Loss of ($0.07) - Mean estimate was for a loss of ($0.06).
BEDFORD, Mass.--(BUSINESS WIRE)--April 16, 1998--Aware, Inc.
(NASDAQ:AWRE), a worldwide leader in xDSL (digital subscriber line)
technology, today reported financial results for its first quarter
ended March 31, 1998.
First quarter 1998 revenue increased 11 percent to $2.0 million,
compared with $1.8 million for the quarter ended March 31, 1997. The
net loss for the quarter was $1.5 million, or minus 7 cents per
diluted share, which compares to a net loss of $276,000, or minus 1
cent per diluted share for the same quarter last year.
Jim Bender, president and chief executive officer of Aware
stated: "During our first quarter, we continued to capitalize on the
industry momentum created by our splitterless DMT technology, making
two major strides in the drive toward widespread ADSL deployment. The
most noteworthy of these was the announcement of our agreement with
Lucent Technologies to develop splitterless DMT lite software that
will operate on Lucent digital signal processors."
"We also redefined the strategic partnership with our long-time
chipset partner, Analog Devices, enabling both companies to more
widely proliferate our technology, promote open systems and drive
interoperability. Both events represent significant milestones in the
industry-wide race to eliminate hurdles blocking economical
mass-deployment of ADSL."
About Aware
Headquartered in Bedford, Massachusetts, Aware, Inc. is a
worldwide leader in xDSL technology with products that enable new
broadband services over the existing telephone network. Aware's
products include xDSL technology, software modules and modems for
high-speed, interactive broadband network applications. More
information about Aware, Inc. can be found on the World Wide Web at
aware.com.
Note to Investors:
This press release contains certain statements of a
forward-looking nature relating to future events or the future
financial performance of Aware. Important factors that could cause
actual results to differ materially from those indicated by such
forward-looking statements include the risks described in various SEC
filings that Aware, Inc. has made on its Forms S-1, 10-K, and 10-Q,
which factors are incorporated herein by reference.
*T
AWARE, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(unaudited)
March 31, December 31,
1998 1997
ASSETS
Current assets:
Cash and cash equivalents $ 22,569,253 $ 23,496,508
Short-term investments 2,045,246 2,607,411
Accounts receivable (less
allowance for doubtful
accounts of $75,000 in 1998
and $50,000 in 1997) 2,195,621 1,824,119
Inventories 173,490 215,622
Prepaid expenses 316,737 290,847
Total current assets 27,300,347 28,434,507
Property and equipment, net
of accumulated depreciation
and amortization of $1,667,160
in 1998 and $1,330,281 in 1997 10,778,285 10,846,025
Total assets $ 38,078,632 $ 39,280,532
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 863,665 $ 1,075,126
Accrued expenses 247,766 185,676
Accrued compensation 216,646 326,558
Accrued professional 53,883 73,370
Total current liabilities 1,381,960 1,660,730
Stockholders' equity:
Preferred stock, $1.00
par value; 1,000,000 shares
authorized, none outstanding -- --
Common stock, $.01 par value;
30,000,000 shares authorized;
issued and outstanding,
19,838,982 in 1998 and
19,646,024 in 1997 198,390 196,460
Additional paid-in capital 52,717,774 52,640,360
Accumulated deficit (16,219,492) (14,764,056)
Treasury stock -- (452,962)
Total stockholders' equity 36,696,672 37,619,802
Total liabilities and
stockholders' equity $ 38,078,632 $ 39,280,532
AWARE, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended
March 31,
1998 1997
Revenue:
Product $435,175 $103,790
License and royalty 769,464 1,310,984
Research and development 799,377 386,311
Total revenue 2,004,016 1,801,085
Costs and expenses:
Cost of product revenue 377,133 281,557
Research and development 2,196,431 1,432,779
Selling and marketing 767,607 374,415
General and administrative 555,971 436,920
Total costs and expenses 3,897,142 2,525,671
Loss from operations (1,893,126) (724,586)
Other income and expense 99,000 -
Interest income 338,689 448,284
Net loss before provision for
income taxes (1,455,437) (276,302)
Provision for income taxes - -
Net loss ($1,455,437) ($276,302)
Net loss per share - basic ($0.07) ($0.01)
Net loss per share - diluted ($0.07) ($0.01)
Weighted average shares - basic 19,718,820 19,054,759
Weighted average shares - diluted 19,718,820 19,054,759
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