July 24, 2015 -
Aware, Inc. reported financial results for its second quarter ended June 30, 2015, which includes earned revenue of $4.5 million — a decrease of 33% compared to $6.8 million in the second quarter of 2014.
The company’s net income was $0.3 million, which is a significant decrease compared to the $0.9 million it reported in the same period a year ago.
The company attributes the lower revenue and net income in the second quarter of this year compared to last year to earning $2.0 million less hardware revenue and lower services revenue from a large U.S. government services project that is nearing its end.
On the other hand, revenue from software licenses and software maintenance increased 10% over the second quarter of last year.
For the six months ended June 30, 2015, revenue decreased 36% to $8.6 million, compared to $13.4 million in the same period a year ago.
Net income for the six months ended June 30, 2015 was $0.6 million, or $0.03 per diluted share, which compared to net income of $1.7 million, or $0.08 per diluted share, in the same period a year ago.
Aware attributes its lower revenue and net income in the first half of 2015 compared to the same period last year to $4.7 million less hardware revenue, lower DSL royalties, and lower services revenue from the previously-mentioned U.S. government project.
Additionally, the company’s revenue from software licenses and software maintenance increased 8% over the six month period last year.
“Quarterly revenue and earnings fluctuate based on project wins and the timing of delivery of licenses and services for those projects,” said Rick Moberg, Aware’s co-CEO and chief financial officer. “Financial results this quarter are a reflection of these fluctuations.
“Moreover, we are moving through a transition in which we are working on lessening our dependence on government markets by moving into new commercial markets. Commercial biometrics markets represent a potential area of growth for us, but it is too early to predict whether we will be successful in these markets. We are optimistic they could develop into meaningful sources of revenue.”
Previously reported, Aware, Inc. reported financial results for its first quarter ended March 31, 2015, which includes earned revenue of $4.1 million.