BIO-key International (BKYI) 14 Aug 202020 Q2 Earnings call transcript

Good morning ladies and gentlemen. Thank you for standing by. And welcome to BIO-key International's Second Quarter 2020 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 August conference XX, ladies recorded is reminder, Friday, today, XXXX. a gentlemen call this being As I would now to Scott like to turn BIO-key's President the Vice of Marketing. Mahnken, conference over sir. begin, Please

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

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

today. Thank Thank and for you joining the morning good you Scott call everyone.

thank for continued my been subsidiary very our the several our and I colleagues and dedication to new all and and over during the at effects PistolStar we months, their While customers do support dealing past this the want BIO-key have with and of time. Coronavirus challenging partners

date business advancing company results While been in to vision substantially our related for our steps able impacted to the we've strategic take to shutdowns second quarter. multifactor quarter of execution significant the QX Coronavirus, include identity during and were by QX. the in These the close closing solution, and the our initiatives management just access the of the of after second PortalGuard and of acquisition developer PistolStar,

common from plus funding very recapitalized time BIO-key company first raising offering public successfully of and years. have the a gross we our stock warrants. by equivalents for financial footing proceeds on Additionally, million many This sound a $XX in in put has

business, attention such short-term, it disruptions from It solutions. assured who recognize our our full strength this We repaying economic After PistolStar to to to acquisition, mission be or viability long-term around approximately critical of that allows as needs investments providing our company to marketing and in addressing us business BIO-key support larger us will our initiatives demonstrate to This many to other as will allows of that clear our want and solutions subsidiary out help footing our they with risk BIO-key or prospects. a growth COVID Importantly, possible building our cash required do our us be make financial efforts meaningful while suite sales also strong around Africa expanded on customers our and the needs, their company on shareholders. dilution our our customers to serve to also political million. removing for $XX position enhancing utilize or impacts also years. capital existing very sits while customers and now focus due other working note financial a prudent financings, funding our we

is contract and However, choice financial increasingly delays well and has the we network never our our to our be on couple business the had to endure to clearly of base and authentication America, near-term a $XX ground sales backlog to Board growing effective after the to for And in and current the been Management and talent, standstill to were around that their future efficient tap ensure solutions, anticipated, security opportunity needs. solutions opportunity find a being let relationships became sales visibility base of our the to pursue of activity positioned previous on nearly and in business to Alliance customer customer world will eye that fully long-term footing. I no QX almost by reflected for North promising. substantial for Channel customers, To curtailed more able we results and our BIO-key potential of execute Africa, a clear partners. to COVID-XX on our believe quickly the of rapidly but solutions our and the sound and review million of expanded of put we're enduring it COVID-XX of Ceci storm procurement the which that Asia, and we impact is data Despite several months. in challenges, had the market outlook pressed identified

up rebound and are substantial to a open things over optimistic business remain of we in regarding very starting Fortunately, year. the beginning the to see balance

being Our of which day our benefit closed areas, rooted the the one now. on two main PortalGuard quarter enthusiasm first we're of in third acquisition, quarter, our is the in

solutions personnel verticals, demand strength now marketing that and have market of local their solutions government. capabilities customers that months their with expand core we with With and while larger offer seen much our to customer including a base engineering, a PortalGuard, range have of particular and of us benefit announcements, a base strong for we're provide broader you well higher and few as development, education, relevance as As able seen other and of product in services through from sales marketing reach. past state our their over the financial we very

on their enhanced able robust multifactor authentication management We access biometric identity and to contributor our solutions two substantial is is and multifactor see in more to prospective customers. strong bring as also win-win our could future opportunities start sign to existing and to their a important really combination cross-selling existing single that become and we companies customers offer increasingly between capabilities to we're a BIO-key off It should results. an

expected half provider of Nigeria contracts in Secondly, a on Nigerian The million during consulting major in very to large and contracts the initial are the the of XX with commence telecommunications services totaling we division second months. expect and over a two hardware duration with revenue government. $XX software work

delaying might efforts imagine, you of country, initiate As as as practices the down business the COVID-XX distancing contracts. these social to in shut well are

staffing scale the today, third end contracts to such into authentication partners Longer-term, we very quarter, of mobile Bank. on substantial to programs, funding immigration are expect but solidify. attracting our more weeks, in of of year, believe and deals now on be Fred the and we'll a from by which investors large launched areas the of will I.D. efforts just learn of the these to entities for the As over about in second And scope communications external as local beginning payments, and needs these solutions the and half possibly of security, are fourth border this for for update as touch with opportunity like World many deliver this prepare to coming team timing projects work things biometric social welfare the begin. security the to these we'll and we certainly

