Financial losses for Aware leavened with large police biometrics contract

This year has not been kind to adaptive authentication software firm Aware. It is bringing in new revenue, but, overall, its fundamentals, like those of many biometrics companies, are sliding.

Executives maintain that their guidance for the year, which calls for 15 percent growth in total and annual recurring revenue. And they continue to say Aware will post neutral operating cashflow by yearend.

Aware reported a net loss of $2.7 million, or $0.13 per basic and diluted share, on revenue of $3.2 million for the second quarter, ended June 30. This compares to a net loss of $1.3 million, $0.06, on revenue $4.2 million for the same period a year ago for the biometrics firm.

The first half of fiscal 2023 was no cheerier. The company reported a net loss $4.2 million, $0.20 per share, on revenue of $7.5 million in the first half of fiscal 2023. This compares with a net loss of $2.6 million, $0.12, on revenue of $8.9 million.

The company is keeping an eye on spending. Total costs and expense for the second quarter 2023 was $6.1 million, a smidge more than the $5.6 million a reported a year ago.

Expenses for the second half moved even less than a smidge. They totaled $12.2 million in the new report compared to $11.6 million for the first half last year.

Company executives are boasting a new contract (the size of which has not been made public) with a forensic science facility in the U.S. state of Ohio.

The forensics lab, which serves 70 police agencies, is peopled by the Miami Valley Regional Crime Lab and the Montgomery County coroner’s office.

It is going to use Aware’s cloud-based automated biometric ID system.

The expectation is that the ABIS will help police officers solve cases faster. It accommodates, finger, face and iris scans for what the company describes as large-scale biometric identification. The software also handles up to 30 million identities.

The company claims its software is helping to solve crimes in 26 U.S. states.

Article Topics

Aware  |  biometrics  |  digital identity  |  financial results  |  stocks