Aware reports $5.9 M revenue in Q3 2017
Aware, Inc. reported financial results for Q3 2017, in which the company earned revenue of $5.9 million — the exact same revenue it reported for Q3 2016.
Meanwhile, operating income in Q3 2017 was $1.7 million compared to $2.3 million in Q3 2016. The company attributes this decline primarily to higher research and development expenses, as well as lower patent related income from an unaffiliated third party.
Net income in Q3 2017 was $1.2 million, compared to $1.6 million in the same period a year ago.
Revenue for the first nine months of 2017 was $13.0 million, a decrease of 26 percent compared to $17.6 million in the same nine-month period last year.
Operating income for the first nine months of 2017 was $2.3 million compared to $5.3 million in the same period last year.
The decrease in revenue and operating income were primarily due to a large biometrics software license sale to a U.S. government military customer in Q2 2016 whereas there was no sale of that size in the first nine months of 2017, higher imaging software revenue during the first nine months of 2016 from revenue amortization of a 2015 medical imaging software sale that was only partially offset by a large software license sale to a medical imaging customer in the first nine months of 2017, no hardware sales in the first nine months of 2017; and higher research and development expenses.
The resulting decline in operating income was partially offset by higher patent related income from an unaffiliated third party, lower cost of software licenses; and lower cost of hardware sales.
Net income for the first nine months of 2017 was $1.9 million, compared to $3.6 million in the same period a year ago.
“The financial performance of our business was stronger than in the second quarter,” Kevin Russell, CEO and president of Aware, said. “Revenue and operating income were lifted by a large license sale to a medical imaging customer as well as continued business from significant government customers. We continue to make investments in our commercial/mobile business as evidenced by the introduction last week of our Knomi mobile authentication framework.
“Knomi utilizes face, voice, and keystroke dynamics to enable multifactor biometric authentication from mobile phones. Our ongoing strategy is to serve as the high quality, expert technical provider of biometric software solutions and services into the government and commercial/mobile markets.”
Last week, Aware launched its Knomi mobile biometric authentication framework, which consists of SDKs that work together on a mobile device and server to replace passwords with multifactor authentication.