April 22, 2015 -
Biometrics software and service provider Aware, Inc. reported financial results for its first quarter ended March 31, 2015, which includes earned revenue of $4.1 million.
Revenue for the first quarter saw a 38% decline compared to the $6.6 million earned in the same quarter last year.
Additionally, the company’s net income for the quarter was $0.3 million ($0.01 per diluted share) compared to the $0.9 million ($0.04 per diluted share) earned in the same period a year ago.
Aware attributes the lower revenue and net income in the first quarter of this year compared to the same quarter last year to experiencing $2.6 million less in hardware revenue and, to a lesser degree, lower DSL royalties.
Meanwhile, the company’s revenue from software licenses, software maintenance and services increased 10% over the first quarter of last year.
“Over the past two quarters our financial results have been affected by lower revenue from a large government contract that has been winding down,” said Rick Moberg, Aware’s co-CEO and chief financial officer. “We have been working on replacing revenue from that contract with new sources of revenue from government and commercial customers.
“For example, approximately 23% of first quarter revenue was derived from two biometrics projects with commercial customers. These projects in particular and commercial biometrics markets in general represent potential areas of growth for us. It is too early to predict the longer term trajectory of these opportunities, but we are optimistic they may develop into meaningful sources of revenue.”
Previously reported, Aware, Inc. reported financial results for the fourth quarter of 2014, as well as for the year ended December 31, 2014.