Operator
[Operator Instructions]
And our first question comes from Frank Waffles, Private Investor. Please go ahead.
Frank Waffles
Hi, guys. So fingerprint card and Synaptics has made quite a few large sales, I have been reading about electro last year and I know you guys have relationship with IDEX and NEXT Biometrics so I just kind of wondered if you can explain or possibly explain why do you think IDEX and NEXT Biometrics technology is better than fingerprint cards and Synaptics, if you were to believe that and if not, why have those guys not come to you guys to partner with as well. Thank you.
Mike DePasquale
Okay. Frank, that's a good question. This is Mike. Fingerprint card certainly has at least in the recent term and probably into the near term has dominated the market for fingerprint sensors that are being embedded in smartphones especially in China. So they have done very, very well, their volumes are growing and clearly they have a really nice footprint now of installed accounts and OEMs. IDEX is just coming to market with their technology and they will begin shipping in volume at the end of this year. And so I think they will become a very strong alternative for OEMs that are looking to embed fingerprint sensors in not only smartphones and portable mobile devices but also in cards. So I think they will be in the market, they will in the market in the next three to six months. And I think they will get their share of OEM wins. What is the difference between what fingerprint card sales and what IDEX sales, clearly fingerprint card has a silicon based sensor. On the other hand IDEX, their sensor is FIDO and polymer [ph] so it is very, very inexpensive, it is very flexible and sizing can be virtually anything that they so choose. Also IDEX has the capability as the Synaptics with their thin film palmer technology to be embedded under the glass of a device, that is really going to be in the next year maybe to two years is really going to be game changer. Because then these fingerprint sensors don't have to be embedded on our home button as they are in the Galaxy or the iPhone today. They can be embedded anywhere in the device underneath the glass. They don’t have to be on the back. So I think that IDEX is very well positioned. Next on the other hand has a very, very quality product we have incorporated that sensor into our EcoID dongle package USB, , fingerprint sensor package, it is again a really nice size, very inexpensive, very high quality and I think they are going to capture a fair portion of the market as well for maybe larger devices. So if you think about the tablet market, the exiting PC market, you are going to see Next I think playing the errand, doing a really, really nice job because they have again some competitive advantages against the companies like DigitalPersona owned by Crossmatch that have again a very large silicon sensor that they sell but it is also very, very expensive. So each of these players has some strength or some weakness in the market. But here is the beauty about where we play. We support virtually every sensor in the space. So our customers, OEMs, healthcare companies, banks whatever, financial institutions, embedded companies, they can utilize our software platform and now that they can take advantage of the next generation or the latest generation of finger sensor that will be available in the market.
Frank Waffles
Okay, great. And just one quick other follow up question. I guess when those then just came out in your Eco product I believe is compatible with that and I am just wondering if this is to come out, have you guys seen any type of activity pick up in the pipeline or have you got some at least have heard some things from customers about the impact or which other spot. Thanks.
Mike DePasquale
The answer to that question is a resounding yes. Our devices are supported native on to the Windows biometric framework and can be just plugged in and used immediately right out of the box. We support the full implementation and the uptick in activity is absolutely in play. So the answer is yes.
Operator
Our next question comes from John English, Private Investor. Please go ahead.
John English
Congratulation, can you hear me? Okay, I think there is speaker down in my computer. This telecommunication license that was a big surprise for me. And I was wondering if you could narrow down just what area of the telecommunications business they are actually dealing here?
Mike DePasquale
I can't say any more than we announced this order that we received came from an existing and installed base customer for the expansion of a project that we have been working with them.
John English
Great. I hope you are going to narrow down and the bank -- this is in the bank -- you said the bank separate from that right?
Mike DePasquale
Again, John, I really can't comment beyond that but we have a whole series of opportunities in our pipeline, we came into the second quarter with a very, very balanced with a really balanced opportunity list. And I'll call it target forecast list. And we set our guidance based on -- Jay actually is doing a lot of work here. We set our guidance based on some science that he has been doing and evaluating the pipeline, looking at rates and so forth. And so again we are not relying on any one single opportunity but rather relying on the portfolio to deliver the guidance objectives that we need. And that's the way it turned out this quarter.
Operator
And our next question comes from Dan Kamis, Private Investor. Please go ahead.
Dan Kamis
Hi. Good quarter. Got a question on -- how much do you owe on factors as of the second quarter?
Mike DePasquale
I would need to turn that question over to Ceci. I believe she may be able to answer that.
Ceci Welch
Yes. Little under $300,000, we owe to them and they owe obviously more than that, you will see -- you see netted on the balance sheet.
Dan Kamis
Okay. It has been a year since precise ID release I think what the industry indicators we should look for that are would tell us that our base biometric installation is emerging as a viable mission in North America?
Mike DePasquale
I am not sure what your question is, Dan?
Dan Kamis
Well, maybe you can just tell me -- I am looking for things we should be looking for that indicates cloud based biometric is emerging as a market in North America. I mean what would you -- what would these milestones that we would look for?
