Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact:
Rob Weiskopf
Aware, Inc.
781-276-4000
AWARE, INC. REPORTS 2005 SECOND QUARTER
FINANCIAL RESULTS
BEDFORD, MASS. - AUGUST 4, 2005 - Aware, Inc. (NASDAQ: AWRE), a worldwide leader
and innovator of broadband intellectual property, today reported financial
results for its second quarter ended June 30, 2005.
Revenues for the second quarter of 2005 were $2.7 million compared to $3.7
million for the same period last year. Net loss for the second quarter of 2005
was $1.5 million, or $0.07 per share, compared to a net loss of $0.8 million, or
$0.04 per share, for the year-ago period.
For the six months ended June 30, 2005, revenues were $6.9 million compared to
$7.3 million in the same period last year. Net loss for the six months ended
June 30, 2005 was $1.8 million or $0.08 per share, compared to a net loss of
$2.0 million, or $0.09 per share, for the year-ago period.
Michael Tzannes, Aware's chief executive officer commented, "We are increasingly
confident that our StratiPHY(TM) product family combined with our business model
are a recipe for success. We invite you to listen to our conference call today,
where we will layout a detailed roadmap for our licensing business and the
reason for our optimism." Specifically, Aware will present:
o Changes underway in the ADSL industry and why they are positive
for Aware
o The economic challenges facing the DSL semiconductor industry
o The Aware solution and why and how Aware can succeed
o Reasons we are on the right track
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"We will also discuss progress in our test and diagnostics and biometrics and
medical imaging product and market development efforts."
Tzannes added, "From the conclusion of today's conference call until Monday,
August 8 at 5:00 p.m., we invite interested parties to submit investor questions
via email to INVESTORQUESTIONS@AWARE.COM. We will post questions and answers
later in the week on our website."
Note: Aware's conference call will be broadcast live over the Internet today,
August 4, 2005 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) 457-2629 and referencing the confirmation number
4164001. 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+, VDSL2, Bonded
ADSL2+, Dr. DSL(R), StratiPHY(TM), StratiPHY-Bonded(TM), StratiPHY2+(TM),
StratiPHY3(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 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 a small number of
customers, 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, 2005 and other reports and filings made
with the Securities and Exchange Commission.
DR. DSL, STRATIPHY, STRATIPHY2+, STRATIPHY3, AND STRATIPHY-BONDED ARE TRADEMARKS
OR REGISTERED TRADEMARKS OF AWARE, INC.
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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,
------------------------------- ------------------------------
2005 2004 2005 2004
-------------- -------------- -------------- --------------
Revenue:
Product sales....................................... $785 $1,028 $1,746 $2,251
Contract revenue.................................... 978 1,791 3,141 3,069
Royalties........................................... 920 906 2,020 2,007
-------------- -------------- -------------- --------------
Total revenue..................................... 2,683 3,725 6,907 7,327
Costs and expenses:
Cost of product sales............................... 62 195 122 532
Cost of contract revenue............................ 718 653 1,558 1,320
Research and development............................ 2,360 2,503 4,913 5,174
Selling and marketing............................... 710 667 1,343 1,271
General and administrative.......................... 627 630 1,296 1,223
-------------- -------------- -------------- --------------
Total costs and expenses........................... 4,477 4,648 9,232 9,520
Loss from operations.................................... (1,794) (923) (2,325) (2,193)
Interest income......................................... 272 115 489 238
-------------- -------------- -------------- --------------
Loss before provision for income taxes.................. ($1,522) (808) (1,836) (1,955)
Provision for income taxes.............................. - - - -
-------------- -------------- -------------- --------------
Net loss................................................ ($1,522) ($808) ($1,836) ($1,955)
============== ============== ============== ==============
Net loss per share - basic and diluted ................. ($0.07) ($0.04) ($0.08) ($0.09)
Weighted average shares - basic and diluted ............ 23,019 22,766 22,982 22,759
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AWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
JUNE 30, DECEMBER 31,
2005 2004
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ASSETS
Cash and investments................................. $38,748 $38,266
Accounts receivable, net............................. 1,926 3,070
Property and equipment, net.......................... 8,133 8,287
Other assets, net.................................... 638 560
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Total assets......................................... $49,445 $50,183
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LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities............................ $1,976 $1,427
Total stockholders' equity........................... 47,469 48,756
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Total liabilities and stockholders' equity........... $49,445 $50,183
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