Aware reports Q1 financial results, establishes stock repurchase plan
Aware, Inc. has issued the financial results for the first quarter ended March 31, 2016, which saw a 17% spike in revenue to $4.8 million over the same quarter last year.
The company’s operating income in the first quarter of 2016 was $0.9 million, compared to $0.4 million in the first quarter of 2015.
Aware attributes the increase in revenue and operating income primarily to licensing revenue from a 2015 medical imaging software sale.
Additionally, the company’s net income in the first quarter of 2016 was $0.6 million, compared to $0.3 million in the same period a year ago.
“While revenue and operating income increased in the first quarter, these results did not meet our expectations,” said Rick Moberg, co-CEO and CFO at Aware. “When we released earnings for the fourth quarter of 2015, I mentioned that our sales pipeline going into 2016 looked promising, but predicting when those opportunities might turn into revenue was difficult. Our pipeline remains strong at the end of the first quarter, but forecasting the timing of revenue continues to be a challenge. We continue to be optimistic about the future of our business.”
Aware also announced that its board of directors has approved a program authorizing the company to repurchase up to $10 million of its common stock by December 31, 2017.
The shares may be purchased at any time in the open market or through privately negotiated transactions at management’s discretion, based on market conditions and other factors.
As of April 25, 2016, Aware had 22,993,139 shares of common stock outstanding.
The repurchase plan does not obligate Aware to acquire a specific amount of common stock and it may be modified or suspended at any time at the company’s discretion.
Previously reported, Aware, Inc. reported its financial results for Q4 2015 and year ended December 31, 2015, in which it earned a revenue of $6.9 million during the quarter.
As of April 25, 2016, the Company had over $53 million of cash, cash equivalents and marketable securities.