Aware reports strongest quarter year-to-date
Biometrics software and services supplier Aware today reported financial results for its third quarter ended September 30, 2018. Revenue for the third quarter of 2018 was $5.4 million, a decrease of 5% compared to $5.7 million in the same quarter last year. Operating income in the third quarter of 2018 was $1.1 million compared to $1.5 million in the third quarter of 2017.
The decrease in revenue and operating income was primarily due to a large imaging software license sale in the third quarter of 2017 whereas there was no such sale in the current three month period, and no royalty revenue in the third quarter of 2018. The decrease in revenue was partially offset by a large biometrics software license sale and higher maintenance and services revenue. Lower patent related income and higher total costs and expenses also contributed to lower operating income.
Net income in the third quarter of 2018 was $1.3 million, or $0.06 per diluted share, which compares to net income of $1.1 million, or $0.05 per diluted share, in the same period a year ago.
Revenue for the first nine months of 2018 was $12.1 million, a decrease of 3% compared to $12.4 million in the same nine month period last year. Operating income for the first nine months of 2018 was $38,000 compared to operating income of $1.8 million in the same period last year.
Net income for the first nine months of 2018 was $0.6 million, or $0.03 per diluted share, which compares to net income of $1.6 million, or $0.07 per diluted share, in the same period a year ago.
“Our financial performance in the third quarter represented our strongest quarter year-to-date,” said Kevin Russell, Aware’s chief executive officer and president. “Revenue was lifted by a large license sale of our Knomi mobile biometric authentication solution to a large commercial customer as well as our continuing work under the United Kingdom Government biometric matching platform project.”
In September Aware’s Knomi framework was certified as compliant with FIDO UAF 1.1 specifications.