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Aware, Inc. Reports Second Quarter 2011 Financial Results
Date:7/26/2011

was due to lower royalties reported to us by one of our legacy DSL chip licensees.

Spending grew 13% from $5.5 million in the second quarter of 2010 to $6.2 million this quarter. The $0.7 million spending increase was the result of two sets of factors, one of which partially offset the other.  Spending was higher due to: 1) the aforementioned one-time severance costs related to the resignation of our former CEO; 2) higher hardware cost of goods sold on higher hardware sales; and 3) higher biometrics engineering expenses to support the increase in biometrics services revenue. Spending increases related to this set of factors were partially offset by lower legal fees and lower director and officer compensation.

We had 82 full time employees at June 30, 2011, which was down two heads from the end of last quarter.

Rick Moberg, Aware's co-chief executive officer and chief financial officer, said, "Adjusting for one-time costs in the second quarter, our operating businesses were profitable in both the first and second quarters of this year. While it is difficult to forecast future revenue and profitability with any degree of certainty, we are encouraged by the growth of our services business and our sales pipeline for biometrics software and services and DSL test and diagnostics software."

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 respect to its patent licensing operations, including a potential spin-off.

About AwareAware is a leading technology and software supplier for the telecommunications and biometrics industries. Aware has pioneered innovations at telecommunications standards-setting organizations for DSL and home networking. Telecom equipment vendors and phone companies use Aware's DSL test and diagnostics modules and

SOURCE Aware, Inc.
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