BEDFORD, Mass., Feb. 3 /PRNewswire-FirstCall/ -- Aware, Inc.
(Nasdaq: AWRE), a worldwide leader and innovator of broadband intellectual
property, today reported financial results for its fourth quarter ended
December 31, 2004.
Revenues for the fourth quarter of 2004 were $4.6 million compared to $3.0
million for the same period last year. Net income for the fourth quarter of
2004 was $0.4 million, or $0.02 per share, compared to a net loss of $1.5
million, or $0.07 per share, for the year-ago period.
For the year ended December 31, 2004, revenues were $16.5 million compared
to $10.8 million for the same period last year. Net loss for the year ended
December 31, 2004 was $1.4 million or $0.06 per share, compared to a net loss
of $8.0 million, or $0.35 per share, for the year-ago period.
Michael Tzannes, chief executive officer, said: "Aware's business
continues to head in the right direction. Our StratiPHY2+(TM) licensing
products are positioned to benefit from the industry's move to ADSL2 and
ADSL2+. It is these standards that service providers worldwide are looking to
for new revenue opportunities. With ADSL2 and ADSL2+, as well as the exciting
new developments underway in VDSL2, phone companies are poised to deploy a
broader array of services including television."
Mr. Tzannes continued: "We are optimistic that we can continue to grow our
business and build shareholder value by improving our market share as the new
ADSL2+ and VDSL2 landscapes form. We continue to see opportunities for our
biometrics software products to serve a growing biometrics industry and for
our JPEG2000 products to address opportunities in the medical and digital
imaging markets. With our test and diagnostics products, we intend to
capitalize on service deployment and maintenance challenges facing ADSL
service providers worldwide."
Note: Aware's conference call will be broadcast live over the Internet
today, February 3, 2005 at 5:00 p.m. Eastern Time. To listen to the call,
please go to http://www.aware.com and click on "Investor Relations." The
conference call may also be heard by calling (719) 457-2657 and referencing
the confirmation number 9501493. A replay of the call will be archived on our
website after the call.
About Aware
Aware, Inc. designs, develops, licenses and markets DSL technologies that
enable broadband communications over existing telephone networks. Its
solutions, including splitterless G.lite, full-rate ADSL, ADSL2, ADSL2+, Dr.
DSL(R), StratiPHY2+(TM), and G.SHDSL, address central office as well as
customer premise requirements. Aware is also a leading provider of standards-
based biometric transaction and image compression software toolkits. More
information about Aware can be found at http://www.aware.com.
Safe Harbor Warning
Portions of this release contain forward-looking statements regarding
future events and are subject to risks and uncertainties, such as estimates or
projections of future revenue and earnings and the growth of the DSL market.
Aware wishes to caution you that there are factors that could cause actual
results to differ materially from the results indicated by such statements.
These factors include, but are not limited to: we have a unique business
model, our quarterly results are difficult to predict, we depend on a limited
number of licensees, we derive a significant amount of revenue from one
customer, we depend on equipment companies to incorporate our technology into
their products, we face intense competition from other DSL vendors, DSL
technology competes with other technologies for broadband access, and our
business is subject to rapid technological change. We refer you to the
documents Aware files from time to time with the Securities and Exchange
Commission, specifically the section titled Risk Factors in our quarterly
report on Form 10-Q for the quarter ended September 30, 2004 and other reports
and filings made with the Securities and Exchange Commission.
AWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
2004 2003 2004 2003
Revenue:
Product sales $1,531 $1,582 $4,759 $4,309
Contract revenue 1,950 627 7,575 2,840
Royalties 1,116 815 4,151 3,694
Total revenue 4,597 3,024 16,485 10,843
Costs and expenses:
Cost of product sales 132 414 862 1,043
Cost of contract revenue 687 570 2,683 1,567
Research and
development 2,328 2,560 10,013 12,074
Selling and marketing 587 570 2,379 2,407
General and
administrative 616 530 2,473 2,387
Total costs
and expenses 4,350 4,644 18,410 19,478
Net income (loss)
from operations 247 (1,620) (1,925) (8,635)
Interest income 177 135 558 597
Net income (loss)
before provision
for income taxes 424 (1,485) (1,367) (8,038)
Provision for income taxes - - - -
Net income (loss) $424 ($1,485) ($1,367) ($8,038)
Net income (loss)
per share - basic $0.02 ($0.07) ($0.06) ($0.35)
Net income (loss)
per share - diluted $0.02 ($0.07) ($0.06) ($0.35)
Weighted average
shares - basic 22,838 22,730 22,785 22,713
Weighted average
shares - diluted 23,624 22,730 22,785 22,713
AWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
2004 2003
ASSETS
Cash and investments $38,267 $38,964
Accounts receivable, net 3,070 2,449
Property and equipment, net 8,287 8,921
Other assets, net 559 690
Total assets $50,183 $51,024
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $1,427 $1,384
Total stockholders' equity 48,756 49,640
Total liabilities and stockholders' equity $50,183 $51,024
Contact:
Rob Weiskopf
Aware, Inc.
781-276-4000
SOURCE Aware, Inc.
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Related links:
http://www.aware.com
Company News On-Call:
http://www.prnewswire.com/comp/107679.html
CONTACT:
Rob Weiskopf of Aware, Inc., +1-781-276-4000
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