I'm reluctant to interactions Finally, variables regarding our provide frankly, sort financial with the outlook. business of to too there to understandably a path current the reliable provide timing, more and normal remain any year, respect a to outlook guidance fiscal schedules, and for many

However, positioned the say line our taken and that to steps for BIO-key we PistolStar via I we can our same large growth backlog. at improve have time bottom contract performance have

also actively Asia, in in We and U.S., development engaged business Africa. remain efforts the

over specific Fred. our now to few developments Corsentino a to review the call me Let in Fred business. turn

mentioned. for the the that prospective postponed reasons Mike represent challenging dialogues Thank sales you, XXXX. want was and a QX and reiterate in Mike. later for sales to into I Many opportunities year quarter may were

several made have areas. in progress We

contracts Program announced. The African a broader in including that the in of projects For $XXX,XXX pipeline opportunities XX total potential out previously to two with Alliance we of beyond team CAP now partners, program large our today. see is continue example, we participate includes BIO-key were build XX Channel base important initial the revenue our opportunity and the positioning for to where

was our Coast We also data BIO-keys voter of that biometric statewide a with area statewide here engagement. election to state. was secure the security significance saw progress to registration counties the West of it access solution that announcement is The selected XX providing across first in

of as well. footprint existing geographies to seeing continue this Florida area, our other including expansion uses We eight in and counties in build out interests the from

We also market key provide existing PortalGuard to such and We believe see of BIO-key in does portfolio, of in not synergies especially team PortalGuard’s solutions and PortalGuard significant customers. acquisition for another only to PistolStar cross-selling verticals, several it higher software and the customers offerings in education. additional as complementary base and us, client platform our is solution but a that addition game the its our expands addressable changer PortalGuard biometrics customers, to between selling of opportunities, BIO-key the form MFA

partners to campaign and install customers. base will did continue in we contact to prospects a QX our close we existing During with and and outreach keep existing and potential these major

our as North to in financial and clear, we open on including Durham, fair Thank will share general things recent ball in the movement to economic still had to we With that I PortalGuard university card see review. a you. sales of with the this of to new momentum and clients, the multiple Ceci hope defense Although announcements for too early activity. several to aerospace Carolina, municipality processor build pass in promising process. continue credit We've it's a up all beginning and declare clients the are weeks,

Thank revenue. deployments QX XXXX, you, The fingerprint decrease in readers in lock in the due Fred. our of effects exit BIO-key’s and declined our XXX,XXX to the XXXX revenues compared was business, the QX hardware of mainly XXX,XXX lower to to XXX,XXX in retail COVID-XX. to shipments reduction versus to due smaller due hardware XXXX, of XXXX

due improved margin to attributable efforts XXXX for benefit expense million results services ended for the month a in onetime XXXX exit COVID-XX. a offset the operating first to XXX,XXX from of BIO-key warrant six revenues versus rights. approximately XXXX, to BIO-key’s associated declined in or expense as reported of net non-cash customer million lock new XXXX. due QX lower net expenses X.X share convertible methods costs funding X.X of to for amortization X% Gross reflect largely payment of XX,XXX expense, software XX% QX with to of to non-cash operations to $X.XX reflecting of QX the license XXXX, million, per in X.X or amortization increase compared the primarily software to XXXX with restructuring interest X.XXX XXX,XXX which compared to the notes. at in share XX% $XXX,XXX in hardware the payment QX related deployments also were expense charges stockholders of a XXX,XXX change decrease per and in QX a interest increased from for QX period personnel loss and XXXX, QX primarily X.X the in during to XXth, professional in business company's the due of Protection million million $X.XX effects sales, by net of the a Paycheck Program the For smaller funding down and half to June China.

sale stock shareholders of Subsequent of XX.X six reported or gross of close XXXX the first quarter, warrants X.X and plus million. or months equivalent available for $X.XX per versus X.X the million to common the completed a in BIO-key the net XXXX. BIO-key $X.XX second per For million share of share the to loss proceeds of

of of of and of million million approximately effect call the XX BIO-key the payment payment convertible the to Given offering turn debt X.X overview, million investor to Operator. PistolStar. now the expenses, accounts of approximately the X.X X.X payable, in related cash, in I'd like notes, million questions. the to in with retirement for of operator a With acquisition that the the back has

you. Thank Instructions]. [Operator

Group. question ahead. first of go from Maxim The Aarde Jack comes today Vander Please

