Aware, Inc.
Apr 26, 2016

Aware, Inc. Reports First Quarter 2016 Financial Results

BEDFORD, Mass., April 26, 2016 /PRNewswire/ -- Aware, Inc. (NASDAQ: AWRE), a leading supplier of biometrics software and services, today reported financial results for its first quarter ended March 31, 2016.

Revenue for the first quarter of 2016 was $4.8 million, an increase of 17% compared to $4.1 million in the same quarter last year. Operating income in the first quarter of 2016 was $0.9 million compared to $0.4 million in the first quarter of 2015. The increase in revenue and operating income was primarily due to licensing revenue from a 2015 medical imaging software sale.

Net income in the first quarter of 2016 was $0.6 million, or $0.03 per diluted share, which compares to $0.3 million, or $0.01 per diluted share, in the same period a year ago.

Rick Moberg, Aware's co-chief executive officer and chief financial officer, said, "While revenue and operating income increased in the first quarter, these results did not meet our expectations.  When we released earnings for the fourth quarter of 2015, I mentioned that our sales pipeline going into 2016 looked promising, but predicting when those opportunities might turn into revenue was difficult.  Our pipeline remains strong at the end of the first quarter, but forecasting the timing of revenue continues to be a challenge. We continue to be optimistic about the future of our business."

Aware also announced today that its Board of Directors has approved a program authorizing the Company to purchase up to $10 million of its common stock.  The shares may be purchased from time to time in the open market or through privately negotiated transactions at management's discretion, depending upon market conditions and other factors. The authorization to repurchase Company stock expires on December 31, 2017.

About Aware
Aware is a leading provider of biometrics software products and development services to governments, system integrators, and solution providers globally. Our products include SDKs, software components, workstation applications, and a modular, centralized, service-oriented platform. They fulfill a broad range of functions critical to biometric authentication and search, including face, fingerprint, and iris autocapture, image quality assurance, data compliance, capture hardware peripheral abstraction, centralized data processing and workflow, subsystem connectivity, and biometric matching algorithms. The products are used to enable identity-centric security solutions with biometrics for applications including border management, credentialing and access control, intelligence and defense, and law enforcement. Aware is a publicly held company (Nasdaq: AWRE) based in Bedford, Massachusetts.

See Aware's website for more information about our biometrics software products.

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 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.

Risk factors related to our business include, but are not limited to: i) our operating results may fluctuate significantly and are difficult to predict; ii) we derive a significant portion of our revenue from government customers, and our business may be adversely affected by changes in the contracting or fiscal policies of those governmental entities; iii) a significant commercial market for biometrics technology may not develop, and if it does, we may not be successful in that market; iv) we derive a significant portion of our revenue from third party channel partners; v) hardware revenue is likely to decline in future periods; vi) we face intense competition from other biometrics solution providers; vii) our business is subject to rapid technological change; viii) our software products may have errors, defects or bugs which could harm our business; ix) our business may be adversely affected by our use of open source software; x) our intellectual property is subject to limited protection; xi) we may be sued by third parties for alleged infringement of their proprietary rights; xii) we must attract and retain key personnel; xiii) we rely on single sources of supply for certain components used in our hardware products; xiv) our business may be affected by government regulations and adverse economic conditions; xv) we may make acquisitions that could adversely affect our results, and xvi) we may have additional tax liabilities.

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, 2015 and other reports and filings made with the Securities and Exchange Commission.

Aware is a registered trademark of Aware, Inc. Any other trademarks appearing herein are the property of their respective owners.

 

AWARE, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(unaudited)







Three Months Ended
March 31,




2016


2015


Revenue:






    Software licenses


$2,774


$1,649


    Software maintenance


1,282


1,153


    Services


419


1,220


    Hardware


286


-


    Royalties


73


101


           Total revenue


4,834


4,123








Costs and expenses:






    Cost of software licenses


243


-


    Cost of services


213


547


    Cost of hardware


205


-


    Research and development


1,649


1,435


    Selling and marketing


920


972


    General and administrative


724


785


       Total costs and expenses


3,954


3,739








Operating income


880


384


Other income


-


12


Interest income


67


41


Income before provision for income taxes


947


437


Provision for income taxes


312


165








Net income


$635


$272














Net income per share - basic


$0.03


$0.01


Net income per share - diluted


$0.03


$0.01














Weighted-average shares - basic


22,993


22,866


Weighted-average shares - diluted


23,005


22,887


 

 

AWARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(unaudited)








March 31,

2016


December 31,

2015

ASSETS





     Cash and investments


$53,519


$52,101

     Accounts receivable, net


3,839


4,743

     Property and equipment, net


4,874


4,977

     Deferred tax assets


872


999

     All other assets, net


938


799






     Total assets


$64,042


$63,619






LIABILITIES AND STOCKHOLDERS' EQUITY










     Accounts payable and accrued expenses


$1,439


$1,422

     Deferred revenue


5,413


6,016

     Total stockholders' equity


57,190


56,181






     Total liabilities and stockholders' equity


$64,042


$63,619

 

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SOURCE Aware, Inc.

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