BEDFORD, Mass. - May 3, 2007 – Aware, Inc. (NASDAQ: AWRE), a leading supplier of broadband technology and biometrics software, today reported financial results for its first quarter ended March 31, 2007.
Revenues for the first quarter of 2007 were $5.8 million, compared to $6.1 million in the same quarter last year.
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 first quarter of 2007 was $0.1 million, or $0.00 per share, which included $0.2 million of stock-based compensation charges in accordance with the provisions of FAS 123(R). This compared to GAAP net income of $0.5 million, or $0.02 per share, for the same period a year ago.
Non-GAAP net income for the first quarter of 2007, excluding the effect of stock-based compensation, was $0.1 million, or $0.01 per diluted share.
Michael Tzannes, Aware’s chief executive officer, said, “We are pleased with our progress in each of the markets we are addressing. Our outlook for the future is very positive. The rollout of ADSL2+ and VDSL2 networks is driving demand for our DSL licensing and our DSL test and diagnostics products. Interest in secure credentialing at government agencies is increasing demand for our biometrics software products. Encouraging highlights from this quarter include:
- Sales of DSL test and diagnostics products were up this quarter as our products gain traction in the service assurance market. In addition, one of our OEM customers announced a significant deployment win for service assurance solutions that utilize our products.
- In biometrics, sales of both our traditional products as well as our new server-based products were strong this quarter. During Q1, a large government agency successfully deployed our products in a PIV-compliant secure credentialing system.”
Note: Aware’s conference call will be broadcast live over the Internet today, May 3, 2007 at 5:00 p.m. Eastern Time. To listen to the call, please go to www.aware.com/ir. The conference call may also be heard by calling (719) 457-2649 and referencing the confirmation number 5029784. A replay of the call will be archived on our website after the call.
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™ 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 Bedford, Massachusetts. www.aware.com