PistolStar Congrats guys. Hey, raise. good morning capital acquisition the the and recent on

questions couple for Just of a me.

business of wondering ton can so see been there? that Michael if any far the enterprises, PistolStar view, on multiple deployed is well, that release comments So around going institutions, recently In just solutions forward, that PortalGuard by process the your shows acquisition. a on highlighted the question really moving other any press and is color press quite provide that you educational financial contributions have integration first just releases I and multifactor expected along

question. Yes, Good thank you, Jack.

going For sure, the is companies of very well. integration the very, two

would I combined team at perspective are are and from are, this solution. and his now perspective We marketing integrated and say, from technology in phase a a administratively training to really Fred nearly the as the and go up with point sales fully market well.

For and there's off especially in a colleges -- the through many of end year. campus may higher Obviously, has No them to as sure, may be online know, only there's evolved of many surprise, a to Ed. we courses of for now many, as lot Ed activity, higher as been years. been you steep acceleration this online moving continue

the and and in enterprise local as our government announcements, demand of of robust So you've and seen pipeline Also and a state we a and well. opportunities lot we're of a there opportunity. some as services of have side potential financial seeing lot

mentioned and this full game cards, authentication. a his and biometric authentication that as other keys, the on and and and So changer we And also can complete we provisioning solution. likes. see solution as We in it tokens, complete single comments like customers the Fred mobile support our have factors support also have now biometrics a because full to a pins we can company, provide for passwords, sign

the business years. we expand very in quarters the bullish coming offering, coming of So potential grow to we and the in visibility that as are on PortalGuard the the significantly

of bit noticeable you've that and appreciate also opportunity customers. the if to initiatives helpful generation timeline of the see specifically do talk as from and I'm the there. on very cross-selling midterm, maybe revenue a But revenue comments might near with relates or expectations if term that whole contribution PistolStar a you wondering in terms it any there? you That's think, I more as you and can on expect color comments PortalGuard any begun to you when as actually discussions some already see that, the cross-selling in to presents,

are so a authentication are option, sure, it. for Fred traditional that interested put hundreds there of little using many customers of color and and Yeah, on them options there PortalGuard But I'll right. more in are may let be so biometric more the

we to. hundreds out that of first we opportunity and the cross-selling there that's So are reach accounts can can

large customers, On solution, the biometrics that side, in ones provide commercial company has some their a we with we solution have in a telecommunications very as well that large number the fact, like PortalGuard. of own may be interested

presents, So of that opportunity cross-selling on and side. in itself a the BIO-key

going happen this So is short-term. to

Fred, but you've and it turn any to done campaigns comments? you I'll mentioned other that over base, and programs to outreach think, I already reach the you,

a Yes, functionality PortalGuard lot so BIO-key there's that the certainly platform from of perspective, offers. added

both customers campaign we've so introduce to on our major actually And gone some beginning back other. to each of and a sides are

that's happening. so And

for are some very banking where year, well that that needs. next And are customers campaign be extending PortalGuard the especially We the are going to added helpful. capabilities accounts are as the additional budgeting to for biometric we cycle some have that in in

about outset some have excited year. short-term, mostly the or and for long-term in for we're additional been put cross-selling, mid-term, expenses things as So people of not at things, that budget place may may the accounted the

we're excited it about though. So

investors PistolStar, forward at think can opportunities revenue help provide any a cross-selling provide contracts the there on guidance. if as also from and input outlook. and least the is I well, but remainder if or directionally you you QX, providing environment Fred, are visibility, for guess stance sense uncertain, going not we on revenues? maybe is exclude directional XXXX and comments will QX and any And QX my just appreciate I the uptick you your two anything to can revenue little just great. the myself challenging, I next a But think from maybe -- Africa you like question about result there's understand from you Okay, explicit are forward your and and near-term just -- still do the then of from

that I'll of second think I the Well, sure that it the call right. for say dredge thing one the was quarter can is dredge, we

downs Just of shifted everybody opportunities almost the came our prospect all offices as remotely. and our almost understandable from working to screeching a shut came pipeline of the pipeline is because halt, April -- beginning of to in working which

you in sure right quarter? annual So feel disclosed or million for an the third Yeah, on last sure, do will we basis. so there feel in X.X about fourth on in a was year, the uptick PistolStar comfortable business, revenue, for run as XXXX, be with we comfortable that. which know, rate Drop an basis and we've that

