October 25, 2012 -
Aware, Inc., a leading supplier of biometrics software and DSL service assurance products, reported financial results for its third quarter ended September 30, 2012.
Revenue for the third quarter of 2012 was US$5.3 million, a decrease of three percent compared to US$5.4 million in the same quarter last year. Operating income before gain on sale of patent assets in the third quarter of 2012 was US$1.4 million compared to US$1.6 million for the same period a year ago.
The firm completed two significant patent sales in the second and third quarters of 2012. In the second quarter, Aware completed a sale of patents for US$75 million on June 21, 2012. The net gain after transaction costs was US$71.2 million. In the third quarter, the firm completed a sale of patents for $16 million on September 21, 2012. The net gain after transaction costs was US$15.2 million.
Aware notes that the patent sales it completed would have no material impact on its biometrics, imaging or DSL service assurance product lines.
Rick Moberg, Aware’s co-chief executive officer and chief financial officer, said: “Third quarter results were driven by three important factors. That is, the sale of a large portion of our DSL patent portfolio, another strong quarter of revenue and profitability by our biometrics and imaging business, and the completion of the shutdown of our DSL service assurance hardware business.
He further added: “With respect to our patent monetization efforts, we would like shareholders to understand that the majority of the remaining patents in our patent portfolio after the recent patent sales relate to our biometrics and imaging and DSL service assurance software product lines. At the current time, we do not intend to pursue patent monetization alternatives for these patents, although that decision is subject to change.”
Aware’s net income for the third quarter of 2012 was US$10.3 million, or US$0.46 per diluted share. These results compared to net income of US$1.3 million, or US$0.06 per diluted share, for the same period a year ago. Net income in the third quarter of 2012 included a net gain of US$15.2 million from the sale of patent assets.