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Aware Inc. reports Q2 2012 financial results


Aware, Inc. reported its second quarter financial results, with a net income of $54.9 million or $2.49 per diluted share. This gain was driven by sale of patent assets for $75 million, which after transaction costs, the net gain was $71.2 million.

Aware Inc. is a leader in biometrics software, DSL service assurance products and healthcare industries.

Looking at its first semester performance, Aware Inc., gained a net income of $56 million or $2.60 per diluted share.

Kevin Russell, Aware’s co-chief executive officer and general counsel, said, “We are pleased to report that this is our fourth consecutive profitable quarter on an operating and net income basis. Net income of $54.9 million this quarter was driven by our closing a significant sale of patent assets for $75 million. We also continue to be encouraged by growth opportunities in our operating businesses.”

In terms of income from operations, Aware posted for the second an income of $369,000 compared to a loss of $283,000 for the same period last year.

For the first six months, the income is recorded at $1.4 million compared to $269,000 for the same semester last year.

Aware will still pursue patent monetization alternatives for other remaining patents. However, the company cannot predict the size or timing of any future patent transactions or whether such transaction will be completed.

Other performances for the second quarter were:

The company revenues posted $5.3 million in the second quarter, which is a decrease of 10% or $5.9 million revenue in the same quarter last year. For the first six months, revenue decreased 10% or $11.1 million compared to $12.3 million in the same period a year ago.

Services revenue decreased from $1.4 million in the second quarter 2011 to $624,000 this quarter because of lower revenue from the sale of biometrics engineering services. Royalties, however, increased to $624,000 for the second quarter 2012 compared to $541,000 for second quarter 2011 due to higher royalties reported by DSL chip licensees.

Even with the 77 full time employees, which was the same as December, the spending declined by $1.2 million this quarter or total of $5.0 million compared to spending of $6.2 million second quarter last year. The decrease in spending could be attributed to lower hardware cost of goods sold on lower hardware sales; lower expenses in our DSL service assurance engineering organization, and; lower CEO related expenses because our former CEO, who resigned on April 1, 2011, was replaced with existing members of senior management.

How do you think Aware will play out future patents?

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