So, to the certainly based in look half sure. were you second from BIO-key an African the do that contracts perspective we the exclude if business, at uptick see and for

you've where what contracts activities have any what upcoming entails, the reopen the are that you projects, just can press these there in with little know for fantastic. That's color guess of provide and focus prepare doing Okay, as of then the what a Africa over -- knowledge there's limited and customers these discussions prepared that with helpful things bit timeline, lot to planning these I two upon as obviously as know commentary with But contracts. far you release. you want but I months? to you beginning do contracts additional you appreciate and your the a in and provide could recent about deployment want been been to say remarks both I release I color and two there. or I things from or know, highlight the press you really to associated engaged regarding, Africa in And the parties touch the I your

of on ground. start state affairs Okay, with the the so let's

So is end with one both ultimately partnership for of a contracts, company. Cham's, telecom company user our is in called which large the a is

about contract shut around. of our being So people move able not to program right. down, that and parcel think is enrolling Part individuals,

First the that can utilize get venues. applications and access then system, enrollment different is for thing you in do them enroll authentication and them, that beyond you or for control

able with to to have and people in to order move enroll. So, begin around be go to

at been that call choke So, stage. has would I point the what this

We aggressively we as as can. are moving forward

employee. full just fact, on Director in In now week a is BIO-key this brought Managing we our by time Africa

infrastructure So support would he I'm out there is didn't and shut the have been way, now rush fundamentally these really, immediately because contracts, on anyway. our we office in build mechanisms And systems months a resource on down things board so will and to we begin and ground. glad nearly I'm we into when first we for closed that four

diligently at making looking So the cash and process the revenue. put, that we're sure startup the don't before we and reviewing

And so us. for that's important

So process. that's part parcel and the of

in here, other like at in well, Nigeria forward, relatively the hand-to-mouth. World context state on as and can to to in to countries we're around happens had as So own people is in of going including mean, Third despite the least markets here country move at World affairs than here I closed as particular, we've still describe, economy, they no stay what And live really particular, really are depends the number of far our there in can strong. and sensitive it countries that, starting Third our of Kenya people because forever. world, the struggle work we more you in shutdown the look the too and afford of the see U.S. around they're In people I to the the relate economy out

to we going. to place be encouraged to say in for difficult in to or get Monday it's all we're still it's the October free movement very But to of going So, we morning until country, see be and get processes us Xst we're can flow those going that predict. going it's

anything soon keep as So And material, and to to we going we date can that's up do report we're informed. will as that. certainly everybody

more That's mean, appreciate yes, on And forward it look this Thank or an we and continues. I well, the congrats I that’s you. time is opportunity to as I and move momentum helpful. along for updates hearing the time. so raise as me. in catalyst recent incredible hope Understood, the

Jack. you, Thank

today Thomas, question is Dan investor. retail a ahead. Please from Next go

going expect third Okay, or quarter? forward hey, break be number at your the what you do would and for least even fourth

as an acquisition, company. annualized biometric accretive million a prior $X Dan, in that an basis, -- it into we is PistolStar company accretive an million $X the profitable to was gate and was the range PistolStar of have our out you to as was breakeven so range. right, the on in know

we're not providing -- it's guidance of context again in So, revenues. the

our So is it's and million But me very depending number. work BIO-key side run to expenses kind the of of financings the in capital of a million We've our with difficult for so to that on administrative, expenses, lot upon a out lot at right? done forth. the look $X.X spout $X.X range, and this raise notes

was So bit the would it profitable. revenue But G&A area. million in PistolStar of spent did and $X.X quite say I a again, in money

So, in breakeven probably to the is going area. same be

includes that PistolStar? And

think I Yeah, so.

just I said, we've later as covering expenses up that rate see we'll there in on, the XXX Q expenses. could speak, is always put the is expenses PistolStar assessed But around the per the one Mike for their month. and If run so

additional [Multiple Speakers]. worried not due loss any we're business about So to there. the

that like non-cash around just but or expenses XXX? includes -- mean isn't X.X, any you say You that

for expenses, cost up, of as Yes, fluctuations it does up, if include it rate the say, should some the covered. it but goes include goes the we does the but and goods not high be non-cash -- all sold of it

offices? Jersey look have they take the to out, a the when plan numbers guess. come into your I at move I'll Is to back Yeah, New