Mike DePasquale
Okay, okay. I got it; I missed the cloud statement so I apologize. Yes, absolutely right now if you were to look at the landscape, you would feel and see and believe that everything is going to be contained on a device right. Touch ID self contained, Samsung pass follow those applications are all the matching all authentication everything is taking place on the device. And by the way Jay and I have been now speaking to many, many people over the last two years. We believe that, that's exactly what would happen. That on device authentication would be the first major shift and move for consumers to utilize the technology right. And not just finger biometrics but you are seeing voice and face and all the other modalities as well. The issue is that at some point given that every device that's been invented over time has been hacked. The question is for high risk transactions will we continue to see institutions that are responsible and could have tremendous loss associated with transactions, payments in particular, will they accept an authentication of a device that they don't control and really fundamentally cannot ensure or assure that the individual behind that device is the person that it should be. In fact, there was a recent Moby study that showed that banks prefer, would prefer and will be looking for an open finger biometric offered solution to utilize along with their backend authentication engines to consummate at least high risk transactions. And so we believe that the market thermals are going to move in that direction. Is it going to happen over night? We didn't predicted that an over night but we believe it will. The other thing I think I would be looking for is you can see that Microsoft issuer, Amazon Web Services, all of these things are just, and they are growing in leaps and bounds. IBM is in the business in a big way and building cloud infrastructure. At some point, there is going to be a very strong demand for protecting access to that cloud infrastructure and it is going to be a combination of device and again cloud based, server based authentication. So I think it is going to go both ways. One size will not fit all but right now if you look at the space; you see that on device authentication is dominating the venue.
Jay Meier
Dan, this is Jay. I just have one more quick comment to add to that. There is this perception out there that what we are seeing deployed and this by the way goes little bit to Frank's question too. There is this perception out there that what we are seeing deployed today is older is in biometric's land. That the only thing that matter is putting a small fingerprint sensor on a handheld device. The fact of the matter is that's really a first wave, it is really just a drop in the bucket to what's coming. And there is going to be more fingerprint sensors coming to market over the coming years from third parties and outsourcers that are looking for independent algorithms. There is going to be a transfer of the authentication mechanism from low risk value transaction on device to high risk value transactions at the server which implies the cloud, and the marketplace is just starting to wake up to this. If you consider that the hack, there was just announced the couple of weeks ago a major vulnerability in android that allowed exposure of biometric data for anybody to lift. The companies that are supplying the stuff really haven't thought this through all the way yet. So we continue to think that the market is moving toward us. And that you should see that reflected in the size of our pipeline as it starts to grow. We've always said that our business would lag the deployment of those truncate fingerprint sensors. And as people start securing higher risk profile assets our business is going to grow. And I think that's what you are seeing.
Operator
[Operator Instructions] Our next question comes from Jeremy Hellmen from Avenue T Fund. Please go ahead with your question.
Jeremy Hellmen
Hi, good morning, gentlemen. I got a question kind of go into your remarks in the press release about your discussion with Worldwide Touch and as far as strategic partnership and capital infusion go. Assuming you are able to get that over the go line, what would you think if any that -- the resulting balance sheet would mean in terms of your pipeline and maybe being able to have some deals on the table that might have -- might not presently be there as a result of your balance sheet.
Mike DePasquale
That’s a great question. It goes to I think what you are asking is user proceeds. If you raise the money what are you going to do with it and ultimately how is that going to impact the growth of the business and then our revenue. Great question and absolutely spot on. The reason that we believe this is critically important is at this point in time as Jay just described, as I have described in my comments, we believe there is the potential for explosive growth. And with that we need to have the staff and the resources in place to address that need and requirement. That means clearly some additional resources in sales and marketing. It means additional resources in support to help our customers integrate the technology into their platforms. It also means traditional resources and potentially in R&D not in our core technology to build the better algorithm, we've already have a great algorithm. But to be able to build the skins and the interfaces into these infrastructures that are going to be critically important like payment platform, like for example mobile device applications. Things like that so having that level of cash infusion which we really never had in the history of the company, gives us the ability to really jump the market and we have a plan, we have very, very good leadership within the company. We have very good technical leadership. We have fantastic sales leadership with Jim Sullivan at the helm now in Global Sales, all we need now is to build out our infrastructure to continue to do that and that will lead to a growth in the pipeline and ultimately growth in revenue and profit. And as you can see, this model scales and works very, very well as a revenue scales are, net come is going to scale dramatically as well.
Jeremy Hellmen
Okay and then is it proper for me to read through and thinking that the fact that you note this in the press release would peg the probably of nailing this down greater than 50%?
Mike DePasquale
I can't give percentages and probabilities. We announced the MOU, we are continuing our discussions. Worldwide Touch has been a partner of BIO-key for well over a year, year and half. So this is not a new relationship. So we've been working together for quite some time. The other part that's critically important to understand here is that it is almost from a strategic perspective, forget about the investment, we really are a very good match because they have really good capability in building hardware truncate devices embedding sensors in ILT type things, they have great, great capability there and we have great, great capability in the software side of things. And so we really are a very good combination working together I think we are going to create new and innovative opportunities and work in new markets that we couldn't-- wouldn't have even been able to touch today on our own. The other critical and really the third biggest opportunity here is access to the specification market. I mean the market there is growing in leaps and bound, I answered the question about fingerprint card; they are dominating the space right now for embedded fingerprint sensors. Most of those devices that they are delivering are going to the Asia market, that the population is huge. The internet of things again a core key type thing, whether you believe it or not putting a secured device on your toaster or your refrigerator some of its crazy, but at the end of the day there is a very, very good market for connected devices and that also our relationship with them also put us in a very good position to address those particular opportunities.
