October 29, 2013 -
Aware has just reported its financial results for the third quarter, ending September 30, 2013.
According to the company, revenue for the third quarter of 2013 was $4.5 million, a decrease of 15% compared to $5.3 million in the same quarter last year. The net loss for the third quarter of 2013 was $1.2 million, which compares to net income of $10.3 million for the same period a year ago. Net income in the third quarter of 2012 included a gain on the sale of patent assets of $15.2 million. Operating income before patent related income in the third quarter of 2013 was a loss of $2.2 million compared to income of $1.4 million in the third quarter of 2012.
For the nine months ended September 30, 2013, revenue increased 5% to $14.9 million, compared to $14.2 million in the same period a year ago. Net income for the nine months ended September 30, 2013 was $1.0 million. These results compared to net income of $66.3 million for the same period a year ago. Year-to-date net income in 2012 included an $86.4 million gain on the sale of patent assets and operating income before patent related income for the first nine months of 2013 was $134,000 compared to $2.6 million for the same period a year ago.
“While shutting down the DSL service assurance business was not an easy decision, we believe this action was in the best interests of the Company and its shareholders,” Rick Moberg, Aware’s co-chief executive officer and chief financial officer said. “We are excited to move forward focused on growing our profitable biometrics business.”
The company is also specific to point out that financial results for the three and nine month periods ended September 30, 2013 were affected by Aware’s decision to shut down its DSL assurance business. “This decision limited our ability to record revenue from our DSL service assurance business in the quarter. We also incurred $2.8 million of costs to shutdown the business. Notwithstanding the impact on the quarter and year-to-date periods, we believe this action was necessary in light of the lack of historical profitability and the future outlook for this business,” the company said in a statement.
“Our biometrics business was and is unaffected by this decision and continues to perform well. We encourage you to read our third quarter Form 10-Q for more details on the financial performance of our company.”