Kevin Russell, Aware's co-chief executive officer and general counsel, added, "In lieu of an earnings conference call this quarter, we have provided additional information regarding our financial results in the following paragraphs."
For the quarter, product revenue grew 9% from $4.7 million in the first quarter of 2010 to $5.1 million this quarter. The rise in product revenue reflects an increase in test and diagnostics hardware and software revenue that was partially offset by slightly lower biometrics software revenue. A major factor driving the product revenue increase was a sale of our LDP software to a European telephone company.
For the quarter, services revenue grew 296% from $209,000 in the first quarter of 2010 to $829,000 this quarter. The rise in services revenue was primarily due to increased revenue from the sale of biometrics services projects.
For the quarter, royalties declined 40% from $756,000 in the first quarter of 2010 to $452,000 this quarter. The decrease in royalties was due to lower royalties reported to us by our DSL chip licensees.
First quarter spending grew 3% from $5.6 million in the first quarter of 2010 to $5.8 million this quarter. The spending increase was primarily due to higher hardware cost of goods sold on higher hardware sales and higher biometrics engineering expenses to support the increase in biometrics services revenue. Spending increases on these items were partially offset by a decline in lower general and administrative expenses as a result of lower legal fees and director and officer compensation.
We had 84 full time employees at March 31, 2011, which is up one person from the end of 2010.
On September 24, 2010, Aware announced that it was considering a spin-off of its patent licensing operations. Aware is currently reviewing strategic options with res
|SOURCE Aware, Inc.|
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