Biokey International Inc (BKYI)

[SeanBoy]

Here's how MD defined pipeline....

For clarity, the opportunity pipeline as the total value of deals that we could win within the next 12 months. Opportunity pipeline is not backlog or bookings.

That has to be an oversimplification.

We know the backlog and booked work are virtually the same. The best definition I can come up with is that backlog consists of work under contract that has yet to be done and booked worked consists of work that has been agreed to be done in the future with terms to be worked out. Generally these projects don't get billed out until work begins on them and there is always the possibility that something happens and you loose the work.

I think that to MD, the pipeline consists of projects that they are actively pursuing or thinking about pursuing. They can't possibly know about all the deals that they may win in the next 12 months because many of those deals are not even at the concept stage. That's why I called his definition an oversimplification.

So yes, the fact that they maybe be actively pursing $30M in work at any given time, and some certainly are banks, doesn't mean that they will get any of it. The good news is that the pipeline size should keep growing since biometrics are become more popular.

I work for a larger company that also does one of a kind projects and we pretty much use the same language.