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Aware, Inc. Reports Second Quarter 2013 Financial Results
Date:7/23/2013

service assurance factors include, but are not limited to: our DSL service assurance product line depends upon a limited number of customers; our DSL service assurance software products face intense competition; and our DSL service assurance software products could have quality problems. 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.

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, 2012 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, INC.CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share data) (unaudited)Three Months Ended
June 30,Six Months Ended
June 30,2013201220132012Revenue:Software licenses$1,562$1,843$5,370$4,683Software maintenance1,1239292,1641,810Services7596831,2351,376Hardware sales1,129-1,129-Royalties2776245681,115Total revenue4,8504,07910,4668,984Costs and expenses:Cost of hardware sales 813-813-
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