Liquidity and Capital Resources
Consolidated cash and cash equivalents at June 30, 2007 was $0.6 million.
During the second quarter, BIO-key announced the sale of its Fire/EMS Services Division to ZOLL Data Systems for $7 million in cash. Approximately $4.3 million of the transaction's proceeds were used to repay all of the Company's senior secured debt obligations. Additionally, $0.4 million of the proceeds were placed in escrow pursuant to the Purchase Agreement, and are to be remitted to BIO-key under the terms of the agreement.
DePasquale concluded, "We believe the sale of our Fire/EMS Services businesses to ZOLL Data Systems is a confirmation of what we have been building over the last three years. We sold the unit -- which we viewed as a non-strategic asset -- for over two times what we paid as part of our acquisition of Aether Systems' Mobile Government Division business in 2004. We then applied the proceeds to effectively eliminate all of our senior secured debt obligations and are now positioned with a stronger balance sheet and improved liquidity. We are now better situated to evaluate growth opportunities that will benefit the company in the long-term and grow shareholder value."
Conference Call Details
BIO-key has scheduled a call for Wednesday, August 15th at 9:00 a.m.
Eastern Time to discuss second quarter 2007 financial results. Dialing
303-262-2211 and asking for the BIO-key call at least 10 minutes prior to
the start time can access the conference call live. The conference call
will also be broadcast live over the Internet by logging onto
http://www.bio-key.com. A telephonic replay of the conference call will be
available through August 22, 2007 and may be accessed by dialing
303-590-3000 and using the pass code 11095677#. Additionally, an archive of
the webcast will be available shortly after completion of the call on the
Company's website ('/>"/>
|SOURCE BIO-key International, Inc.|
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