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BIO-key® Reports Strong 2010 Second Quarter and Six Month Financial Results
Date:7/28/2010

ass="xn-chron">June 30, 2009. 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 three months ended June 30, 2010 were $1,172,577, an increase of 9.6% as compared to operating expenses of $1,070,263 for the same period 2009. This increase was due to higher selling, general and administrative expenses ("SG&A") of approximately 6% related to higher commission expenses and referral fees as a result of higher revenues, and a 23% increase in research, development and engineering costs.

Operating income for the second quarter was $156,633 compared to an operating loss of $858,009 for the same period in 2009. Total net income including derivative and warrant fair value adjustments and income from discontinued operations for the second quarter of 2010 was $234,766 compared to net income of $139,770 for the second quarter of 2009. The 2009 second quarter included $1,030,177 of income related to discontinued operations.

"We are very pleased with our second quarter financial results and the progress we continue to make in deploying and integrating our software solutions with global, industry leaders," said Michael DePasquale, BIO-key's Chief Executive Officer. "With the partner alliances we have today, we believe we are poised for significant top-line growth and profitability, this year. The demand for improved authentication and identification security solutions, and fingerprint biometrics in particular, continues to intensify across many vertical segments of our business, includin
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SOURCE BIO-key International, Inc.
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