Jersey New in We're offices. our

an we're folks really we our outside office and we in. nature are out we've particular, our and the be the essential to been And because majority really and but down and of business in being not We at the in office, necessarily all of scanners, fingerprint office, test but office had similar shift need Minnesota's are we've a go we the coming so have since of daily, so certainly Minnesota people do that The business, In on to and working out closed readers, not going. we've essential an of basis. systems weekly hundreds been in really and beginning. touched, hardware

team, office in office And majority development through operating of into team also Bedford, the the moved been the New have this Ceci, wide so fully. her and they're and time. New who Mira Hampshire open the

we're a So functional whether in not office, missed we've beat. or remote really sure, for it's

are or Okay, you being spent how is utilizing just much to the get PistolStar founder trying there? point at this feel for a

is He engaged us. with

consulting agreement have flexible We is variable. a and that

a upon time year depending that again, with the So but spends pay. in But that's in It's we that variable. it again business, is agreement, something he is place. us the one

it at supporting with depends in to with the great creative individual He work really we're us. opportunity spends of and know. advantage and time this good us transition. built taking as him certainly So a the he much early least how But you business guy, great in so

a XX working week, average a been of kind XX he's hours So hours number? week, any

In you he range, week to in know, he that wanted sold certainly range, range. full time. not a but obviously hour the in business, Yeah, XX the that retire. That’s why been

full working not time. he's So

adopted is Okay. release no so of I I technology indication client biometric that any any haven't noted that PortalGuard yet? actually early Can sales, assume far.

of closed third the the you'll I quarter. at third We're Certainly any, in we quarter see the in haven't near-term. end that business the the as second here. more in We know, on No, the think quarter. of you reported

you've So even prior close a seen the acquisition. the of number to that related of the announcements are

that So as you'll forward. see of we evolve more

licenses, understand be a Okay, number the information was to data etcetera. releases additional least estimated no so recognized, get or no for data will seeing on revenue at noticing there's the that line, that there's start some recognized revenue was when be? will of a revenue I'm feel but users, press as we I that the or to expect when we Can in the releases,

we was kind I'll when model. hybrid a that subscription flows the and closed a it everything so seen a closed has call the PortalGuard was deal revenue PistolStar sold, and hybrid sell subscription. you've subscriptions Yeah, model announced and of of

first is And especially taken, taken front. for so the up the revenue year is

for telegraph is to sure, going not going see see not not price competitive we're to our you're because context a to market. any users, very revenue dynamic in You're of going the in to what

we our we're we and the One sell for have of that solution the functionality provide big higher is way not model, especially And we to telegraph in sure. to level of going the the the Ed. advantages market that that

still on understand me you, let and that. inventory Are your access able are China here. in you I Are assets now there? cash or to to China your any switch you planning manufacturing readers

That's a great to yes question. The all. answer is

beat So sales. access we to some be going days. closed have was products -- about XX down perspective, our new China a Yes, we're a fingerprint had from to yes, that sensor we've manufacturing regard had to adequate But miss place, introducing. with we about XX for inventory in to so didn't we

the in whole very there, we opportunity there. going solution. now So have develop, yes, itself manufacture that's are design, to And new PortalGuard Director about our enthused we Asia. and Wong, also Managing a is Kelvin to continue presenting

so begin to in in network begin we're already going arrange Asia. throughout -- to to process, but we're partner And our

So Korea, Japan, in in also Hong and Taiwan. Kong,

whole the Asian as throughout greater we So area selling be we're PortalGuard there that going historic this expect to well.

stock day good. in great I of shorted, know That's explains each been seeing. the volumes which the it. degree, we've about volume is XX% to Got

all? be you will that do or or exercised at been -- have process all in at see the if getting warrants As

if warrants, XX%, not accurate see of past the context sure couple comment shorting so I it's of or Yeah, don't all, I have had the the the don't that not. on -- don't can't and over exercised I I'm because warrants -- But weeks. in I first of we

So is the yes. answer

as how Can or…? an to you give many estimate

I really can't, I can't.

