BEDFORD, Mass., July 31 /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,
2007.
Revenues for the second quarter of 2007 were $6.4 million, an increase
of 34% compared to $4.8 million in the same quarter last year. For the six
months ended June 30, 2007, revenues increased 12% to $12.2 million,
compared to $10.9 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.
GAAP net loss for the second quarter of 2007 was $1.0 million, or $0.04
per share, which included $0.3 million of stock-based compensation charges
in accordance with the provisions of FAS 123(R). This compared to a GAAP
net loss of $1.2 million, or $0.05 per share, for the same period a year
ago. GAAP net loss for the six months ended June 30, 2007 was $1.1 million,
or $0.04 per share, compared to a net loss of $0.7 million, or $0.03 per
share, for the same period a year ago.
Non-GAAP net loss for the second quarter of 2007, excluding the effect
of stock-based compensation, was $0.7 million, or $0.03 per share. For the
six months ended June 30, 2007, the company had a non-GAAP net loss,
excluding the effect of stock-based compensation, of $0.6 million, or $0.02
per share.
Michael Tzannes, Aware's chief executive officer, said, "Our revenues
in the first half of 2006 reflect a healthy mix of DSL test and
diagnostics, biometrics and DSL licensing sales. We are pleased with the
progress we have made in gaining exposure to a growing DSL test and
diagnostics infrastructure and excited about the future this product line
holds. In DSL licensing, we are confident in our ability to increase market
share and add new customers based upon recent industry events including
consolidation in the semiconductor segment and the emergence of a new VDSL
standard. In biometrics, we are pleased with our revenue growth and broad
exposure to the industry through our expansive OEM customer base. Each of
our product lines has gained important traction this year and each of the
markets we are addressing is vibrant and growing."
Note: Aware's conference call will be broadcast live over the Internet
today, July 31, 2007 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) 457-2692 and referencing the confirmation number 3910483. 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, 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, 2006 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,
2007 2006 2007 2006
Revenue:
Product sales $3,771 $1,519 $7,236 $3,237
Contract revenue 1,575 2,241 3,409 5,934
Royalties 1,083 1,030 1,584 1,754
Total Revenue 6,429 4,790 12,229 10,925
Costs and expenses:
Cost of product sales(1) 1,690 176 2,186 328
Cost of contract revenue(1) 1,410 1,151 2,762 2,397
Research and development(1) 2,867 3,129 5,655 5,919
Selling and marketing(1) 999 920 1,872 1,734
General and administrative(1) 927 1,083 1,811 2,087
Total costs and expenses 7,893 6,459 14,286 12,465
Net income (loss) from
operations (1,464) (1,669) (2,057) (1,540)
Interest income 503 459 1,008 852
Net income (loss) before
provision for income taxes (961) (1,210) (1,049) (688)
Provision for income taxes 7 -- 17 --
Net income (loss) ($968) ($1,210) ($1,066) ($688)
Net income (loss) per share ($0.04) ($0.05) ($0.04) ($0.03)
- basic
Net income (loss) per share
- diluted ($0.04) ($0.05) ($0.04) ($0.03)
Weighted average shares
- basic 23,714,593 23,429,733 23,686,556 23,370,954
Weighted average shares
- diluted 23,714,593 23,429,733 23,686,556 23,370,954
(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,
2007 2006 2007 2006
Cost of product sales $2 $5 $4 $8
Cost of contract revenue 43 21 79 85
Research and development 99 396 184 545
Sales and marketing 25 110 46 178
General and administrative 83 213 174 426
Total stock-based compensation
costs $252 $745 $487 $1,242
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,
2007 2006 2007 2006
GAAP net income (loss)
($968) ($1,210) ($1,066) ($688)
Stock-based compensation 252 745 487 1,242
Non-GAAP net income (loss) ($716) ($465) ($579) $554
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
GAAP net income (loss) per share ($0.04) ($0.05) ($0.04) ($0.03)
Stock-based compensation 0.01 0.03 0.02 0.05
Non-GAAP net income (loss) per
share ($0.03) ($0.02) ($0.02) $0.02
AWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
June 30, December 31,
2007 2006
ASSETS
Cash and investments $39,188 $39,802
Accounts receivable, net 4,866 4,738
Property and equipment, net 8,076 8,123
Other assets, net 1,807 1,923
Total assets $53,937 $54,586
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $2,510 $2,886
Long-term deferred revenue 330 330
Total stockholders' equity 51,097 51,370
Total liabilities and stockholders'
equity $53,937 $54,586
SOURCE Aware, Inc.
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Related links:
http://www.aware.com/
http://www.prnewswire.com/comp/107679.html/
CONTACT:
Keith Farris of Aware, Inc., +1-781-276-4000
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