Aware, Inc. issues Q4 and 2015 financial results
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.
This represents a 61% increase compared to $4.3 million the company reported for Q4 2014. Meanwhile, Aware’s operating income in Q4 2015 was $2.6 million compared to $0.2 million in the same period a year ago.
The company attributes this higher revenue and operating income in Q4 2015 compared to the same period a year ago, to securing two new biometrics software license sales for commercial applications, a medical imaging software license sale, and a $1.1 million hardware shipment that had been delayed from previous quarters.
Aware’s net income in Q4 2015 was $1.8 million, which is a significant increase when compared to the $0.2 million it reported in the same period a year ago.
For the year ended December 31, 2015, the company’s revenue decreased 17% to $19.6 million, compared to $23.7 million in 2014. Additionally, the company’s operating income for 2015 was $3.9 million compared to $7.1 million in 2014.
The $4.1 million decrease in revenue is the result of $5.8 million lower hardware and services revenue from two key U.S. government military customers. However, the lower sales from these customers were partially offset by $1.7 million of higher net revenue from other sources.
Aware’s total operating income decreased by $3.2 million in 2015 due to $1.1 million less operating income as a result of the $4.1 million revenue decline, and a $2.1 million decrease in patent related income.
The company’s net income for 2015 was $4.6 million, which matched its net income of $4.6 million in 2014.
“This was an excellent quarter for us because of the medical imaging sale and the addition of two new biometrics customers who purchased software for commercial applications,” said Rick Moberg, co-CEO and CFO of Aware. “Were it not for the $3.6 million revenue deferral on the medical imaging sale, Q4 revenue would have been more than $10.5 million. Our sales pipeline going into 2016 looks promising with a variety of opportunities. However, predicting when and if those opportunities might turn into revenue is difficult.
“The trends we are seeing in the biometrics markets include a number of foreign government opportunities, emerging commercial opportunities, and uneven US government demand. All in all, we are optimistic about the opportunities in the market and our position, including our product portfolio and ability to deliver services.”