Aware, Inc. Reports Record Revenue and Profitability for First Quarter 2000; Royalties Rise to 42 Percent of Total Revenue
BEDFORD, Mass.--(BUSINESS WIRE)--April 18, 2000--Aware, Inc. (NASDAQ:AWRE), a worldwide leader in DSL (digital subscriber line) technology for high-speed Internet access over existing telephone networks, today reported record financial results for its first quarter ended March 31, 2000.
First quarter 2000 revenue increased 49 percent to $6.4 million, compared to $4.3 million for the quarter ended March 31, 1999. Net income for the quarter increased 212 percent to $2.1 million, or 9 cents per diluted share, compared to net income of $677,000, or 3 cents per diluted share for the same quarter last year.
Commenting on Aware's financial performance, Michael Tzannes, president and chief executive officer, said: "This was another exceptional quarter for our business. Royalty revenue this quarter was another record, validating our business model and signaling strong momentum of our technology in the market. Based upon this quarter's performance and our visibility into future quarters, we are confident that we can achieve 100 percent earnings growth this year."
Continuing, Tzannes added: "Our business has never been stronger. We are on track to grow our customer base according to plan. We have several new customers that we are excited about, and we look forward to announcing details in the future.
Some highlights from our announced customers this quarter include:
ADI stated that:
-- its ADSL chipsets power 8 of the world's top ten PSTN markets;
-- Samsung selected ADI's AD20msp918 chipset for use in its ADSL AceLink(TM)system being deployed at Korea Telecom, and
-- it is now offering a complete Universal Serial Bus (USB) reference design for customer premises equipment.
Lucent Microelectronics announced:
-- the availability of a three-in-one, "G.everything" modem chipset that enables V.90, full-rate ADSL, and G.Lite functionality, and
-- Samsung Electronics selected its Wildwire(TM) chipset, joining Compaq, Dell, Hewlett-Packard, and others that are using Lucent's chipset in personal computers."
Other customers made progress this quarter as well. Infineon made available its multi-port Lite central office chipset, and projects with Intel, NEC and others are progressing according to plans."
Tzannes also said: "Research and development activities at Aware are progressing very well. This quarter we announced and demonstrated our voice-enabled DSL (VeDSL), which is targeted at solving the important problem of using DSL for residential second line voice services. We will continue to announce our innovations, as they become available. Some of the areas we are working on include:
-- Technology that improves the pre-qualification, installation and maintenance of DSL services, and
-- VDSL technology that further increases the data rates that can be achieved on telephone lines."
Concluding, Tzannes stated: "Aware has just completed another outstanding quarter. Our business model is proving successful, our existing customers are executing well, and we are adding new customers and technologies for the future. The outlook for Aware has never been more exciting."
About Aware
Aware, Inc. designs, develops, licenses and markets DSL technology that enables broadband communications over existing telephone networks. The company licenses its intellectual property and software to semiconductor manufacturers and equipment manufacturers who sell products incorporating Aware technology. Aware also markets to systems companies to encourage them to design its technology into their products, and to service providers to encourage them to deploy new broadband services based on its technology. More information about Aware can be found 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 that Aware has a new and unproven business model, that Aware depends on a limited number of licensees, that Aware depends on equipment companies to incorporate its technology, and that DSL technology competes with other technologies for broadband access. These and other risks are described in various filings that Aware has made with the Securities and Exchange Commission, which risks are incorporated herein by reference. -0-
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AWARE, INC.
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2000 1999
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $42,318,159 $36,265,577
Accounts receivable, net 6,922,239 5,705,914
Other assets 1,102,571 891,213
Total current assets 50,342,969 42,862,704
Property and equipment, net 11,458,697 11,619,761
Total assets $61,801,666 $54,482,465
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $ 1,031,153 $ 1,513,668
Total stockholders' equity 60,770,513 52,968,797
Total liabilities and
stockholders' equity $61,801,666 $54,482,465
AWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
March 31,
2000 1999
Revenue:
Product sales $ 1,191,892 $ 1,224,705
Contract revenue 2,551,666 2,561,261
Royalties 2,663,250 520,302
Total revenue 6,406,808 4,306,268
Costs and expenses:
Cost of product sales 142,922 246,007
Cost of contract revenue 1,971,159 1,759,059
Research and development 1,413,784 782,729
Selling and marketing 667,042 586,796
General and administrative 671,961 593,135
Total costs and expenses 4,866,868 3,967,726
Income from operations 1,539,940 338,542
Other income and expense -- 18,300
Interest income 569,963 320,121
Income before provision
for income taxes 2,109,903 676,963
Provision for income taxes -- --
Net income $ 2,109,903 $ 676,963
Net income per share - basic $ 0.09 $ 0.03
Net income per share - diluted $ 0.09 $ 0.03
Weighted average shares - basic 22,229,909 21,097,978
Weighted average shares - diluted 23,879,848 23,372,593
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CONTACT: Aware, Inc.
Kristin Griffin, (781) 687-0500
kgriffin@aware.com
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