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Aware, Inc. Reports First Quarter 2009 Financial Results
Revenues for the first quarter of 2009 were
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 first quarter of 2009 was
The non-GAAP net loss for the first quarter of 2009, excluding the effect
of stock-based compensation, was
Michael Tzannes, Aware's chief executive officer, said, "We continued to experience slowdowns in our business as a result of the slowing economy during the first quarter. Our goal is to emerge from the current environment stronger and focused on growth in our target markets. We believe we will succeed by focusing on leading edge, innovative solutions to a large and diverse customer base in the biometrics and broadband markets."
Note: Aware's conference call will be broadcast live over the Internet
today,
About Aware
Aware is a leading technology and software supplier for the
telecommunications and biometrics 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 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®
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
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. General factors include, but are not limited to: our
quarterly results are unpredictable and may fluctuate significantly; our
business is subject to rapid technological change; we face intense competition
from a wide range of competitors; current economic conditions, including the
credit crisis affecting the financial markets; our intellectual property is
subject to limited protection; our ability to obtain or enforce patents could
be affected by new laws, regulations or rules; and our business may be
affected by government regulations. DSL factors include, but are not limited
to: our DSL licensing and DSL test and diagnostic businesses depend upon a
limited number of customers; there has been and may continue to be a cyclical
demand for DSL chipsets; the success of our DSL licensing and test and
diagnostics products businesses requires telephone companies to install DSL
service in volume; our test and diagnostic hardware and software products
could have quality problems; we depend on a single source contract
manufacturer for the manufacture of our DSL hardware products; and we are
dependent on single source suppliers for components in our DSL hardware
products. Biometric factors include, but are not limited to: market
acceptance of our biometric technologies and products; changes in contracting
practices of government or law enforcement agencies; the failure of the
biometrics market to experience continued growth; announcements or
introductions of new technologies or products by our competitors; failures or
problems in our biometric software products; delays in the adoption of new
industry biometric standards; growth of proprietary biometric systems which do
not conform to industry standards; our ability to sell services contracts in a
manner that is consistent with our business model; our ability to deliver
service contract milestones; and our dependence on third party contractors and
consultants to deliver certain services contract milestones. We refer you to
the documents Aware files from time to time with the
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
March 31,
2009 2008
Revenue:
Product sales $2,819 $3,924
Contract revenue 1,277 1,521
Royalties 477 431
Total revenue 4,573 5,876
Costs and expenses:
Cost of product sales (1) 513 824
Cost of contract revenue (1) 908 1,018
Research and development (1) 3,111 3,528
Selling and marketing (1) 1,081 969
General and administrative (1) 1,213 1,193
Total costs and expenses 6,826 7,532
Net loss from operations (2,253) (1,656)
Interest income 125 383
Net loss before provision for
income taxes (2,128) (1,273)
Provision for income taxes 3 9
Net loss ($2,131) ($1,282)
Net loss per share - basic ($0.09) ($0.05)
Net loss per share - diluted ($0.09) ($0.05)
Weighted average shares - basic 23,281,204 23,880,358
Weighted average shares - diluted 23,281,204 23,880,358
(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
March 31,
2009 2008
Cost of product sales $3 $3
Cost of contract revenue 32 34
Research and development 146 167
Sales and marketing 52 31
General and administrative 158 90
Total stock-based compensation costs $391 $325
AWARE, INC.
Non-GAAP Financial Measures and Reconciliation
(In thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
2009 2008
GAAP net loss ($2,131) ($1,282)
Stock-based compensation 391 325
Non-GAAP net loss ($1,740) ($957)
Three Months Ended
March 31,
2009 2008
GAAP diluted net loss per share ($0.09) ($0.05)
Stock-based compensation per share 0.02 0.01
Non-GAAP diluted net loss per share ($0.07) ($0.04)
AWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
March 31, December 31,
2009 2008
ASSETS
Cash and investments $42,513 $45,516
Accounts receivable, net 3,426 2,211
Inventories, net 1,558 1,656
Property and equipment, net 7,327 7,463
Other assets, net 977 700
Total assets $55,801 $57,546
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $2,688 $2,693
Long-term deferred revenue 330 330
Total stockholders' equity 52,783 54,523
Total liabilities and stockholders'
equity $55,801 $57,546
SOURCE
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