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Aware, Inc. Reports First Quarter 2011 Financial Results
Date:4/26/2011

erty of their respective owners.AWARE, INC.CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share data)(unaudited)Three Months Ended March 31, 20112010Revenue:Product sales

$5,078$4,651Services

829209Royalties

451756Total revenue

6,3585,616Costs and expenses:Cost of product sales (1)

1,2201,036Cost of services (1)

35772Research and development (1)

1,9612,035Selling and marketing (1)

1,0511,066General and administrative (1)

1,1971,402Total costs and expenses

5,7865,611Income from operations

5725Interest income

2018Income before provision for income taxes

59223Provision for income taxes

21Net income  

$590$22Net income – basic

$0.03$0.00Net income – diluted  

$0.03$0.00Weighted average shares – basic

20,21919,913Weighted average shares – diluted

20,82819,923(1) The amounts in the tables above include stock-based compensation as follows (in thousands):Three Months Ended March 31,20112010Cost of product sales

$2$2Cost of services

96Research and development

67114Sales and marketing

2238General and administrative

203185Total stock-based compensation costs

$303$345AWARE, INC.NON-GAAP FINANCIAL MEASURES AND RECONCILIATION(In thousands, except per share data)(unaudited)Three Months Ended March 31,20112010GAAP net income  

$590$22Stock-based compensation

303345Non-GAAP net income  

$893$367Three Months Ended March 31,20112010GAAP diluted net income per share

$0.03$0.00Stock-based compensation per share

0.010.02Non-GAAP diluted net income per share

$0.04$0.02AWARE, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)(unaudited)March 31, 2011December 31, 2010ASSETSCash and investments

$40,015$39,949Accounts receivable, net

6,1204,968I
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SOURCE Aware, Inc.
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