Aware shows improved revenue in 2018 year-end results
Aware has reported financial results for its fourth quarter and year ended December 31, 2018. Revenue for the fourth quarter of 2018 was $4.1 million, an increase compared to $3.1 million in the same quarter last year. Operating income in Q4 2018 was $0.3 million compared to an operating loss of $0.7 million in the fourth quarter of 2017. Net income in the fourth quarter of 2018 was $0.6 million, or $0.03 per diluted share, which compares to a net loss of $0.6 million, or $0.03 per diluted share, in the same period a year ago.
The biometrics software and services supplier notes that the increase in revenue and operating income in the current three month period compared to the corresponding period last year was primarily due to higher services sales, and to a lesser extent higher software maintenance sales and lower total costs and expenses. This was partially offset by lower patent related income from an unaffiliated third party this quarter.
Revenue for 2018 was $16.1 million compared to $15.5 million in 2017. Operating income for 2018 was $0.4 million compared to $1.1 million in 2017. According to the announcement, the increase in revenue was primarily due to higher services revenue related to the software license agreement we entered into in Q2 2018 and higher maintenance revenue. The increase in revenue was partially offset by lower software license sales and no royalty revenue in 2018. Lower operating income was primarily due to lower patent related income from an unaffiliated third party in 2018 that was partially offset by higher revenue in 2018 and lower total costs and expenses in 2018.
Net income for 2018 was $1.2 million, or $0.06 per diluted share, which compared to net income of $1.0 million, or $0.05 per diluted share in 2017.
“2018 was a year of improved revenue due to higher biometric software license, maintenance and services sales and a continuation of investments in product and business development to strengthen our position as a leading global supplier of biometrics software and solutions,” said Kevin Russell, Aware’s chief executive officer and president. “In 2018, we had a large license sale of our Knomi mobile biometric authentication solution to a large commercial customer as well as additional licenses to multiple other customers. We were also pleased about the selection to provide our BioSP software and services for the United Kingdom Government biometric matching platform. We also made enhancements to multiple product offerings including our face, voice and fingerprint solutions. As we look to the future, we continue to be encouraged by the interest in and the worldwide opportunities for our biometric solutions in the government, commercial and mobile markets.”
In September Aware’s Knomi framework was certified as compliant with FIDO UAF 1.1 specifications.