BEDFORD, Mass., July 24 /PRNewswire-FirstCall/ -- Aware, Inc. (Nasdaq:
AWRE), a leading supplier of broadband technology and biometrics software,
today reported financial results for its second quarter ended June 30,
2008.
Revenues for the second quarter of 2008 were $6.2 million, a decrease
of 4% compared to $6.4 million in the same quarter last year. For the six
months ended June 30, 2008, revenues decreased 2% to $12.0 million,
compared to $12.2 million in the same period a year ago.
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.
The GAAP net loss for the second quarter of 2008 was $1.3 million, or
$0.05 per diluted share, which included $0.4 million of stock-based
compensation charges in accordance with the provisions of FAS 123(R). This
compared to a GAAP net loss of $1.0 million, or $0.04 per diluted share,
for the same period a year ago. GAAP net loss for the six months ended June
30, 2008 was $2.5 million, or $0.11 per share, compared to a net loss of
$1.1 million, or $0.05 per share, for the same period a year ago.
The Non-GAAP net loss for the second quarter of 2008, excluding the
effect of stock-based compensation, was $0.9 million, or $0.04 per diluted
share. For the six months ended June 30, 2008, the company had a non-GAAP
net loss, excluding the effect of stock-based compensation, of $1.8
million, or $0.08 per share.
Michael Tzannes, Aware's chief executive officer, said, "Biometrics
revenues were at a record high, driven by strong software sales and
continued growth in professional services. Our presence as a software
component provider for border control and secure credentialing applications
has strengthened significantly over the past year. Our DSL test and
diagnostics hardware and software products have now been designed-in across
numerous handheld and testhead supplier platforms. In licensing, we are
continuing with our plan to diversify into new opportunities, the most
exciting of which is home networking in support of the ITU g.hn standard."
Note: Aware's conference call will be broadcast live over the Internet
today, July 24, 2008 at 5:00 p.m. Eastern Time. To listen to the call,
please go to http://www.aware.com/ir. The conference call may also be heard by
calling (719) 325-4776 and referencing the confirmation number 3829447. A
replay of the call will be archived on our website after the call.
About Aware
Aware is a leading technology supplier for the telecommunications
industries. For more than ten years, Aware has pioneered innovations at
telecommunications standards-setting organizations and continues to develop
and market DSL silicon intellectual property and test and diagnostics
products. Its StratiPHY(tm) IP product line supports DSL standards,
including ADSL2+ and VDSL2, and has been broadly licensed to leading
semiconductor companies. Telecom equipment vendors and phone companies use
Aware's DSL test and diagnostics modules and Dr. DSL(R) software to help
provision DSL circuits globally. Aware is also a veteran of the biometrics
industry, providing biometric and imaging software components used in
government systems worldwide since 1992. Aware's interoperable,
standard-compliant, field-proven imaging products are used in a number of
applications, from border management to criminal justice to medical
imaging. Aware is a publicly held company (Nasdaq: AWRE) based in Bedford,
Massachusetts. 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 and
biometrics markets. Aware wishes to caution you that there are factors that
could cause actual results to differ materially from the results indicated
by such statements. The DSL factors include, but are not limited to: we
have a unique business model, our quarterly results are difficult to
predict, our DSL licensing and DSL test and diagnostic businesses depend
upon a limited number of customers, 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, our business could be harmed if our test
and diagnostic hardware and software products have quality problems, we
depend on a single source contract manufacturer for the manufacture of our
DSL hardware products, our manufacturing systems may not be adequate for
our DSL test and diagnostics hardware products, we depend on single source
suppliers for components in our DSL hardware products, and our business is
subject to rapid technological change. The biometric factors include, but
are not limited to: market acceptance of our biometric products, changes in
contracting practices of government or law enforcement agencies,
announcements or introductions of new products by our competitors, delays,
failures or problems in our biometric products, problems in our biometrics
services business, delays in the adoption of new industry biometric
standards, and competitive pressures resulting in lower software product
revenues. 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, 2007 and other reports and filings made with the Securities
and Exchange Commission.
Aware, StratiPHY, and Dr. DSL are trademarks or registered trademarks of
Aware, Inc.
AWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
Revenue:
Product sales $3,948 $3,771 $7,872 $7,236
Contract revenue 1,776 1,575 3,298 3,409
Royalties 443 1,083 874 1,584
Total revenue 6,167 6,429 12,044 12,229
Costs and expenses:
Cost of product sales (1) 624 1,690 1,448 2,186
Cost of contract revenue (1) 1,129 1,410 2,148 2,762
Research and development (1) 3,511 2,650 7,039 5,206
Selling and marketing (1) 1,186 999 2,155 1,872
General and administrative (1) 1,285 1,144 2,478 2,260
Total costs and expenses 7,735 7,893 15,268 14,286
Loss from operations (1,568) (1,464) (3,224) (2,057)
Interest income 315 503 698 1,008
Loss before provision for
income taxes (1,253) (961) (2,526) (1,049)
Provision for income taxes 4 7 13 17
Net loss ($1,257) ($968) ($2,539) ($1,066)
Net loss per share - basic ($0.05) ($0.04) ($0.11) ($0.05)
Net loss per share - diluted ($0.05) ($0.04) ($0.11) ($0.05)
Weighted average shares -
basic 23,869 23,715 23,875 23,687
Weighted average shares -
diluted 23,869 23,715 23,875 23,687
(1) Effective January 1, 2006 the Company adopted Statement of Financial
Accounting Standard No. 123 (Revised), "Share-Based Payment"
(FAS 123(R)). The amounts in the tables above include stock-based
compensation as follows (in thousands):
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
Cost of product sales $ 3 $ 2 $ 6 $ 4
Cost of contract revenue 26 43 60 79
Research and development 160 99 327 184
Sales and marketing 50 25 81 46
General and administrative 154 83 244 174
Total stock-based compensation costs $393 $252 $718 $487
AWARE, INC.
Non-GAAP Financial Measures and Reconciliation
(In thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
GAAP net loss ($1,257) ($968) ($2,539) ($1,066)
Stock-based compensation 393 252 718 487
Non-GAAP net loss ($864) ($716) ($1,821) ($579)
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
GAAP net loss per share ($0.05) ($0.04) ($0.11) ($0.05)
Stock-based compensation 0.01 0.01 0.03 0.03
Non-GAAP net loss per share ($0.04) ($0.03) ($0.08) ($0.02)
AWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
June 30, December 31,
2008 2007
ASSETS
Cash and investments $37,865 $38,549
Accounts receivable, net 5,694 7,661
Inventories, net 2,070 1,424
Property and equipment, net 7,723 7,872
Other assets, net 708 877
Total assets $54,060 $56,383
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $2,760 $2,817
Long-term deferred revenue 330 330
Total stockholders' equity 50,970 53,236
Total liabilities and stockholders' equity $54,060 $56,383
SOURCE Aware, Inc.
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Related links:
http://www.aware.com
http://www.aware.com/ir
http://www.prnewswire.com/comp/107679.html/
CONTACT:
Rick Moberg of Aware, Inc., +1-781-276-4000
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