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

nt 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, 2009 and other reports and filings made with the Securities and Exchange Commission.

Aware and Dr. DSL are trademarks or registered trademarks 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 EndedSeptember 30,Nine Months EndedSeptember 30,2010200920102009Revenue:Product sales

$5,026$4,661$13,588$11,332Contract revenue

4881,0051,0433,725Royalties

6375542,1071,500Total revenue

6,1516,22016,73816,557Costs and expenses:Cost of product sales (1)

1,2368573,1122,413Cost of contract revenue (1)

2067173522,534Research and development (1)

2,0823,1756,1989,344Selling and marketing (1)

1,0291,2513,1483,517General and administrative (1)

1,6501,3834,4693,812Total costs and expenses

6,2037,38317,27921,620Loss from operations

(52)(1,163)(541)(5,063)Other income

100-425-Interest income

283167217Income (loss) before provision for income taxes76(1,132)(49)(
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SOURCE Aware, Inc.
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