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Aware, Inc. Reports Second Quarter 2012 Financial Results
Date:7/26/2012

anticipate that we will complete the shutdown during the third quarter of 2012.

Services revenue declined from $1.4 million in the second quarter of 2011 to $683,000 this quarter. The decrease was primarily due to lower revenue from the sale of biometrics engineering services.  

Royalties increased from $541,000 in the second quarter of 2011 to $624,000 this quarter.  The increase was due to higher royalties reported to us by one of our DSL chip licensees.

Spending declined from $6.2 million in the second quarter of 2011 to $5.0 million this quarter. The $1.2 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. In addition, the second quarter of 2011 included $0.6 million of severance related expenses for our former CEO.

We had 77 full time employees at June 30, 2012, which was the same as December 31, 2011.

Kevin Russell, Aware's co-chief executive officer and general counsel, said, "We are pleased to report that this is our fourth consecutive profitable quarter on an operating and net income basis. Net income of $54.9 million this quarter was driven by our closing a significant sale of patent assets for $75 million. We also continue to be encouraged by growth opportunities in our operating businesses."  

About Aware
Aware is a leading software and technology supplier for the biometrics, telecommunications, and healthcare industries. Aware's biometrics software products and services are provided to solution vendors and system integrators for use by government agencies towards applications including border management, secure credentials, law enforcement, and national defense. Aware's DSL Service Assurance Group offers
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SOURCE Aware, Inc.
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