February 8, 2017 -
Aware has reported financial results for Q4 2016 and year-end 2016, which saw aa Q4 2016 revenue of $3.9 million compared to $6.9 million in the same quarter last year.
The company’s operating income in Q4 2016 was $0.6 million compared to $2.6 million in Q4 2015.
Meanwhile, net income in Q4 2016 was $0.5 million compared to $1.8 million in the same period a year ago.
Aware attributes the decline in revenue and operating income in the current three month period compared to the corresponding period last year to the particularly strong revenue quarter in the prior year period.
In addition, the drop in operating income was partially offset by $0.6 million of patent related income from an unaffiliated third party in the current period.
For the year end 2016 financial results, revenue was $21.6 million compared to $19.6 million in 2015, while the operating income was $5.9 million compared to $3.9 million in 2015.
The company attributes the increase in revenue and operating income in 2016 compared to 2015 to higher license revenue for biometrics and imaging software products.
Higher biometrics product license sales were driven primarily by three large sales to the United States Marine Corps, the United States Navy, and a systems integrator for a U.S. government end user customer.
Operating income in 2016 also included $0.8 million of patent related income from an unaffiliated third party with whom Aware has a patent arrangement.
Net income for the year end 2016 was $4.1 million compared to its net income of $4.6 million in 2015.
Aware announced in April 2016 its stock repurchase plan to purchase up to $10 million of its common stock, in which it repurchased 263,379 shares for $1.5 million during Q4 2016.
Since the program began in April 2016, Aware has repurchased 690,801 shares for $3.7 million. The company’s cash and investments were $52.9 million as of December 31, 2016.
“2016 was a year of strong financial performance for the company,” Rick Moberg, co-CEO and CFO of Aware said. “The business generated about $4.5 million of cash of which we used $3.7 million to repurchase stock. Looking forward, we are focused on growing the government, commercial, and mobile parts of our business.”
Previously reported, Aware has provided its WebEnroll, BioComponents, and BioSP products as part of a new system to the United States Department of Defense (DoD) to screen applicants for employment.