Exhibit 99.1
FOR IMMEDIATE RELEASE
AWARE, INC. REPORTS 2005 FOURTH QUARTER FINANCIAL RESULTS
BEDFORD, Mass., February 16, 2006 - Aware, Inc. (NASDAQ: AWRE), a worldwide
leader and innovator of broadband intellectual property, today reported
financial results for its fourth quarter ended December 31, 2005.
Revenues for the fourth quarter of 2005 were $3.7 million compared to $4.6
million for the same period last year. Net loss for the fourth quarter of 2005
was $1.2 million, or $0.05 per share, compared to a net profit of $0.4 million,
or $0.02 per share, for the year-ago period.
For the year ended December 31, 2005, revenues were $15.7 million compared to
$16.5 million for the same period last year. Net loss for the year ended
December 31, 2005 was $2.5 million or $0.11 per share, compared to a net loss of
$1.4 million, or $0.06 per share, for the year-ago period.
Michael Tzannes, chief executive officer, said: "We are pleased with the
progress we made in 2005 introducing new products and adding new customers in
DSL and biometrics. Our strategy has been to position the company to benefit
from growth in these industries and we are confident that we have done so. A
highlight for 2006 promises to be our participation in the upcoming Deutsche
Telekom 50Mbps VDSL2 deployment."
Tzannes added, "From the conclusion of today's conference call until Friday,
February 18 at 5:00 p.m., we invite stakeholders to submit questions via email
to INVESTORQUESTIONS@AWARE.COM. We will post questions and answers next week on
our website."
Note: Aware's conference call will be broadcast live over the Internet today,
February 16, 2006 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
9270640. A replay of the call will be archived on our website after the call.
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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 September 30, 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 YEAR ENDED
DECEMBER 31, DECEMBER 31,
------------------------------- -------------------------------
2005 2004 2005 2004
-------------- -------------- -------------- --------------
Revenue:
Product sales....................................... $1,268 $1,531 $5,431 $4,759
Contract revenue.................................... 1,658 1,950 6,719 7,575
Royalties........................................... 747 1,116 3,517 4,151
-------------- -------------- -------------- --------------
Total revenue..................................... 3,673 4,597 15,667 16,485
Costs and expenses:
Cost of product sales............................... 195 132 474 862
Cost of contract revenue............................ 886 687 3,270 2,683
Research and development............................ 2,770 2,328 10,170 10,013
Selling and marketing............................... 674 587 2,738 2,379
General and administrative.......................... 693 616 2,633 2,473
-------------- -------------- -------------- --------------
Total costs and expenses........................... 5,218 4,350 19,285 18,410
Net income (loss) from operations....................... (1,545) 247 (3,618) (1,925)
Interest income......................................... 352 177 1,150 558
-------------- -------------- -------------- --------------
Net income (loss) before provision for income taxes..... (1,193) 424 (2,468) (1,367)
Provision for income taxes.............................. - - - -
-------------- -------------- -------------- --------------
Net income (loss)....................................... ($1,193) $424 ($2,468) ($1,367)
============== ============== ============== ==============
Net income (loss) per share - basic..................... ($0.05) $0.02 ($0.11) ($0.06)
Net income (loss) per share - diluted .................. ($0.05) $0.02 ($0.11) ($0.06)
Weighted average shares - basic ........................ 23,220 22,838 23,076 22,785
Weighted average shares - diluted ...................... 23,220 23,624 23,076 22,785
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AWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
DECEMBER 31, DECEMBER 31,
2005 2004
-------------- --------------
ASSETS
Cash and investments..................................................... $36,763 $38,266
Accounts receivable, net................................................. 3,749 3,070
Property and equipment, net.............................................. 8,075 8,287
Other assets, net........................................................ 1,154 560
-------------- --------------
Total assets............................................................. $49,741 $50,183
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities................................................ $2,238 $1,427
Total stockholders' equity.............................................. 47,503 48,756
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Total liabilities and stockholders' equity............................... $49,741 $50,183
============== ==============
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