Aware Q2 results disappoint on lower biometric software and services revenue
Aware has reported a significant downturn in revenue and increase in operating loss in the second quarter of fiscal 2019, on lower sales of its biometric and imaging software licenses and lower services revenue.
Revenue for Q2 2019 was $3 million, down from $3.8 million a year earlier, and operating loss increased from $0.4 million in Q2 2018 to $1.2 million. The decreases in sales were partially offset by lower total costs and expenses, according to the announcement. Net loss was reported at $0.9 million, or $0.04 per diluted share, compared to a net loss of $0.2 million, or $0.01 per diluted share in the same quarter last year.
For the first six months of the year, however, the picture is significantly different, with revenues of $6.74 million slightly surpassing the $6.67 million in revenue reported by Aware for the first half of fiscal 2018. Operating loss, likewise, was up only slightly from $1.1 million to $1.2 million. The company’s services revenue was higher in the first half of 2019, and imaging software license sales were lower. Net loss in the first half of 2019 was $0.7 million, or $0.03 per diluted share, the same as the first half of the previous year.
“Our revenue results for the second quarter did not meet our expectations,” admits Aware CEO and President Kevin Russell. “Our quarterly revenue and earnings fluctuate based on the timing of the delivery of licenses and services for projects. Financial results this quarter reflect these fluctuations. We continue to make investments in product and business development with respect to enhancing our biometric solutions in the government, commercial and mobile markets and are encouraged by the level of interest in our product offerings and, in particular, Knomi, our mobile biometric authentication framework solution.”