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BIO-key Reports Second Quarter 2007 Results
Date:9/3/2007

are of $(0.02) for the corresponding period in 2006.

"We are extremely pleased with our second quarter results as they reflect our continued success in deepening our relationships with existing customers as well as our success in maintaining control over our costs," said Michael DePasquale, BIO-key's Chief Executive Officer. "Our second quarter was a transition period for us as we now focus our energy and resources to expanding our reach in the law enforcement and developing biometrics markets. We received new contract commitments from the Ocean County (NJ) Prosecutors' Office, Kentucky Bluegrass Area Development District and Kingston (NY) Police Department for our law enforcement products. We also completed a significant amount of add-on business including a large biometric commitment from a leading provider of point-of-sale solutions in retail markets."

Total revenue from continuing operations for the six months ended June 30, 2007 decreased 5.5% to $5.2 million from $5.5 million reported for the corresponding period in 2006. Gross profit for the six months ended June 30, 2007 increased 1.8% to $4.2 million. Operating expenses from continuing operations for the six months ended June 30, 2007 decreased 4.6% to $7.4 million from $7.8 million reported for the corresponding period in 2006.

BIO-key's operating loss from continuing operations for the six months ended June 30, 2007 improved by $0.4 million to ($3.2 million) from ($3.6 million) for the corresponding period in 2006.

Net income was $0.8 million for the six months ended June 30, 2007 compared to a net loss of ($4.9 million) for the corresponding period in 2006. However, the net loss amount in 2006, included $2.3 million relating to the early extinguishment of debt compared to a similar item of $404,000 for the six months ended June 30, 2007. Net income per fully diluted share for the six months ended June 30, 2007 was $0.00 compared to a net loss per share of $(0.11) for the first six
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SOURCE BIO-key International, Inc.
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