Net loss in the fourth quarter of 2020 totaled $1.6 million, or $(0.08) per diluted share, which compares to net loss of $1.8 million, or $(0.08) per diluted share, in the third quarter of 2020 and net loss of $7.5 million, or $(0.35) per diluted share, in the fourth quarter of 2019.
Cash and cash equivalents totaled $38.6 million as of December 31, 2020, compared to $47.7 million as of December 31, 2019.
Full Year 2020 Financial Results
Revenue for the full year ended December 31, 2020 was $11.3 million, compared to $12.2 million for the year ended December 31, 2019. The decrease in revenue was primarily due to lower services revenue related to a multiyear international project signed with a systems integrator in the second quarter of 2018, partially offset by higher software subscription revenue.
Operating loss for the full year ended December 31, 2020 was $9.4 million, compared to operating loss of $4.2 million for the year ended December 31, 2019. The higher operating loss was primarily due to lower revenue as well as higher operating costs, including the aforementioned investments in sales and engineering resources as well as non-recurring expenses in the first half of 2020. During the first six months of 2020, the company incurred approximately $1.2 million of expenses, including $0.8 million of recruiting fees and severance payments, and more than $0.2 million in COVID-19 related charges, including remote working costs and bad debt from disrupted businesses.
Net loss for the full year ended December 31, 2020 totaled $7.6 million, or $(0.35) per diluted share, compared to a net loss of $8.3 million or $(0.39) per diluted share, in the same year-ago period.
Management Commentary
“2020 marked a period of continued transformation for our company as we strengthen our position as a market leader in mobile biometrics and middleware despite the unprecedented challenges associated with the ongoing COVID-19 pandemic,” said Bob Eckel, Aware’s Chief Executive Officer. “Operationally, we made significant progress executing our multi-pronged growth strategy by streamlining our offerings and readying them to align with subscription and consumption-based models, expanding strategic partnerships with industry leaders across multiple verticals, and reinvigorating the commercial side of the business. As a result, we’ve nearly doubled the pipeline, quintupled high-margin recurring subscription revenue, and have completed Aware’s first acquisition.
“In the face of an uncertain economic environment as well as a major transition in how work is being conducted, we took prudent and decisive steps to promote the health and safety of our employees while ensuring the long-term viability of our business by implementing appropriate cost-containment measures for the year to come. Although the long-term economic impact of these times remains unclear at best, we have a resilient and promising business model that will allow us to continue to operate and scale effectively now and in the future. Financially, we generated our second consecutive quarter of significant revenue growth, highlighted by a 40% increase in revenue compared to the same year-ago period. Our strategic business model transformation towards recurring subscription revenues accompanied by a newly scaled operating infrastructure, position Aware for a promising and bright future. As we capitalize on prominent growth catalysts in 2021, we are also evaluating accretive opportunities and partnerships that provide us with greater market access, scale and an expanded customer base.”
Conference Call
Aware management will hold a webcast today (February 9, 2021) at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss these results.
Company CEO Bob Eckel and CFO David Barcelo will host the webcast, followed by a question-and-answer period.
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| Aware, Inc. | www.aware.com | 1.781.276.4000 | | © 2020 Aware, Inc. |
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