Exhibit 99.1
FOR IMMEDIATE RELEASE
AWARE, INC. REPORTS 2004 SECOND QUARTER FINANCIAL
RESULTS
BEDFORD, Mass., August 3, 2004 - Aware, Inc. (NASDAQ: AWRE), a worldwide leader
and innovator of broadband intellectual property, today reported financial
results for its second quarter ended June 30, 2004.
Revenues for the second quarter of 2004 were $3.7 million compared to $2.8
million for the same period last year. Net loss for the second quarter of 2004
was $0.8 million, or $0.04 per diluted share, compared to a net loss of $1.8
million, or $0.08 per diluted share, for the year-ago period.
For the six months ended June 30, 2004, revenues were $7.3 million compared to
$4.8 million in the same period last year. Net loss for the six months ended
June 30, 2004 was $2.0 million or $0.09 per diluted share, compared to a net
loss of $4.8 million, or $0.21 per diluted share, for the year-ago period.
Michael Tzannes, chief executive officer, said: "The drive to new ADSL2+
standards, based upon higher performance technology, continues to gain momentum.
This is driven in large part by the desire of phone companies to deliver video
services over next generation networks that utilize ADSL2+. Aware's StratiPHY
technology is a market leader in performance and interoperability, and positions
us to benefit as ADSL2 and ADSL2+ services deploy around the world."
Note: Aware's conference call will be broadcast live over the Internet today,
August 3, 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 (913) 981-5581 and referencing the confirmation number
613981. 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 Risk Factors in our quarterly report on Form 10-Q for the quarter ended
March 31, 2004 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 SIX MONTHS ENDED
JUNE 30, JUNE 30,
-------------- --------------- -------------- ---------------
2004 2003 2004 2003
-------------- --------------- -------------- ---------------
Revenue:
Product sales.................................... $1,028 $586 $2,251 $1,296
Contract revenue................................. 1,791 1,192 3,069 1,522
Royalties........................................ 906 1,039 2,007 1,946
-------------- --------------- -------------- ---------------
Total revenue.................................. 3,725 2,817 7,327 4,764
Costs and expenses:
Cost of product sales............................ 195 191 532 336
Cost of contract revenue......................... 653 287 1,320 550
Research and development......................... 2,503 3,104 5,174 6,552
Selling and marketing............................ 667 625 1,271 1,200
General and administrative....................... 630 611 1,223 1,259
-------------- --------------- -------------- ---------------
Total costs and expenses........................ 4,648 4,818 9,520 9,897
Loss from operations................................. (923) (2,001) (2,193) (5,133)
Interest income...................................... 115 157 238 326
-------------- --------------- -------------- ---------------
Loss before provision for income taxes............... (808) (1,844) (1,955) (4,807)
Provision for income taxes........................... - - - -
-------------- --------------- -------------- ---------------
Net loss............................................. ($808) ($1,844) ($1,955) ($4,807)
============== =============== ============== ===============
Net loss per share - basic and diluted .............. ($0.04) ($0.08) ($0.09) ($0.21)
Weighted average shares - basic and diluted ......... 22,766 22,705 22,759 22,701
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AWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
JUNE 30, DECEMBER 31,
2004 2003
---------------- ------------------
ASSETS
Cash and investments............................................ $38,599 $38,964
Accounts receivable, net........................................ 1,817 2,449
Property and equipment, net..................................... 8,521 8,921
Other assets, net............................................... 445 690
---------------- ------------------
Total assets.................................................... $49,382 $51,024
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LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities....................................... $1,602 $1,384
Total stockholders' equity..................................... 47,780 49,640
---------------- ------------------
Total liabilities and stockholders' equity...................... $49,382 $51,024
================ ==================
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