Aware, Inc. Reports Third Quarter 2009 Financi...(rs for components in our DSL hardware pr...)

Date:11/4/2009

rs for components in our 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 service 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, 2008 and other reports and filings made with the Securities and Exchange Commission.

Aware, StratiPHY, and Dr. DSL are trademarks or registered trademarks of Aware, Inc.

                                 AWARE, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      (In thousands, except per share data)
                                 (unaudited)

                                      Three Months Ended Nine Months Ended
                                         September 30,     September 30,
                                         2009    2008      2009     2008
    Revenue:
      Product sales                    $4,661  $3,939   $11,332  $11,811
      Contract revenue                  1,005   2,014     3,725    5,313
      Royalties                           554     437     1,500    1,310
                                          ---     ---     -----   
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SOURCE  Aware, Inc.
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