BIO-key International, a global provider in fingerprint biometric identification solutions, advanced mobile credentialing and identity verification technologies, today reported financial results for the fourth quarter and full year ended December 31, 2012
BIO-key International, a global provider in fingerprint biometric identification solutions, advanced mobile credentialing and identity verification technologies, today reported financial results for the fourth quarter and full year ended December 31, 2012.
Total revenue for the three months ended December 31, 2012 was $1,482,835 compared to $545,451 for the same period last year, an increase of 172%. This increase is directly related to orders for new business including expanded services and technologies for several hospitals, reaching agreements with two blood centers to install BIO-key's TruDonor ID and sales developed through growing OEM relationships.
Gross profit and gross profit margin for the three months ended December 31, 2012 were $1,333,583 and 90%, respectively, as compared to $353,325 and 65%, respectively, for the three months ending December 31, 2011. The increase in gross profit percentage was driven primarily by increased core license revenues and decreased third party hardware sales and associated higher costs of goods sold.
Operating expenses for the three months ended December 31, 2012 were approximately $842,000, a decrease of 36% as compared to operating expenses of approximately $1,324,000 for the same period in 2011. This decrease was driven by reversal of bad debt expense and reduced R&D consulting expenses, offset by increased commission related to increased revenue, and the legal and settlement fees related to the alleged patent infringement suit.
Operating income for the period ended December 31, 2012 was $491,967 compared to an operating loss of ($970,590) for the same period in 2011. Total net income for the fourth quarter of 2012 was $485,797 compared to a net loss of ($1,003,286) for the comparable 2011 period.
Full Year Comparisons
Total revenue for the year ended December 31, 2012 was approximately $3.8 million compared to approximately $3.5 million for the year ended December 31, 2011, an increase of 9%. Driving this increase was a higher core license sales, offset with lower third party hardware sales which has a higher cost of goods sold.
Gross profit and gross profit margins for the year ended December 31, 2012 were approximately $3.3 million and 85% respectively, as compared to approximately $2.7 million and 77% respectively, for the year ended December 31, 2011. The increase in gross profit margin is directly attributable to higher licensing fees as a percentage of net sales for the comparable period.
Operating expenses for the year ended December 31, 2012 were approximately $3.2 million, a decrease of 22 % as compared to operating expenses of $4.2 million for the same period in 2011. Adjusting for bad debt expense in both years and the patent infringement legal and settlement charges in 2012, the normalized decrease is 10%.
The Company reported an operating profit of $27,886 compared to an operating loss of approximately ($1.45 million) for the periods ended December 31, 2012 and December 31, 2011, respectively. BIO-key's net income for the year ended December 31, 2012 was $3,267 compared to net loss of approximately ($1.9 million) for the same period in 2011.