BEDFORD, Mass., July 30, 2019 /PRNewswire/ -- Aware, Inc.
(NASDAQ: AWRE), a leading supplier of biometrics software and
services, today reported financial results for its second quarter
ended June 30, 2019.
Revenue for the second quarter of 2019 was $3.0 million compared to $3.8 million in the same quarter last year.
Operating loss in the second quarter of 2019 was $1.2 million compared to an operating loss of
$0.4 million in the second quarter of
2018.
The decrease in revenue and higher operating loss in the current
three month period compared to the corresponding period last year
was primarily due to: i) lower biometrics software license sales,
ii) lower imaging software license sales; and iii) lower services
revenue. This was partially offset by lower total costs and
expenses.
Net loss in the second quarter of 2019 was $0.9 million, or $0.04 per diluted share, which compares to a net
loss of $0.2 million, or $0.01 per diluted share, in the same period a
year ago.
Revenue for the first six months of 2019 was $6.74 million compared to $6.67 million in the same six month period last
year. Operating loss for the first six months of 2019 was
$1.2 million compared to operating
loss of $1.1 million in the same six
month period last year. The increase in revenue was primarily due
to higher services revenue that was partially offset by lower
imaging software license sales. The higher operating loss was
primarily due to higher total costs and expenses that was partially
offset by higher revenue and income from a patent arrangement.
Net loss for the first six months of 2019 and 2018 was
$0.7 million, or $0.03 per diluted share for both periods.
Kevin Russell, Aware's chief
executive officer and president, said, "Our revenue results for the
second quarter did not meet our expectations. Our quarterly
revenue and earnings fluctuate based on the timing of the delivery
of licenses and services for projects. Financial results this
quarter reflect these fluctuations. We continue to make
investments in product and business development with respect to
enhancing our biometric solutions in the government, commercial and
mobile markets and are encouraged by the level of interest in our
product offerings and, in particular, Knomi™, our
mobile biometric authentication framework solution."
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, iris, and voice capture, sample
quality assurance, data compliance, capture hardware peripheral
abstraction, centralized data processing and workflow, subsystem
connectivity, and biometric matching algorithms. The products apply
biometrics to enable identity-centric security solutions for
applications including banking and payments, 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) the biometrics market may not experience significant
growth or our products may not achieve broad acceptance; 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) we rely on third party software
to develop and provide our solutions and significant defects in
third party software could harm our business; xi) our operational
systems and networks and products may be subject to an increasing
risk of continually evolving cybersecurity or other technological
risks which could result in the disclosure of company or customer
confidential information, damage to our reputation, additional
costs, regulatory penalties and financial losses; xii) our
intellectual property is subject to limited protection; xiii) we
may be sued by third parties for alleged infringement of their
proprietary rights; xiv) we must attract and retain key personnel;
xv) we rely on single sources of supply for certain components used
in our hardware products; xvi) our business may be affected by
government regulations and adverse economic conditions; xvii) we
may make acquisitions that could adversely affect our results, and
xviii) 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, 2018
and other reports and filings made with the Securities and Exchange
Commission.
Aware and Knomi are trademarks or registered trademarks of
Aware, Inc. Any other trademarks appearing herein are the property
of their respective owners.
AWARE,
INC
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(in
thousands, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenue:
|
|
|
|
|
|
|
|
|
Software licenses
|
|
$1,189
|
|
$1,659
|
|
$2,725
|
|
$3,133
|
Software maintenance
|
|
1,320
|
|
1,402
|
|
2,675
|
|
2,696
|
Services
|
|
503
|
|
699
|
|
1,344
|
|
842
|
Total
revenue
|
|
3,012
|
|
3,760
|
|
6,744
|
|
6,671
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of services
|
|
321
|
|
370
|
|
839
|
|
420
|
Research and development
|
|
2,091
|
|
1,887
|
|
3,851
|
|
3,762
|
Selling and marketing
|
|
909
|
|
1,013
|
|
1,736
|
|
1,937
|
General and administrative
|
|
874
|
|
871
|
|
1,595
|
|
1,656
|
Total costs and
expenses
|
|
4,195
|
|
4,141
|
|
8,021
|
|
7,775
|
|
|
|
|
|
|
|
|
|
Patent related
income
|
|
-
|
|
-
|
|
49
|
|
-
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(1,183)
|
|
(381)
|
|
(1,228)
|
|
(1,104)
|
Interest
income
|
|
278
|
|
201
|
|
553
|
|
363
|
Loss before provision
for (benefit from) income taxes
|
|
(905)
|
|
(180)
|
|
(675)
|
|
(741)
|
Provision for (benefit
from) income taxes
|
|
33
|
|
8
|
|
35
|
|
(58)
|
Net loss
|
|
($938)
|
|
($188)
|
|
($710)
|
|
($683)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share –
basic
|
|
($0.04)
|
|
($0.01)
|
|
($0.03)
|
|
($0.03)
|
Net loss per share –
diluted
|
|
($0.04)
|
|
($0.01)
|
|
($0.03)
|
|
($0.03)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares – basic
|
|
21,537
|
|
21,534
|
|
21,551
|
|
21,540
|
Weighted-average
shares – diluted
|
|
21,537
|
|
21,534
|
|
21,551
|
|
21,540
|
AWARE,
INC
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
June
30,
2019
|
|
December
31,
2018
|
ASSETS
|
|
|
|
|
Cash and
investments
|
|
$48,959
|
|
$51,612
|
Accounts and unbilled
receivables, net
|
|
6,595
|
|
5,289
|
Property and equipment,
net
|
|
3,933
|
|
4,085
|
Deferred tax
assets
|
|
5,334
|
|
5,171
|
All other assets,
net
|
|
234
|
|
284
|
|
|
|
|
|
Total assets
|
|
$65,055
|
|
$66,441
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued
expenses
|
|
$1,520
|
|
$1,445
|
Deferred revenue
|
|
2,424
|
|
3,099
|
Total stockholders'
equity
|
|
61,111
|
|
61,897
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$65,055
|
|
$66,441
|
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content:http://www.prnewswire.com/news-releases/aware-inc-reports-second-quarter-2019-financial-results-300893174.html
SOURCE Aware, Inc.