BIO-key International (BKYI) Stock Gains Big On $45 Million Contract

BIO-key International BKYI Stock News

BIO-key International, Inc. (NASDAQ: BKYI) is gaining in multiples this morning. The movement started after the company announced that it secured a contract worth about $45 million in the premarket this morning. Here’s what’s going on:

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BKYI Stock Is Up On $45 Million Contract

In the release, BIO-key International said that it secured a contract to provide its biometric software and hardware solutions. The solutions will be provided in support of a Nigerian Ministry of Labour program that is designed to educate, empower and create employment for one million recent college graduates in the region.

The company said that the program will also foster the creation of a secure and scalable e-commerce infrastructure to support a variety of industries across Nigeria. It is expected that the company will generate $45 million in revenue from the contract over the next 18 months.

In a statement, Akintunde Jeje, Managing Director of BIO-key Africa and Chairman at Exponential Launch Africa Limited, had the following to offer:

Our strategic partnership with NELEX is yet another substantial step towards promoting and advocating BIO-key and, more importantly, driving real-life use cases for its identity management technologies. NELEX is the Federal Government of Nigeria’s regulatory agency responsible for creating high quality employment across Nigeria. This high profile relationship provides access to BIO-key’s innovative technologies, and our collaboration will reinforce our position as the premier biometric solutions provider in Nigeria and Africa as a whole.

The above statement was followed up by Mike DePasquale, CEO at BKYI. Here’s what he had to offer:

We are excited to provide biometric solutions in support of this national initiative to employ and empower one million future leaders in Nigeria. This enormous initiative, made possible by the Ministry of Labour in Nigeria, is a testament to the forward thinking of our partner, ELA an affiliate of TTI, as well as our African subsidiary’s leadership.

Nigeria is taking a global leadership role in deploying biometric authentication, as reflected in our recent $30M contract, in partnership with Chams Plc, to facilitate the enrollment and positive identification of millions of customers for telecommunications partners in Nigeria. We believe our technology delivers an excellent combination of security, value and ease of use for enterprise and government customers across Africa, one of the world’s largest and fastest growing economies.

This News Is Huge

Let’s be honest here, $45 million is a massive amount of money. In fact, even after the gains in multiples that we’ve seen today, BIO-key International trades with a market cap of just $25 million.

Take that in for a moment. The contract that BKYI signed here is worth nearly double the company’s market cap. That’s a big deal.

Through this contract, the company will generate the funding it needs to continue and possibly reach profitability. Moreover, with a big contract like this, BKYI is becoming a key competitor in its space. After all, this could lead to a domino effect, bringing more business through the doors.

All in all, there is no way to discont the incredible potential that comes along with the contract signed today.

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