BEDFORD, Mass., May 10 /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, 2005.
Revenues for the first quarter of 2005 were $4.2 million compared to $3.6
million for the same period last year. Net loss for the first quarter of 2005
was $0.3 million, or $0.01 per share, compared to a net loss of $1.1 million,
or $0.05 per share, for the year-ago period.
"We are seeing increased demand for our StratiPHY2+(TM) licensing products
as the industry shifts to higher-value services using ADSL2+," commented
Michael Tzannes, Aware's chief executive officer. "This quarter's highlight
was the addition of a new StratiPHY2+ licensee, which further validates the
value proposition of StratiPHY2+ and increases the number of Aware licensees
to six."
Tzannes also noted that recently published DSL forecasts from Infonetics
Research indicate that 2005 will be a year of strong DSL growth based on the
following projections:
* CO ports will grow from about 58 million in 2004 to 61 million in 2005;
and
* CPE will grow from about 36 million in 2004 to over 78 million in 2005.
"We intend to capitalize on this expanded market opportunity by adding new
customers and increasing the share of the market that uses our StratiPHY
products," commented Tzannes.
He continued, "We expect that a new VDSL2 standard will be consented at
the International Telecommunications Standard meeting in Geneva later this
month. This will be a significant addition to the arsenal of DSL standards
and will deliver higher speeds to infrastructures with fiber penetrating
deeper into phone company networks. We expect that this new standard will act
as an added incentive for a rapid transition to higher speed DSL services. In
anticipation of this standard, we have developed our StratiPHY3 product, the
latest addition to our StratiPHY family. StratiPHY3 will support ADSL and VDSL
standards in a highly flexible, cost effective silicon-level technology
platform."
"In our biometrics products, we have recently launched new products as
part of our strategy to expand the footprint of our industry offerings,"
commented Tzannes. "We are pleased to report that we had first significant
sales of our new e-passport ICAOPack product this quarter."
"We are on the right track with our product offerings. The DSL industry
appears poised to enter an exciting stage of rapid growth and new service
offerings and we intend to remain at the center of that activity. The
biometrics industry is expanding to include the use of biometrics other than
fingerprints for markets outside of law enforcement and we are aggressively
developing new products to address these opportunities," Tzannes concluded.
Note: Aware's conference call will be broadcast live over the Internet
today, May 10, 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) 457-2727 and referencing the
confirmation number 8148346. 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 Factors That May Affect Future
Results in our Annual Report on Form 10-K for the year ended December 31, 2004
and other reports and filings made with the Securities and Exchange
Commission.
Dr. DSL and StratiPHY2+ are trademarks or registered trademarks of Aware,
Inc.
Contact:
Rob Weiskopf
Aware, Inc.
781-276-4000
AWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended
March 31,
2005 2004
Revenue:
Product sales $ 961 $1,223
Contract revenue 2,163 1,278
Royalties 1,100 1,101
Total revenue 4,224 3,602
Costs and expenses:
Cost of product sales 60 337
Cost of contract revenue 840 667
Research and development 2,553 2,671
Selling and marketing 633 604
General and administrative 669 593
Total costs and expenses 4,755 4,872
Loss from operations (531) (1,270)
Interest income 217 123
Loss before provision for income taxes (314) (1,147)
Provision for income taxes - -
Net loss ($314) ($1,147)
Net loss per share - basic and diluted ($0.01) ($0.05)
Weighted average shares - basic and diluted 22,943 22,751
AWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2005 2004
ASSETS
Cash and investments $38,837 $38,266
Accounts receivable, net 3,314 3,070
Property and equipment, net 8,196 8,287
Other assets, net 622 560
Total assets $50,969 $50,183
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $2,278 $1,427
Total stockholders' equity 48,691 48,756
Total liabilities and stockholders' equity $50,969 $50,183
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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