FOR IMMEDIATE RELEASE
AWARE, INC. REPORTS FIRST QUARTER 2003 FINANCIAL RESULTS
BEDFORD, Mass., May 1, 2003 - Aware, Inc. (NASDAQ: AWRE), a worldwide leader and
innovator of broadband intellectual property, today reported financial results
for its first quarter ended March 31, 2003.
Revenues for the first quarter of 2003 were $1.9 million compared with $3.6
million for the same period last year. Net loss for the first quarter of 2003
was $3.0 million, or ($0.13) per diluted share, compared with a net loss of $2.6
million, or ($0.11) per diluted share, for the year-ago period.
Michael Tzannes, chief executive officer, said: "Today, roughly 3.5% of the
world's one billion phone lines are served with ADSL. We are beginning to see
signs of improvement driven by the steady growth of ADSL subscribers around the
world. We remain optimistic that this will allow us to return to the growth and
profitability targets we had set prior to the prolonged downturn we are
experiencing."
Note: Aware's conference call will be broadcast live over the Internet today,
May 1, 2003 at 5:00 p.m. Eastern Time. To listen to the call, please go to
WWW.AWARE.COM, and click on "Investor Relations."
ABOUT AWARE
Aware, Inc. designs, develops, licenses and markets DSL technology that enables
broadband communications over existing telephone networks. Its solutions,
including splitterless G.lite, full-rate ADSL, ADSL2, ADSL2+, VeDSL(TM), Dr.
DSL(R), XRDSL(TM), StratiPHY(TM), FastADSL(TM), BondedADSL(TM), and G.shdsl
address central office as well as consumer electronics requirements. More
information about Aware can be found at http://www.aware.com.
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 market.
Aware wishes to caution you that there are factors that could cause actual
results to differ materially from the results indicated by such statements.
These factors include, but are not limited to: we have a unique business model,
our quarterly results are difficult to predict, we depend on a limited number of
licensees, we derive a significant amount of revenue from one customer, we
depend on equipment companies to incorporate our technology into their products,
we face intense competition from other DSL vendors, DSL technology competes with
other technologies for broadband access, and our business is subject to rapid
technological change. We refer you to the documents Aware files from time to
time with the Securities and Exchange Commission, specifically the section
titled Factors That May Affect Future Results in our Annual Report on Form 10-K
for the year ended December 31, 2002 and other reports and filings made with the
Securities and Exchange Commission.
Contact: Rick Moberg
Aware, Inc.
781-687-0500
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AWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED
MARCH 31,
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2003 2002
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Revenue:
Product sales................................................. $710 $1,007
Contract revenue.............................................. 330 2,093
Royalties..................................................... 907 476
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Total revenue 1,947 3,576
Costs and expenses:
Cost of product sales......................................... 145 166
Cost of contract revenue...................................... 263 1,465
Research and development...................................... 3,448 3,365
Selling and marketing......................................... 575 683
General and administrative.................................... 648 712
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Total costs and expenses 5,079 6,391
Loss from operations.............................................. (3,132) (2,815)
Interest income................................................... 169 239
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Loss before provision for income taxes............................ (2,963) (2,576)
Provision for income taxes........................................ - -
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Net loss.......................................................... ($2,963) ($2,576)
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Net loss per share - basic and diluted............................ ($0.13) ($0.11)
Weighted average shares - basic and diluted....................... 22,698 22,664
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AWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
MARCH 31, DECEMBER 31,
2003 2002
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ASSETS
Cash and investments..................................................... $43,733 $47,118
Accounts receivable, net................................................. 1,669 1,258
Property and equipment, net.............................................. 9,748 10,038
Other assets, net........................................................ 906 823
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Total assets............................................................. $56,056 $59,237
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LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities................................................ $1,441 $1,659
Total stockholders' equity.............................................. 54,615 57,578
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Total liabilities and stockholders' equity............................... $56,056 $59,237
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