BEDFORD, Mass., May 4 /PRNewswire-FirstCall/ -- Aware, Inc. (Nasdaq:
AWRE), a worldwide leader and innovator of broadband intellectual property,
today reported financial results for its first quarter ended March 31,
2006.
Revenues for the first quarter of 2006 were $6.1 million compared to
$4.2 million for the same period last year.
The company reports its net income and basic and diluted net income per
share in accordance with U.S. generally accepted accounting principles
(GAAP), and additionally, on a non-GAAP basis. Non-GAAP net income, where
applicable, excludes the effect of stock-based compensation expense. The
company uses the non-GAAP information internally to evaluate its operating
performance and believes these non-GAAP measures are useful to investors as
they provide additional insight into the underlying operating results.
However, non-GAAP measures are not stated in accordance with, should not be
considered in isolation from, and are not a substitute for, GAAP measures.
A reconciliation of GAAP to non-GAAP results has been provided in the
attached financial tables.
GAAP net income for the first quarter of 2006 was $0.5 million, or
$0.02 per share, which included $0.5 million of stock-based compensation
charges, as this was the Company's first quarter subject to the provisions
of FAS 123(R). This compared to a GAAP net loss of $0.3 million, or $0.01
per share, for the year-ago period. GAAP results prior to 2006 do not
include a charge for stock-based compensation.
Non-GAAP net income for the first quarter of 2006, excluding the effect
of stock-based compensation, was $1.0 million, or $0.04 per share.
Michael Tzannes, Aware's chief executive officer, said, "This quarter
was a solid one from every perspective. Revenues were up because of the
level of demand for our technology and products. New product developments
are underway in all areas to continue to enhance the value we deliver to
our customers. We have a clear leadership position in VDSL2 and are
encouraged by the trend that has emerged to use VDSL2 for infrastructure
upgrades involving fiber and DSL to deliver IPTV and triple play services.
We are on track with our strategy to develop profitable product lines in
DSL licensing, biometrics and DSL test and diagnostics."
Tzannes added, "From the conclusion of today's conference call until
Friday, May 5, 2006 at 5:00 p.m., we invite stakeholders to submit
questions via email to investorquestions@aware.com. We will post questions
and answers next week on our website."
Note: Aware's conference call will be broadcast live over the Internet
today, May 4, 2006 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 (913) 312-1300 and referencing
the confirmation number 2443711 (please note the dial-in number change from
our previous announcement). 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+,
VDSL2, Bonded ADSL2+, Dr. DSL(R), StratiPHY(TM), StratiPHY-Bonded(TM),
StratiPHY2+(TM), StratiPHY3(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 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 a small number of customers, 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 annual report on Form 10-K for the fiscal year ended
December 31, 2005 and other reports and filings made with the Securities
and Exchange Commission.
Dr. DSL, StratiPHY, StratiPHY2+, StratiPHY3, and StratiPHY-Bonded are
trademarks or registered trademarks of Aware, Inc.
AWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
2006 2005
Revenue:
Product sales $1,718 $961
Contract revenue 3,692 2,163
Royalties 724 1,100
Total revenue 6,134 4,224
Costs and expenses:
Cost of product sales (1) 152 60
Cost of contract revenue (1) 1,246 840
Research and development (1) 2,790 2,553
Selling and marketing (1) 814 633
General and administrative (1) 1,004 669
Total costs and expenses 6,006 4,755
Net income (loss) from operations 128 (531)
Interest income 394 217
Net income (loss) before provision for
income taxes 522 (314)
Provision for income taxes - -
Net income (loss) $522 ($314)
Net income (loss) per share - basic $0.02 ($0.01)
Net income (loss) per share - diluted $0.02 ($0.01)
Weighted average shares - basic 23,307 22,943
Weighted average shares - diluted 24,840 22,943
(1) Effective January 1, 2006 the Company adopted Statement of Financial
Accounting Standard No. 123 (Revised), "Share-Based Payment" (SFAS
123(R)). Accordingly, for the three months ended March 31, 2006,
stock-based compensation was accounted under SFAS 123(R) while, for
the three months March 31, 2005, stock-based compensation was
accounted for under APB No. 25 "Accounting for Stock Issued to
Employees." The amounts in the tables above include stock-based
compensation as follows (in thousands):
Three Months Ended
March 31,
2006 2005
Cost of product sales $ 3 $-
Cost of contract revenue 64 -
Research and development 149 -
Sales and marketing 68 -
General and administrative 213 -
Total stock based compensation costs $ 497 $-
AWARE, INC.
Non-GAAP Financial Measures and Reconciliation
(In thousands, except per share data)
(unaudited)
Three Months Three Months
Ended Ended
March 31, 2006 March 31, 2005
GAAP net income $ 522 ($ 314)
Stock based compensation 497 -
Non-GAAP net income $ 1,019 ($ 314)
Three Months Three Months
Ended Ended
March 31, 2006 March 31, 2005
GAAP basic and diluted net income
per share $ .02 ($ .01)
Stock based compensation .02 -
Non-GAAP basic and diluted net income
per share $ .04 ($ .01)
AWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
March 31, December 31,
2006 2005
ASSETS
Cash and investments $38,735 $36,763
Accounts receivable, net 3,250 3,749
Property and equipment, net 8,011 8,075
Other assets, net 1,178 1,154
Total assets $51,174 $49,741
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $2,388 $2,238
Total stockholders' equity 48,786 47,503
Total liabilities and stockholders'
equity $51,174 $49,741
SOURCE Aware, Inc.
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Related links:
http://www.aware.com/
http://www.prnewswire.com/comp/107679.html/
CONTACT:
Rob Weiskopf of Aware, Inc., +1-781-276-4000
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