or…? to you can here. apparently like different Alright, first that one, reason was was I noticed got press releases think don't if I you replaced, I happened give the named it, you question that Mr. on a Africa Uwazie in two switch he to mind, I'd a two Managing Directors, why

hear together. of the for Actually, and the an the that our they're acquired and connections who BIO-key, the named But we experience expertise working was build and than the to a like necessarily much employee Tunde, actively involved. man oriented has you'll largest who is segment and is of see and more the current But business is very out there and person contracts Tunde responsible for [ph], we believe the our him sales and still organization. in more months. senior person, so sure, from and Tunde Steve, weeks coming is oriented actually

when fully contracts office staffed you Okay, going? African a well keep these would consider

way There's and revenue needs. requirements only depends support our and to that, and it answer on the flow one

determine sure the but For have and in is to initial other opportunities going like pool there bulkhead and resource we Africa and the countries Nigeria, would Ghana in by way, across assume Africa, Kenya. our in I that's

fact, working now. very a opportunity there large In potential

it's need the because just the all flow. So right, not flow Africa, contract as may we travel may revenue harder. on resources different in easy based and places determined gotten and even is as seem across it will be But that

up front? to until build Are sense. are degree definitely you revenues or start That to anybody try are and not you going makes waiting, hire out you some going

partner these board is say It's majority our is have and, to the be Alia also revenue main a a this CEO strategic we happen the which when going I Manny on our contracts. of of flows -- of one TTI going would to members, is

background, a very Cornell good background. financial he's a graduate, Morgan so And J.P. astute businessman,

having well with investment money, the And sync the are closely revenue. pretty he flow about pretty meaning the so I and in

to going our So model. be I think that's

Nigerian that Okay, so? board get contract, them owned in What on major that to will are with owned non-Nigerian and factors are the telecoms there's telecoms on market understanding. this four program Nigeria, one the my chances I drive think might what is the the telecom to do

Well, we're mobile. country with not Nigerian a dealing owned, owned

commercial So they're companies.

So I don't the know anything owned Nigerian company. about

see. What of other move some the I that BIO-key the might to telecoms are factors drive software? to

about number telecom they board. are advantage and competition, assume that we on guess get if right? that it the And we're them. I so providing all they'll some to talking I for need of consider or feel competition, a strategic others It's require,

initial structure capacity involves? just validation the really in as for to they or enrollment or biometric utilizing trying a acting get Okay. e-commerce be functions Cham's, what certificate will will Cham's doing just feel identification or be other project

yeah, be the all could And above. it of

website access thread. is their and are and they're see in areas. just in and identity to multiple that go payments one you in If identity other you'll management the They businesses

question the the answer above. is to So that all of

for Private Investor. you a Please The question Thank your [ph], questions. comes go Jack from ahead. Carvet next

Good questions. had for related Thank just two I presentation. a morning. the -- you

current environment now, talk authentication, fingerprints around when COVID there you a touching is, first with given think of you The bit little concerns think right the you can things. are obviously, about and about

relation tangibly national the at does is to does level that type that is like, you. engagement? what in level, like, elections and relieve maybe towards elections that opportunities that? some you national our at -- secondly, can the Thank of and there that So there looking at fingerprinting, is concerns the direction a kind to engage it look it And what related look have of software, of to

Great. Two good questions.

using right venue. fingerprints, touching, So one or of in anything, that touch about anything let answer about public me you the including the concern have to first a the door touching or

So of fingerprint are enterprise can where on you scanners walmart.com, or bell.com, majority jet.com, devices. those buy for relates our consumer, it Amazon the our or sales, as personal example, fingerprint especially to even

to So is information on and the they using plug and device port are whatever computer access them behind into that your it. USB you

from really are can as no working behind enterprises the fundamentally want you to issues there personal are that So are in home, enroll devices should that individuals our context, who sanitary have devices. multiple be. although it And their corporations, people those people know

Obviously, to if you're put your fingerprints concern their to at and conditions XX sanitary a go wiped or we no again, system, validate scanner The for scenario so kiosk in venue at sanitary personal with example, issue or when And in the that the you fingerprint entry, on right, come regard. are to scanners the the about in need all that have devices airport, down those in, you disinfected global be yourself. down.

And have so they patterns. glass

parcel that's of our into So touch, devices. lives. Uber part wherever It's doors. getting an That's thing be and context the same personal and that any really our majority to going with in the going the there's example you process. issue just be our of no of touch, are of for But parcel sales you that. bulk Everything or and to part opening

elections. is The second question

Fred Coast described So, election know, a our you won management for West we that statewide first as solution state.

