Three listed identity technology companies reported third-quarter results this week. Face recognition developer ROC posted a profitable quarter on record revenue, ID validation company Intellicheck reported a fifth straight profitable quarter despite lower sales, and authentication vendor BIO-key narrowed its loss as software license fees grew.
ROC’s revenue rose 50 percent from a year earlier to a record 8.0 million dollars, and the company reported net income of about 0.6 million dollars, compared with a net loss of about 0.8 million dollars a year earlier. Gross margin reached 90 percent for a second consecutive quarter.
Revenue from ROC ABIS, the company’s automated biometric identification system, rose to 2.2 million dollars from 287,000 dollars after it delivered a federal platform license under its first federal ABIS contract. Its software development kit brought in 2.6 million dollars, up 52 percent, while revenue from its ROC Watch video analytics fell to 0.8 million dollars from 2.5 million dollars after a large government deployment ended. Government research and development revenue rose to 2.2 million dollars.
ROC also won a U.S. Department of Justice contract for its ROC Evidence digital evidence platform worth up to 64.3 million dollars over eight years, including about 7.4 million dollars in the first year, the largest award in its history. “We consider the third quarter an inflection point for ROC,” said chief executive B. Scott Swann.
Intellicheck’s revenue fell 5 percent to 5.7 million dollars, almost all of it from software as a service, while net income rose to 0.5 million dollars from 0.3 million dollars. The company ended the quarter with 13.2 million dollars in cash and no debt. Chief executive Bryan Lewis said a channel partner deployment with one of the world’s largest investment management companies brings its technology into wealth management for the first time, alongside partnerships in freight logistics and automotive credit.
BIO-key said it added three government customers in the Middle East in October, including a government security agency, bringing new customers in the region to eight in seven months. “Governments and banks set the highest bar for identity security,” said chief executive Mike DePasquale.
Its license fee revenue grew 39 percent to 1.3 million dollars, but total revenue slipped to 1.48 million dollars from 1.55 million dollars as hardware and service revenue declined. Its net loss narrowed to 886,000 dollars from 965,000 dollars, and it retired its remaining note during the quarter.
Sources: GlobeNewswire (ROC), SEC, GlobeNewswire (BIO-key)
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By the ID Tech Editorial Team
