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Aware, Inc. Reports Third Quarter 2010 Financial Results
Date:10/28/2010

BEDFORD, Mass., Oct. 28 /PRNewswire-FirstCall/ -- Aware, Inc. (Nasdaq: AWRE), a leading supplier of broadband technology and biometrics software, today reported financial results for its third quarter ended September 30, 2010.  

Revenues for the third quarter of 2010 were $6.15 million, a decrease of 1% compared to $6.22 million in the same quarter last year. Net income for the third quarter of 2010 was $76,000, or $0.00 per diluted share. These results compared to a net loss of $1.1 million, or $0.06 per diluted share, for the same period a year ago.

For the nine months ended September 30, 2010, revenues increased 1% to $16.7 million, compared to $16.6 million in the same period a year ago. The net loss for the nine months ended September 30, 2010 was $50,000, or $0.00 per diluted share. These results compared to a net loss of $4.9 million, or $0.23 per diluted share, for the same period a year ago.

The Company reports its net income and basic and diluted net income per share in accordance with U.S. generally accepted accounting principles (GAAP), and additionally, on a non-GAAP basis. Non-GAAP net income, where applicable, excludes the effect of stock-based compensation expense. The Company uses the non-GAAP information internally to evaluate its operating performance and believes these non-GAAP measures are useful to investors as they provide additional insight into the underlying operating results. However, non-GAAP measures are not stated in accordance with, should not be considered in isolation from, and are not a substitute for, GAAP measures. A reconciliation of GAAP to non-GAAP results has been provided in the attached financial tables.  

Non-GAAP net income for the third quarter of 2010, excluding the effect of $621,000 of stock-based compensation, was $697,000, or $0.03 per diluted share.  These results compared to a non-GAAP net
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