think for managed very So I based, that's state local are ever process. like that? Do I us. material and important national scenario really we'll see a county, elections it, doubt because

roll are not want it. -- a of when right. they And vote. the accesses who doubt not we'll ever see national that, technology a the roll And manage workers do our it I so voter to election access access think that they doubt vote. to information, system. to in see a using know biometric not They're for Individuals they're keep the scenario I I that our country Because would using voter we ensure in to to to a that using election. But like our technology driven mind we're validity

political Other fragmented too a in decision to particular do force and technology individuals. would can on that countries, it difficult quite It that. they the adopted like Third just be too country that. our in it's think for because in I World, frankly, very it's have

is of have percentage, makes of much. do so is work, I that had higher sense. separated what is a what the you versus kind from last education local how breakdown The state Thank a standpoint? percentage like on, business question by percentage, focused you versus your percentage say corporate That elections

been business now beginning the is Ed. described available top I know, published integrate certainly the PortalGuard financials to is in but head, as my just as of it's off fair the in You and announced and that don't higher we businesses, of PistolStar’s portion we're a

a say, XX% would if higher is fair in not I So education. plus, portion,

that So, that the would enterprise a that to enterprise, government, kind The government similar city is way it the any in perspective. cuts the enterprises nature of using information. services, really and balance company some local access right. solutions, necessarily The they're to is Durham PortalGuard same but isn't way give retail, using we you could announced financial are, considered which local use of it secure for across

about could best that's give that now. breakdown So right you I the

Appreciate much. so you it. thank Great,

You're welcome.

comes Private next Investor. Richard a The Arnold, ahead. go from question Please

the has going the in million question the in with XX Are a estimates to there margins accrue do when company. is the future, sometime month XX for to Africa my won period profit are about about sales having to any breakeven Yes, from there reliable going the stock why five XX if times, to million how the mentioned year, you X are indeed that times contracts truck be before? per is Nigerian these to buy up that we backing this lotto and and

those great so Yeah, are questions.

So let's a take at them time. one

had now. might the frame estimate it hit. So, and originally even COVID until sooner XX our of We be context thought time months, quicker that's right

so to before, that have not or with we bore things described And but really, myself you slowed. things going I'm as repeat have

take exact people time. And take start so it's just the it's going able because seeing now an enrolled. to -- get have country going move And we be to time around frame don't we to to

again always They're before, discounted of, I reliability. a very that's I contracts Number have connected, are valid Nigeria. mentioned board born actually I in These was is who World because two, and viable closely in one. think they're number contracts. Third discounted contracts. are we member think So the

to and have software for expect But contracts fulfill able these determine profit. sure. credibility. connections are will these then be to the We of So contracts the mix do the profitable And to ultimately have gross going And profitable. do to we between resources and the margin be be we we net that. the and hardware

when huge last sales by about to which of or this promise the was year? seems presently $XX buying less some that I of from on order sometime couple X there to a amount million this $XX million in doing of company a us we the than something question, you years, the $XX,XXX jump very The insider million over meager a in noticed virus for lets see

Was or a that a question? statement

That's think buying, going a these projects along? there question, more are isn't to insider why if you come

I two our we a I our window day before had stock buy announced of so after earnings, had so until day because out just way know, we the weeks any are we're -- announce earnings. two unfortunately third about quarter blacked you the we the Yeah, to end

on decide window. buy stock the a ultimately I great to or want a And, very short the So that's to of don't buy. a speak I it the decision. our and personally bought was based for again, rest of felt It's more they determine personal personally management team. mean, but And it's I window or to up investment. if I any again, them I may Board insiders it's

XXth. have could example, to buy I have do two between for now buy, the buying closely and insiders So, two weeks before can't out more then related is window I And go wait stock today. I parties the quarter, which of before that. the and any approximately to days end means and September stop

Do you doesn't if happens? company contracts regard as these kind not tremendous windfall regard it, the of a it

Absolutely we do.

Okay.

I mean, them April, on slowed everything hit down. this just March and slowed, it of based literally yeah that's be the in we we case. we why down cautious also conditions. we in U.S. about the rolling believe when revenue generating kind way point again, But given to were those do. talk And to announcements everything that are the we business be it at And expecting our and really slowed

predictable. So, no we a stable in difference but here U.S. point the this or there and obviously more venue so more at have it's

I that Okay, a lastly very in Thank and going much comment. now the to back. that's revenues fact is spent be appreciate call. million coming not the equivalent $XX for you Africa just have you

You're welcome.

The Private next question a Please go ahead. Mintel, Jeff comes Investor. from

Hello, good morning.

