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

r DSL hardware products. Biometric factors include, but are not limited to: market acceptance of our biometric technologies and products; changes in contracting practices of government or law enforcement agencies; the failure of the biometrics market to experience continued growth; announcements or introductions of new technologies or products by our competitors; failures or problems in our biometric software products; delays in the adoption of new industry biometric standards; growth of proprietary biometric systems which do not conform to industry standards; our ability to sell services contracts in a manner that is consistent with our business model; our ability to deliver services contract milestones; and our dependence on third party contractors and consultants to deliver certain services contract milestones. Further, there can be no assurance as to the timing of a possible transaction with respect to our patent portfolio or whether such a transaction will be completed.

We refer you to the documents Aware files from time to time with the Securities and Exchange Commission, specifically the section titled Risk Factors in our annual report on Form 10-K for the fiscal year ended December 31, 2011 and other reports and filings made with the Securities and Exchange Commission.

Aware is a trademark or registered trademark of Aware, Inc.
Any other trademarks appearing herein are the property of their respective owners.
AWARE, INCCONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share data) (unaudited)Three Months EndedJune 30,Six Months EndedJune 30,2012201120122011Revenue:Product sales

$4,027$3,997$8,578$9,075Services

6831,3751,3752,204Royalties

6245411,115993Total revenue

5,3345,91311,06812,272Costs and expenses:Cost of product sales

8301,0871,2902,308Cost of services

361450717807Research and development

1,6531,8103,4063,770Selling and marketing

1,0461,
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SOURCE Aware, Inc.
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