Aware, Inc. Reports Second Quarter 2008 Financial Results

BEDFORD, MASS. – July 24, 2008 – Aware, Inc., a leading supplier of broadband technology and biometrics software, today reported financial results for its second quarter ended June 30, 2008. 

Revenues for the second quarter of 2008 were $6.2 million, a decrease of 4% compared to $6.4 million in the same quarter last year.  For the six months ended June 30, 2008, revenues decreased 2% to $12.0 million, compared to $12.2 million in the same period a year ago.

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 second quarter of 2008 was $1.3 million, or $0.05 per diluted share, which included $0.4 million of stock-based compensation charges in accordance with the provisions of FAS 123(R). This compared to a GAAP net loss of $1.0 million, or $0.04 per diluted share, for the same period a year ago. GAAP net loss for the six months ended June 30, 2008 was $2.5 million, or $0.11 per share, compared to a net loss of $1.1 million, or $0.05 per share, for the same period a year ago.

The Non-GAAP net loss for the second quarter of 2008, excluding the effect of stock-based compensation, was $0.9 million, or $0.04 per diluted share.  For the six months ended June 30, 2008, the company had a non-GAAP net loss, excluding the effect of stock-based compensation, of $1.8 million, or $0.08 per share.

Michael Tzannes, Aware’s chief executive officer, said, “Biometrics revenues were at a record high, driven by strong software sales and continued growth in professional services.  Our presence as a software component provider for border control and secure credentialing applications has strengthened significantly over the past year.  Our DSL test and diagnostics hardware and software products have now been designed-in across numerous handheld and testhead supplier platforms.  In licensing, we are continuing with our plan to diversify into new opportunities, the most exciting of which is home networking in support of the ITU g.hn standard.”

Financial tables

Click here to read financial tables

Note:  Aware’s conference call will be broadcast live over the Internet today, July 24, 2008 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) 325-4776 and referencing the confirmation number 3829447.  A replay of the call will be archived on our website after the call.

About Aware
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(tm) 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