EXHIBIT 99.1
FOR IMMEDIATE RELEASE
AWARE, INC. REPORTS SECOND QUARTER 2003 FINANCIAL RESULTS
BEDFORD, Mass., July 31, 2003 - Aware, Inc. (NASDAQ: AWRE), a worldwide leader
and innovator of broadband intellectual property, today reported financial
results for its second quarter ended June 30, 2003.
Revenues for the second quarter of 2003 were $2.8 million compared to $4.0
million for the same period last year. Net loss for the second quarter of 2003
was $1.8 million, or $0.08 per diluted share, compared to a net loss of $2.1
million, or $0.09 per diluted share, for the year-ago period.
For the six months ended June 30, 2003, revenues were $4.8 million compared to
$7.6 million in the same period last year. Net loss for the six months ended
June 30, 2003 was $4.8 million or $0.21 per diluted share, compared to a net
loss of $4.7 million, or $0.21 per diluted share, for the year-ago period.
Michael Tzannes, chief executive officer, said: "ADSL continues to expand its
footprint around the world. We estimate that there have been about 10 million
new subscribers added this year bringing the total to approximately 46 million.
In addition, the new ADSL2 and ADSL2+ standards, which improve reach, features
and data rates, are gaining momentum. We are an industry leader in solutions
that implement these standards and while we saw only modest improvements in our
business this quarter, we remain optimistic about the future."
Note: Aware's conference call will be broadcast live over the Internet today,
July 31, 2003 at 5:00 p.m. Eastern Time. To listen to the call, please go to
WWW.AWARE.COM, and click on "Investor Relations." The conference call may also
be heard by calling (913) 981-5532. A recording of the call will be available
starting at 8:00 p.m. Eastern Time. To access the recording, please call (719)
457-0820. For both calls, please reference the confirmation number: 674689. The
webcast and replay recording will be archived on our website.
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+, Dr. DSL(R),
StratiPHY(TM), StratiPHY2+(TM), BondedADSL(TM), and G.SHDSL address central
office as well as customer premise requirements. More information about Aware
can be found at http://www.aware.com.
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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 Risk Factors in our quarterly report on Form 10-Q for the quarter ended
March 31, 2003 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 SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------------------- ------------------------------
2003 2002 2003 2002
--------------- --------------- --------------- --------------
Revenue:
Product sales....................................... $586 $1,095 $1,296 $2,102
Contract revenue.................................... 1,192 2,158 1,522 4,251
Royalties........................................... 1,039 759 1,946 1,235
--------------- --------------- --------------- --------------
Total revenue..................................... 2,817 4,012 4,764 7,588
Costs and expenses:
Cost of product sales............................... 191 176 336 342
Cost of contract revenue............................ 287 1,527 550 2,992
Research and development............................ 3,104 3,172 6,552 6,537
Selling and marketing............................... 625 818 1,200 1,501
General and administrative.......................... 611 681 1,259 1,393
--------------- --------------- --------------- --------------
Total costs and expenses........................... 4,818 6,374 9,897 12,765
Loss from operations.................................... (2,001) (2,362) (5,133) (5,177)
Interest income......................................... 157 232 326 471
--------------- --------------- --------------- --------------
Loss before provision for income taxes.................. (1,844) (2,130) (4,807) (4,706)
Provision for income taxes.............................. -
--------------- --------------- --------------- --------------
Net loss................................................ ($1,844) ($2,130) ($4,807) ($4,706)
=============== =============== =============== ==============
Net loss per share - basic and diluted ................. ($0.08) ($0.09) ($0.21) ($0.21)
Weighted average shares - basic and diluted ............ 22,705 22,673 22,701 22,669
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AWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
JUNE 30, DECEMBER 31,
2003 2002
---------------- ------------------
ASSETS
Cash and investments..................................................... $43,093 $47,118
Accounts receivable, net................................................. 871 1,258
Property and equipment, net.............................................. 9,437 10,038
Other assets, net........................................................ 895 823
---------------- ------------------
Total assets............................................................. $54,296 $59,237
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LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities................................................ $1,488 $1,659
Total stockholders' equity.............................................. 52,808 57,578
---------------- ------------------
Total liabilities and stockholders' equity............................... $54,296 $59,237
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