This Bull Now Expects BIO-key International, Inc. (BKYI) Will Beat Out 4Q Expectations Following Massive License Follow-On Order

Maxim's Brian Kinstlinger notes that for an existing Fortune 500 customer to follow-on with a $4 million order, this bodes positively for BKYI's customer satisfaction.


BIO-key International, Inc. (NASDAQ:BKYI) just scored a whopping $4 million follow-on order for its fingerprint biometric security software, sending the Street dashing to buy into a slice of the latest tech market buzz. In turn, investors must be delighted today, with shares currently skyrocketing 32%.

On the heels of the monster license secured for the software maker’s enterprise fingerprint biometric authentication platform, which includes both maintenance as well as services, Maxim analyst Brian Kinstlinger notes that considering this order came from “an existing Fortune 500 customer,” to him, this points to a great sign: “a high level of customer satisfaction.” Considering the Fortune 500 customer had already been using the company’s enterprise software, there must be a great level of satisfaction there for such a “sizable” follow-on order to come into play.

Therefore, the analyst reiterates a Buy rating on BKYI stock with a $5.50 price target, which implies a 134% upside from current levels. (To watch Kinstlinger’s track record, click here)

Considering the tech player anticipates achieving $2.5 million in license revenue during its fourth quarter of this year, to this bull, the writing on the wall glows with potential upside to his expectations. With the “large follow-on order” now in the picture, the analyst finds his fourth quarter revenue projection of $2.8 million now comes across as “conservative.”

“The balance of the license revenue is expected to be recorded over the next three years. Note that the company’s biometric padlocks began selling on Amazon.com […]  However, we believe a solid marketing campaign will be necessary to build brand awareness and drive even stronger revenue in 2018,” continues the analyst.

Kinstlinger contends, “We believe the company is positioned for more consistent and meaningful revenue in 2018. We believe the biometric padlock creates innovation in a product that has not changed in decades. While the company missed the cutoff for getting into large box retailers for the holiday season, several locks are beginning to sell online through its direct site as well as on Amazon.com,” looking ahead to Spring of 2018 where the BKYI team anticipates Touch Locks will be in stores.

On a final bullish note, the analyst commends the software maker’s strides in building partnerships for its biometric bicycle lock, wagering that in addition to three lock offerings: “We also believe BKYI’s special lock being built for TSA could drive significant revenue in 2018.”Chart

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