Aware, Inc. Reports Record Revenue and Profitability for Third Quarter 1999
BEDFORD, Mass.--(BUSINESS WIRE)--Oct. 25, 1999--Aware, Inc.
(NASDAQ:AWRE), a worldwide leader in DSL (digital subscriber line)
technology for high-speed Internet access over existing telephone
networks, today reported financial results for its third quarter ended
September 30, 1999.
Third quarter 1999 revenue increased 62 percent to $5.4 million,
compared to $3.3 million for the quarter ended September 30, 1998. Net
income for the quarter was $1.4 million, or 6 cents per diluted share,
which compares to a net loss of $78,000, or zero cents per diluted
share for the same quarter last year.
For the nine months ended September 30, 1999, revenue increased
85 percent to $14.4 million, compared to $7.8 million in the same
period last year. Net income for the first nine months of 1999 was
$3.0 million, or 13 cents per diluted share, which compares to a net
loss of $2.8 million, or minus 14 cents per diluted share, for the
first nine months of 1998.
"The third quarter of 1999 was the best quarter in the history of
the company," said Michael Tzannes, president and chief executive
officer. "Record financial results were only one aspect of why this
was an excellent quarter for us. Other positive aspects include growth
of the DSL industry in general and the continued successful execution
of Aware's business model in particular. Each passing quarter provides
further validation that our intellectual property business model is
well-suited to the emerging DSL industry."
Tzannes continued: "The DSL market continued to demonstrate very
positive growth in the third quarter. In June 1999, public sources
estimated that high-speed Internet access services based upon DSL
would be offered to more than 40 million homes in the United States by
the end of this year. Those estimates have now increased to more than
50 million homes as the regional bell operating companies and
competitive local exchange carriers continue to become more aggressive
in their roll-out plans. DSL roll-outs are continuing to ramp in
European countries as well. There is little doubt that broadband
residential services based upon DSL will become a global mass market."
He also noted: "Aware continued to execute on its strategy during
the third quarter. On October 20, 1999, Aware announced a DSL
development and licensing agreement with Intel Corporation. Under that
agreement, Intel will use Aware's full-rate ADSL and G.Lite technology
in its future DSL product offerings. We are pleased to be working with
a world-class company like Intel to develop dual-mode full-rate and
G.Lite solutions for the broadband residential market. The Intel
agreement is a significant and important agreement for Aware. While
the financial details of this relationship have not been disclosed,
they are consistent with standard licensing terms for Aware's DSL
technology. In addition to Intel, our sales pipeline of new
semiconductor customers remains strong."
Tzannes concluded: "Aware's chipset customers made good progress
with development efforts and deployments this quarter . Infineon
Technologies announced the availability of their four-port integrated
G.Lite/POTS chipset. Analog Devices ADSL chipsets are being used in
DSL products from Cisco, Lucent SAS, Nortel, Newbridge Network,
Efficient Networks and 3Com. Lucent Microelectronics' Wildwire chipset
is being used for Desktop PCs by Compaq, Dell, Zoom Telephonics and
other modem manufacturers. The propagation of Aware's technology will
continue as our existing, as well as new, Aware-enabled semiconductor
customers come to market with their products." |
