Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

Contact:

Kevin Russell

Aware, Inc.
781-276-4000

 

Aware, Inc. Reports First Quarter 2019

Financial Results



BEDFORD, MASS. – April 30, 2019 – Aware, Inc. (NASDAQ: AWRE), a leading supplier of biometrics software and services, today reported financial results for its first quarter ended March 31, 2019.

 

Revenue for the first quarter of 2019 was $3.7 million compared to $2.9 million in the same quarter last year. Operating loss in the first quarter of 2019 was $44,000 compared to an operating loss of $723,000 in the first quarter of 2018.

 

The increase in revenue and operating income in the current three month period compared to the corresponding period last year was primarily due to: i) higher services revenue, ii) higher biometrics software license sales, and iii) income from a patent arrangement from an unaffiliated third party. This was partially offset by: i) lower imaging software license sales; and ii) higher total costs and expenses.

 

Net income in the first quarter of 2019 was $228,000, or $0.01 per diluted share, which compares to a net loss of $495,000, or $0.02 per diluted share, in the same period a year ago.

 

Kevin Russell, Aware’s chief executive officer and president, said “Revenue for the first quarter was an improvement over the same quarter last year. Our revenue was higher primarily due to more services revenue from contracts that we recently won. We are optimistic about our prospects in 2019, but we are unable to predict when opportunities will result in revenue. We are pleased with the high level of interest and activity being generated by our Knomi™ mobile biometric authentication solution in the enterprise and mobile markets.”

 

 

Aware, Inc. • 40 Middlesex Turnpike • Bedford, MA USA 01730-1432

Tel: (781) 276-4000 • Fax: (781) 276-4001 • E-mail: IR@aware.com

Aware, Inc. Reports First Quarter 2019 Financial ResultsPage 2

 

 

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. Reports First Quarter 2019 Financial ResultsPage 3

AWARE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(unaudited)

 

 

   Three Months Ended
March 31,
 
   2019   2018 
Revenue:          
    Software licenses   $1,537   $1,473 
    Software maintenance    1,355    1,294 
    Services    840    144 
         Total revenue    3,732    2,911 
           
Costs and expenses:          
    Cost of services    518    50 
    Research and development    1,760    1,875 
    Selling and marketing    826    924 
    General and administrative    721    785 
       Total costs and expenses    3,825    3,634 
           
Patent related income    49    - 
           
Operating loss    (44)   (723)
Interest income    275    162 
Income (loss) before provision for (benefit from) income taxes    231    (561)
Provision for (benefit from) income taxes    3    (66)
Net income (loss)   $228   ($495)
           
           
Net income (loss) per share – basic   $0.01   ($0.02)
Net income (loss) per share – diluted   $0.01   ($0.02)
           
           
Weighted-average shares – basic    21,565    21,547 
Weighted-average shares - diluted    21,582    21,573 

 

Aware, Inc. Reports First Quarter 2019 Financial ResultsPage 4

 

AWARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(unaudited)

  

  

March 31,

2019

  

December 31,

2018

 
 ASSETS          
     Cash and investments   $50,414   $51,612 
     Accounts and unbilled receivables, net    5,829    5,289 
     Property and equipment, net    3.995    4,085 
     Deferred tax assets    5,180    5,171 
     All other assets, net    508    284 
           
     Total assets   $65,926   $66,441 
           

LIABILITIES AND STOCKHOLDERS’ EQUITY

          
     Accounts payable and accrued expenses   $1,398   $1,445 
     Deferred revenue    2,516    3,099 
     Total stockholders’ equity    62,012    61,897 
           
     Total liabilities and stockholders’ equity   $65,926   $66,441 

 

 

 

###

 

 

 

Aware, Inc. • 40 Middlesex Turnpike • Bedford, MA USA 01730-1432

Tel: (781) 276-4000 • Fax: (781) 276-4001 • E-mail: IR@aware.com

 

 

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