Good morning, Jeff.

deal, things had like $XX the off. think like then and had, contracts look was we with at that Mike, is big previous one a investors to that write we I I million China, which of the believe

people international with good these these in had are to you case out, mentioned this be fizzled backed here think Africa? are contracts kind have past of looking of the that deals by true. that But is the lot a too contracts I as the that IMF, with

jobs funded World Bank is new X resources Nigeria. Yes, government. some IMF Ministry that million Labor contract comes and the exits create the partially we particular, through heavily and contracts larger the in $XX is for by of by contract, contract funding with to And in these the financing that and funded is the have one, the the million which external one of no a with and the

around and development in when and that we having But of stability and answer that again, we're they contracts. that Obviously, move So some condition it's in that to the once now, is, about started. to the right get begin see growth see you're people more yes, so mobility are. can question these you'll each happens you'll in

given happens the with from did confident going given IMF do delays, you are of definitely now a real it or is whether these months pretty backing risk see forward there's China fizzling with climate the the COVID contracts like Then, the deal that three you to out today, delays do fulfilled? that of are tomorrow, you that But contracts or these going inevitable. think be

over it world largest rest expected largest is the next in And of the populated federal that I think the budget XX is economy in years. recognizes things. world city the particular in their is export, city Oil is the their by Nigeria, is the country two on Well, the driven in Lagos, XX% to of be oil. one, right. the oil, Number Africa. mainly largest based

to be just So there there's recognition order government and lift that jobs, people has commercial to up, enterprise opportunities in for a not opportunities.

Nigeria, important And is investing this Nigeria look to the Nigerian feel Chinese the So would right the but if investment billions the now, opportunity the the now. I to so be population read you billions likes. that There to around Nigerian and of fact all kinds can tap around growth the potential and in resource, goods helping likes so and over in or other it's infrastructure not of and that what there degree, in consumer time. important oil is the government, resource into the and build significant everything, Are population, you'll the in that they some are just world. see right

this his term couple happens a call this the project in and So self-sustaining. Buhari, I in project years important move pet going I of ultimately critically is current of this up do And to the do is particular believe believe that be is that real is it who and I'll country a President, to and to is last go. who if be has only

to Okay, had expecting go mean, company get in the now still contracts, said on the to expects given correct? past, you're -- front like you guys given these money what up work before, I are still really before you China up you the deal. money front you said as

three it the said again, revenue the I flow going revenue the I Well, today when times think flows, -- is right. to cash is going

business we're we way the going So That's way business in to that's have business. in Africa. do do That's done the way Africa. the we

And that's so expectation. the

Thank Dan Investor. you for your go from question. The Please next Thomas, Retail a question is ahead. a follow-up

So supplying you're these your readers that million the for going that X assume BIO-key or and like will we contract to can million be release supplying a says million college graduates, guys? to that graduates is be X college

to is be the services, we going equipment answer around is the training, provide have infrastructure are the support we're that well different yes. as that of as equipment software so that. question and there configurations supplying to going Yeah, to partners answer are But

or I would expect the prior could company the opening would by Okay, so my purchase necessarily up or question be expect a impacted can reader shouldn't we be opening to fully? country COVID, we -- purchased the maybe

not they're around. it COVID. use I able wouldn't guess one how enroll, No impacted move these by could I be if one can don't understand no things to

I challenge. think that's the

the able or individuals resources identity be various a a equipped go a and So with to highly and enroll verticals. to to a develop out ecosystem that management here an valid million goal to in biometric are ecosystem, to population of is have

healthcare and banking the and So insurance in and like. retail and

challenge, And, it's that The So happens that's challenge to right. not the until nobody's start. around. going just is moving

flow what's time, to starting a the I volume scaled think that happen. as as come over I good And that's plan. And a planned that's that's So on scenario board. to ramping will And thing. be individuals with was the mentioned, always revenue the

need a to pop, they -- to order you you those wouldn't months for don't readers, but lead if some X can give few just things mean, you they an build have or…? million Okay, I times, like

It's it. come going to not going in Well, just Dan million It's It's to time. X described be over day. going one ramp. I to

deliver. sure have access resource kind month to in of able be that we not that a the it's deliver we to can And, to equipment So, for period. XX unreasonable

session time, this back now At remarks. the I like any for call turn you. would the you Thank to to has Q&A ended. closing Mike DePasquale

next Time. we'll participating on will things you via LB quarterly September interim Eastern note again you, I P.M. We that for look and XXX release provide to to be news in in our forward X:XX Virtual as press I'll Xst. the participating Micro updates Thank presenting call. updating thank evolve. be everyone. continue Conference Please once you to everyone today's we as And at Thank call. always, on want

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