay. the maybe question of

you color you why more Thank any what there can you provide in are remind that that's aggressive that to business - to Just hit you. can wide guidance? happen remain wondering, And going factors is there anything usual targets What just that in a confident range, of but is there us, as again, - are that? target? or terms you baked any is needs embedded into

Michael DePasquale

and Well, just I there It's we think the – program described second second think half. the for always are three that acceleration planned half. things. been I the in expect Fred the partner CAP

we're our flowing, the to going us help discussed and Number the Africa, contribute we That’s so, And to to makes growth. with and us finance that's obviously, that number encouraged guarantees one. significantly two, feel which And objectives each base just that growth to increases ARR migration we the increases customer. and our cloud revenue comfortable to general, pretty installed our are there. going the and for achieve our the then, in

So, we that that's contribute our expect to growth. another factor to

hey, blended, growth we're feel our whether objectives? may now. things place, our overachieve into really that the And fall Obviously, have really we around good to happen. right guidance we can if all about expect with But and in we comfortable second So, objectives. the staying achieve half

Jack Vander Aarde

I queue. hop in Okay. Great. time to appreciate Thanks. I the going am guys. back

Operator

ahead. will come Richard Please investor. Arnold, go The from next question

Unidentified Analyst

in And to Richard side. to have I speak question. This opportunity I My really I concern is is the appreciate domestic the totally you. impressed a Arnold. three-part by am Africa.

that billed first As quarter the the was in $XXX,XXX paid. been

What expenses part I $X was to to big what well? million, understand and the previous account the breakeven decrease $XX that about Thanks. concerned for improve. Secondly, dependent And conference, Africa, $X part that Africa, $XX the of then, on the million and to up million part that investment shot what Africa? to $X of a am I since cash. as $X the went million represents point, is sent company which thirdly, projection prepaid a was in would for by of in the million million

Michael DePasquale

Great.

one-by-one. questions, So, knock let down me the

That's change first in first with the pay now. to change - again, process it call with The again, we the payment the where to And going I’ll shipments. the cash in in expect see process quarter that banks the directly, process shortly. the very payment the was are from right us

So first. that's the

second you that to the other the the got But contract. hand, advantage or we related of most is But portion the mentioned i.e. equipment reduction, on Obviously, clearly into to had very inventory the with we take we're too is, a right be of to not cash far chip get opportunity in ahead and to The careful manufacturers now, having Africa levels. of turned levels of wanted inventory to our the shortages are difficulty get that we ahead ourselves. sure curve. that

third second inventory products. our The position that component, or traditional component is of

we working on that some in the second are to We technology and new introduce going half. are innovative

so, as development, there some associated well. that is money with And

that inventory I the addresses think question. So,

$X state, you our The business would look how example, related steady grow probably we two and at business, you a last five represent and to for didn't question at independent other of probably the $X our look around – that at guidance PortalGuard it much Africa? biometric of to had general million just about business our in represent is all, was quarters if at Africa. if million the about and Well,

there, not just begin our as millions. just significant on in because do a see although or can - upside significant, in not opportunity single-digit remember, roll of guidance, of dollars you projects the Africa tens is we tremendous millions as out, clearly, there have don't So, we reliance to millions see

that answers as question, hope well. your I So,

Unidentified Analyst

the answers be think morning, I the you least at I to try the if I to my does. we you be Thank questions. and at in question, this are I represent well. saw it you don't and the But I confidence answering projecting. try do doesn't positive last confident hope it, it It for look stock what

Michael DePasquale

Richard. you, Thank

Operator

Instructions] [Operator from Our will next [Ph] investor. Dan with go ahead. question Please come Pamus

Unidentified Analyst

It initial bank guys. sounded from a not comments, your correct? are that Hi done deal. guarantees the like Is

Michael DePasquale

they are. Yes,

Unidentified Analyst

no barriers other to over get is get actually you the to guarantees? There have

Michael DePasquale

is in barriers There always Africa.

Unidentified Analyst

is that that done, there still does what but barriers? they're mean, So,

Michael DePasquale

to little their precocious am is and I a it's again, mean, there. process in being that in ready No, no. I place place, - go.

we latest on to a So, is have. confidence such in that's Richard again And that the especially in there. precocious mentioned, doldrums. an given the the The especially And being to the requirement really outside country, is build funding that's the situation. only that is of significant the something about a could Nigeria, begin ecosystem the of this This basis. - as and always is there But to on to able program economy people daily option. I'm order to a put Africa, almost can in the is out in an there, create challenging. government. monitor get But deploy work We

So, very, strongly a I this. who challenging believe of business. But - for us I those it's believe this. very

and invested in For reward. those have who going us there of here, hang is to significant be

Unidentified Analyst

guaranteed. $XX Okay. million in $XX Can you say contracts million it's how get if will much of the know - I or don't

