Exhibit 99.1
FOR IMMEDIATE RELEASE
AWARE, INC. REPORTS THIRD QUARTER 2003 FINANCIAL
RESULTS
BEDFORD, Mass., October 9, 2003 - Aware, Inc. (NASDAQ: AWRE), a worldwide leader
and innovator of broadband intellectual property, today reported financial
results for its third quarter ended September 30, 2003.
Revenues for the third quarter of 2003 were $3.1 million compared to $4.0
million for the same period last year. Net loss for the third quarter of 2003
was $1.7 million, or $0.08 per diluted share, compared to a net loss of $9.7
million, or $0.43 per diluted share, for the year-ago period.
For the nine months ended September 30, 2003, revenues were $7.8 million
compared to $11.5 million in the same period last year. Net loss for the nine
months ended September 30, 2003 was $6.6 million or $0.29 per diluted share,
compared to a net loss of $14.4 million, or $0.63 per diluted share, for the
year-ago period.
Net loss for the three and nine month periods ended September 30, 2002 included
a $7.1 million deferred tax asset write-off.
Michael Tzannes, chief executive officer, said: "ADSL subscribers have now
surpassed the 50 million mark, with more than 20 million new users added in the
last 12 months. New industry standards are now able to address service
providers' requirements for longer reach, higher speeds and lower operating
costs, opening the door for even faster growth ahead. Aware's intellectual
property offerings allow companies to fulfill the new ADSL2 and ADSL2+
requirements with rapid time-to-market, low risk solutions."
Note: Aware's conference call will be broadcast live over the Internet today,
October 9, 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 (719) 457-2637 and referencing the confirmation number
539683. A replay of the call will be archived on our website after the call.
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
June 30, 2003 and other reports and filings made with the Securities and
Exchange Commission.
Contact: Dave Martin
Aware, Inc.
781-276-4000
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AWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
----------------------------- -----------------------------
2003 2002 2003 2002
-------------- -------------- -------------- --------------
Revenue:
Product sales....................................... $1,431 $1,298 $2,727 $3,399
Contract revenue.................................... 691 1,926 2,213 6,177
Royalties........................................... 933 729 2,879 1,965
-------------- -------------- -------------- --------------
Total revenue..................................... 3,055 3,953 7,819 11,541
Costs and expenses:
Cost of product sales............................... 293 489 629 831
Cost of contract revenue............................ 447 1,352 998 4,344
Research and development............................ 2,962 3,378 9,513 9,915
Selling and marketing............................... 637 774 1,837 2,275
General and administrative.......................... 598 772 1,857 2,165
-------------- -------------- -------------- --------------
Total costs and expenses........................... 4,937 6,765 14,834 19,530
Loss from operations.................................... (1,882) (2,812) (7,015) (7,989)
Interest income......................................... 136 224 463 695
-------------- -------------- -------------- --------------
Loss before provision for income taxes.................. (1,746) (2,588) (6,552) (7,294)
Provision for income taxes.............................. - (7,093) - (7,093)
-------------- -------------- -------------- --------------
Net loss................................................ ($1,746) ($9,681) ($6,552) ($14,387)
============== ============== ============== ==============
Net loss per share - basic and diluted ................. ($0.08) ($0.43) ($0.29) ($0.63)
Weighted average shares - basic and diluted ............ 22,718 22,686 22,707 22,675
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AWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
2003 2002
---------------- ----------------
ASSETS
Cash and investments..................................................... $40,913 $47,118
Accounts receivable, net................................................. 1,239 1,258
Property and equipment, net.............................................. 9,192 10,038
Other assets, net........................................................ 1,013 823
---------------- ----------------
Total assets............................................................. $52,357 $59,237
================ ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $1,294 $1,659
Total stockholders' equity 51,063 57,578
---------------- ----------------
Total liabilities and stockholders' equity............................... $52,357 $59,237
================ ================
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