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Aware, Inc. Reports Fourth Quarter and 2008 Financial Results
Date:2/21/2009

Contract revenue 9,346 1,077 14,658 6,337 Royalties 527 518 1,837 2,609 Total revenue 12,083 6,753 30,517 26,437 Costs and expenses: Cost of product sales (1) 613 912 2,589 3,998 Cost of contract revenue (1) 667 1,110 4,180 5,425 Research and development (1) 3,187 3,134 13,171 10,869 Selling and marketing (1) 1,443 930 4,739 3,738 General and administrative (1) 1,416 967 5,209 4,237 Total costs and expenses 7,326 7,053 29,888 28,267 Net income (loss) from operations 4,757 (300) 629 (1,830) Interest income 222 496 1,163 2,016 Net income before provision for income taxes 4,979 196 1,792 186 Provision for income taxes (1) (3) (16) (26) Net income $4,978 $193 $1,776 $160 Net income per share - basic $0.21 $0.01 $0.08 $0.01 Net income per share - diluted $0.21 $0.01 $0.07 $0.01 Weighted average shares - basic 23,290,502 23,818,467 23,637,950 23,737,715 Weighted average shares - diluted 23,292,639 24,917,360 23,696,519 25,083,700 (1) Effective January 1, 2006 the Company adopted Statement of Financial Accounting Standard No. 123 (Revised), "Share-Based Payment" (FAS 123(R)). The amounts in the tables above include stock-based compensation as follows (in thousands): Three Months Ended Year Ended
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