Exhibit 99.1
FOR IMMEDIATE RELEASE
AWARE, INC. REPORTS 2004 FIRST QUARTER
FINANCIAL RESULTS
BEDFORD, Mass., May 6, 2004 - Aware, Inc. (NASDAQ: AWRE), a worldwide leader and
innovator of broadband intellectual property, today reported financial results
for its first quarter ended March 31, 2004.
Revenues for the first quarter of 2004 were $3.6 million compared to $1.9
million for the same period last year. Net loss for the first quarter of 2004
was $1.1 million, or $0.05 per diluted share, compared to a net loss of $3.0
million, or $0.13 per diluted share, for the year-ago period.
Michael Tzannes, chief executive officer, said: "We continue to see strong
demand for ADSL2 and ADSL2plus and believe that the transition to these new
standards will have a positive effect on Aware. In addition, a maturing VDSL
market is presenting new and exciting opportunities for Aware. Also, our product
offerings in Dr. DSL test and diagnostics as well as in biometrics software have
continued to show promise and we expect we will benefit from growth in those
industries."
He concluded: "We remain confident that Aware is positioned to benefit as the
markets we are addressing develop further."
Note: Aware's conference call will be broadcast live over the Internet today,
May 6, 2004 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) 457-2680 and referencing the confirmation number
266448. A replay of the call will be archived on our website after the call.
ABOUT AWARE
Aware, Inc. designs, develops, licenses and markets DSL technologies that enable
broadband communications over existing telephone networks. Its solutions,
including splitterless G.lite, full-rate ADSL, ADSL2, ADSL2+, Dr. DSL(R),
StratiPHY2+(TM), and G.SHDSL, address central office as well as customer premise
requirements. Aware is also a leading provider of standards-based biometric
transaction and image compression software toolkits. 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 Factors That May Affect Future Results in our Annual Report on Form 10-K
for the year ended December 31, 2003 and other reports and filings made with the
Securities and Exchange Commission.
Contact: Rob Weiskopf
Aware, Inc.
781-276-4000
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AWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED
MARCH 31,
----------------------------------
2004 2003
---------------- ----------------
Revenue:
Product sales...................................... $1,223 $710
Contract revenue................................... 1,278 330
Royalties.......................................... 1,101 907
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Total revenue 3,602 1,947
Costs and expenses:
Cost of product sales.............................. 337 145
Cost of contract revenue........................... 667 263
Research and development........................... 2,671 3,448
Selling and marketing.............................. 604 575
General and administrative......................... 593 648
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Total costs and expenses 4,872 5,079
Loss from operations................................... (1,270) (3,132)
Interest income........................................ 123 169
---------------- ----------------
Loss before provision for income taxes................. (1,147) (2,963)
Provision for income taxes............................. - -
---------------- ----------------
Net loss............................................... ($1,147) ($2,963)
================ ================
Net loss per share - basic and diluted ................ ($0.05) ($0.13)
Weighted average shares - basic and diluted............ 22,751 22,698
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AWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
MARCH 31, DECEMBER 31,
2004 2003
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ASSETS
Cash and investments....................................... $38,805 $38,964
Accounts receivable, net................................... 2,155 2,449
Property and equipment, net................................ 8,686 8,921
Other assets, net.......................................... 735 690
---------------- ------------------
Total assets............................................... $50,381 $51,024
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LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities.................................. $1,873 $1,384
Total stockholders' equity................................. 48,508 49,640
---------------- ------------------
Total liabilities and stockholders' equity................. $50,381 $51,024
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