Michael DePasquale

I iterative. will think be it

in our things it'll that to have goal of to order as of get hardware it. have to going ourselves. I to as mentioned deploying not get be too iterative right, over the to Richard, we to get are inventory moving. things ship And going the able We to immediately initial obviously, get know be think deployed, we far is We're time. all So, not ahead I

we want On to the is be huge other hand, if don't there. product, amounts payment the to be to fact in committing going of

of get fully represent million business. are Clearly, balancing But still near magnitude if in the could it that a $XXX it's act. we deployed, they contracts the So, discussed.

in we're mentioned revenue the have that be to opportunity will Africa forward. products before, some that see in a going additional as You introducing I will on also some see you'll half second the going also significant impact

Unidentified Analyst

last the Well, question on Okay. this.

something, or or next months twelve you for million inventory $X the you've the accumulated? will So at least, XXXX guarantees get for in

Michael DePasquale

so. believe We

Unidentified Analyst

to but knowledge, there that going On continuous few lot able I tangibly? years the you my of to going authentication are patent, are be to patent they buzz And fruition in-screen a about and monetize come fingerprint think to seem to user sensors, be haven't with forward the there a don't ago, biometric issues technology?

Michael DePasquale

a was with very haven't things. much In-screen not Well, area patent we biometric right, point just devices. them move get fingerprint around innovation embedded, fingerprint aggressive two to scanners. continuous particular the that seen mobile in And one at But sensors, associated are there in recently. is you

So, keep in read mind apply a that continuous can facial that authentication also biometric across, or biometric perhaps behavioral patent. to read

has beyond a scanners. just and broader it broader So, use perspective a fingerprint

Unidentified Analyst

system Okay. releases in increase got the Management ready the have have million centers now android ten some question They to Commission. anything system? something on XXXX do been National - is out the tout and with months for what to last not? They've deployment. I enrollment your users is of they that four else? enrollment Identity putting and much increases of Does this awaited a Or that touting

Michael DePasquale

does. absolutely No,

We are very focused.

again which is up the the So time. that of XX%, larger enrollees they centers required over are up are million cities. set with are again total only The XX% XX in enrollment touting to set - up

And people and it's portable. you be And them what have does Our partners you scanning. working we're very device PocketXX if X are vendors, a with on look the very, enrollment. focused device And mobile is there very, center small enrolled. very X scanner, that it's And that very, our order the X get up we're to at low mobile in go have power to set to actually focused. to to very, very the very that's enrolled, country get fingerprint truly

that it's So remote those that out the the time, place take that to are to going of be the getting going creating because a mobile initiative and venue over critical. collecting financial opportunity then be provided - around be people is going enrollments to majority to payments, in enrolled services areas services. And whole data of going the one and was in verification are that jobs for for create the initial enrollment a ecosystem where million be new whole new Nigeria us the we'll the processing, beyond payment within level example creating above for

and management So identity that's also authentication all is a the And where together. huge beyond remote service, providing IDaaS game the on our the It perfect us mobile hardware end this providing ecosystem, for opportunity. is for devices. is software of these the comes huge, the

of all as and mobile have All have cameras things. of well will printers. those They'll as capability, these devices capability, POS barcode fingerprint

that recurring So high the I'll that's real, then verification solid, the enrollments, where the deployments, equipment high, initial and will services. the revenue And follow margin ultimately call I’ll will come. it,

Unidentified Analyst

that's is, The about mobile to touting four thing users cards the about have and they XX sure that not all SIM these in covers were three I country. devices the each am million

were So well I thought they on way. their

I because actual little people the that a or is little just or both a am it cards So trying it they get covered confused about, to it's… confused are is - SIM

Michael DePasquale

no, confused. It’s It's No be don't be individuals. be - don’t don't – individuals.

with SIM it's people. has nothing So It's individuals. do citizens. cards. to It's That

Unidentified Analyst

Alright. That's the back I'll go queue. all. in

Thank see if you anybody has got questions. Let's much. very anymore

Michael DePasquale

You're welcome.

Operator

[Operator Instructions] Frank The next question will come Associates. ahead. go [Indiscernible] from Please

Unidentified Analyst

for up-to-date. and you. Good you gambler since been don't I to but know XXXX. with morning, called still - And I've thank Michael, the you're nice chat if aware,

know there is trying telephone to call today down get zero. You should who stock is someone on the the to

what I right? that understand mean by You

Michael DePasquale

I am not so sure, but…

Unidentified Analyst

that call is what to destroy them the should someone you should you and you is fictitiously SEC if the there But the shareholders, do company. to do Michael, for care trying want tell

Michael DePasquale

certainly We'll into that. Okay. look

Operator

to the session. go would Instructions] like Mike remarks. This to our over back concludes conference for DePasquale closing turn Please [Operator sir. I any ahead question-and-answer

Michael DePasquale

want which for look third to likely to today’s just participating will be forward call, in updating We in on thank quarter I you our November. call. everyone

we’ll mean Partners at present to provide event in the time. plan first Investor Fall October. held in the updates always, week Also, virtual interim to and the a we As Conference, of continue Lytham news

for you Again, thank those them. today. out put will time details We we your have when all

Operator

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

now may You disconnect.

BIO-key International (BKYI) 17 Aug 212021 Q2 Earnings call transcript