BIO-key Stock Price Increased Over 5% Pre-Market: Why It Happened

By Amit Chowdhry ● Apr 5, 2021
  • The stock price of BIO-key International, Inc. (NASDAQ: BKYI) increased by over 5% pre-market. This is why it happened.

The stock price of BIO-key International, Inc. (NASDAQ: BKYI) – an innovative provider of biometric and multi-factor identity and access management (IAM) solutions for strong, convenient user authentication and large-scale identity applications – increased by over 5% pre-market. Investors appear to be responding to the company announcing that it has secured a $1.2 million three-year follow-on order from an existing Fortune 500 telecommunications industry customer for support services for its enterprise fingerprint biometric authentication platform. 

This extension will provide ongoing support for the BIO-key biometric authentication system securing access to enterprise resources and confidential customer data by several hundred thousand of the customer’s global personnel and supply chain partners. And unlike arms-length consumer relationships, enterprises tend to have a higher-trust relationship with their employees and supply chain and must affirmatively secure systems against account delegation and handover, not just takeover. 

Many multi-factor solutions offer only on-device biometric authentication like Touch ID or Face ID — which can be problematic because it allows end-users to delegate or share access by enrolling others into their phones or associating other phones with their account. And in the workplace, this approach requires smartphones to be used in sensitive areas such as call centers, interrupts customer interactions in retail, and opens the door to labor law actions or compensation of workers for personal phone use. 

BIO-key’s authentication platform is considered to be more flexible and secure than traditional MFA solutions since the company’s customers can choose between managing and matching biometric credentials on secured servers, in the cloud or on-device, thus enabling a portable biometric user experience that requires no per-user tokens or smartphone use in the workplace. And BIO-key includes privacy and compliance by design, with integrated consent management, privacy disclosures and retention management built into all workflows.

KEY QUOTE:

“We are delighted by this high-profile customer’s renewed commitment to our biometric solutions, demonstrated by their support services contract extension. It confirms the competitive benefits, scalability and value of our biometric solutions for large enterprise customers, where a one-size-fits-all token or phone solution does not provide sufficient security to meet many customers’ needs. BIO-key’s server-secured biometrics provide the ultimate authentication tool for enterprises that have come to the realization that they must be absolutely certain who is accessing their systems on premises or remotely.”

— Jim Sullivan, BIO-key SVP Strategy, Compliance, and Chief Legal Officer

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.