Spending declined from $5.8 million in the first quarter of 2011 to $4.7 million this quarter. The $1.1 million spending decrease was primarily the result of: i) lower hardware cost of goods sold on lower hardware sales; ii) lower expenses in our DSL service assurance engineering organization; and iii) lower CEO related expenses because our former CEO, who resigned on April 1, 2011, was replaced with existing members of senior management.
We had 74 full time employees at March 31, 2012, which was down from 77 heads at the end of last quarter.
Rick Moberg, Aware's co-chief executive officer and chief financial officer, said, "This was the third consecutive quarter that net income was approximately $1.0 million or more. Net income of $1.1 million this quarter was driven by a transition towards Aware becoming primarily a software company as well as lower expenses. Cash and investments grew by $1.7 million to $49.0 million."
As we previously disclosed, our board of directors has been considering strategic options with respect to the monetization of a significant portion of our patent portfolio. On April 27, 2012, we filed a Form 8-K with the Securities and Exchange Commission that reports we have entered into an agreement for a significant sale of patents. The sale is subject to customary closing conditions and any required regulatory approvals. We expect to be able to use our deferred tax assets to substantially or completely offset taxable income attributable to this transaction. We intend to continue to pursue patent monetization alternatives for certain other patents remaining in our patent portfolio. We are unable to predict the size or the timing of any future potential transactions involving such patents or whether such transactions will be completed.
We believe that the sale of these patents will have no material impact on our biometrics and imag
|SOURCE Aware, Inc.|
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