February 13, 2013 -
Aware Inc. has just reported its financial results for its fourth quarter and year ended December 31, 2012.
Revenue for the fourth quarter was $5.7 million, showing an increase of 9% compared to $5.2 million in the same quarter last year. Operating income before patent related income in the fourth quarter of 2012 was $1.7 million compared to $1.2 million in the fourth quarter a year earlier.
Net income for the fourth quarter was $6 million, which compares to net income of $1 million in the fourth quarter of 2011. The company notes that net income in the fourth quarter of 2012 included income from a patent arrangement of $1.1 million and an income tax benefit of $3.1 million.
The $1.1 million patent arrangement was entered into several years ago with a third party and Aware says that more income could come from this arrangement in the first quarter of 2013.
“We estimate that income could be in the range of $400,000 to $800,000 depending on a variety of factors,” the company said in a statement.
The company also notes that the improvement in operating income before patent related income compared to the fourth quarter of last year was primarily due to increased profitability in biometrics business and lower general and administrative expenses.
For the year ended December 31, revenue for the company reached $19.9 million, compared to $19.5 million the year before. Net income for the year ended December 31 2012, was $72.3 million, which compares to net income of $2.6 million in 2011.
“2012 was a profitable year for the Company. Our patent monetization activities unlocked the value of our patent assets we no longer needed for the business, as well as tax assets we had previously reserved. Successful patent transactions put us in a position to pay dividends of $2.95 per share, or $66 million in total in 2012, and still retain $73.1 million of cash and investments as of December 31, 2012,” Rick Moberg, Aware’s co-chief executive officer and chief financial officer said.
“We completed the shutdown of our DSL service assurance hardware business in 2012, which allows us to focus our business strategy on being a provider of software and services. Our biometrics business had a record year in terms of both revenue and profitability. Our DSL service assurance business made good progress in enhancing its Line Diagnostics Platform software product. We look forward to building on our core software operations and growing a profitable business in 2013 and beyond.”