7/25...AWRE...Net Income Jumps 182% in Seventh Consecutive Profitable Quarter
BEDFORD, Mass.--(BUSINESS WIRE)--July 25, 2000--Aware, Inc. (NASDAQ: AWRE - news), 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 second quarter ended June 30, 2000.
Second quarter 2000 revenue increased 53 percent to $7.2 million, compared to $4.7 million for the quarter ended June 30, 1999. Net income for the quarter increased 182 percent to $2.6 million, or 11 cents per diluted share, compared to net income of $919,000, or 4 cents per diluted share for the same quarter last year.
For the six months ended June 30, 2000, revenue increased 51 percent to $13.6 million, compared to $9.0 million in the same period last year. Net income for the first six months of 2000 increased 194 percent to $4.7 million, or 20 cents per diluted share, compared to net income of $1.6 million, or 7 cents per diluted share, for the first six months of 1999.
Commenting on Aware's financial performance, Michael Tzannes, president and chief executive officer, said: ``This was another excellent quarter for Aware. We have been profitable for seven consecutive quarters and our results this quarter reflect the continued success of our customers' DSL chipsets as well as increased demand for our DSL technology by semiconductor companies.''
Further commenting on financial results, Tzannes added: ``For the second quarter in a row, royalty revenue represented 40% or more of our total revenue. Contract revenue, which is generated from chipset developments with our semiconductor customers, was a record this quarter. Five customers each accounted for approximately 10% or more of contract revenues.''
Continuing, he said: ``We are at various stages of development on more than ten chipsets with seven customers. These DSL chipsets are targeted at numerous equipment architectures for the growing central office (CO) and customer premises equipment (CPE) markets, and each one represents an opportunity for future royalty revenues.''
Tzannes also commented: ``Analog Devices, which has now shipped three chipset generations based upon our technology in high volumes, made several significant announcements this quarter. ADI expects to sell more than 6 million ADI/Aware ADSL chipsets in their fiscal year. ADI also announced that it will be making Aware's voice-enabled DSL (VeDSL) technology available as part of ADI's family of ADSL chipset solutions. VeDSL uses DSL to cost-effectively provide multiple lines of residential voice service.''
Commenting on new technology developments, Tzannes said: ``At Aware, we are committed to developing innovative solutions that improve the value of DSL for the semiconductor, equipment and service provider industries. This quarter we demonstrated our new VeDSL and Dr. DSL(TM) technologies at SUPERCOMM'00 in Atlanta.''
Tzannes added: ``Aware was included in Standard & Poor's Small Cap 600 Index in June. Our inclusion in this index means that we are being recognized for the growth of our business and market capitalization. We are pleased to be included in S&P's index as we believe that it will have a positive impact for our stockholders.''
Tzannes concluded: ``Based upon our performance this quarter and our visibility into future quarters, we are revising upward our earnings growth expectation for this year. Our previously stated goal was to double earnings - we are now expecting greater than 100% bottom line growth for the 2000 calendar year.''
Note: Aware's conference call will be broadcast live over the Internet on Tuesday, July 25, 2000 at 5:00 p.m. Eastern Time. To listen to the call, please go to www.aware.com, and click on ``Investor Relations.''
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.
AWARE, INC.
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2000 1999
ASSETS
Current assets:
Cash, cash equivalents
and short-term investments $46,607,054 $36,265,577
Accounts receivable, net 7,001,333 5,705,914
Other assets 492,973 891,213
Total current assets 54,101,360 42,862,704
Property and equipment, net 11,437,684 11,619,761
Total assets $65,539,044 $54,482,465
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $ 1,484,361 $ 1,513,668
Total stockholders' equity 64,054,683 52,968,797
Total liabilities and
stockholders' equity $65,539,044 $54,482,465
AWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Revenue:
Product sales $ 1,174,209 $ 1,431,126 $ 2,366,101 $ 2,655,831
Contract revenue 3,170,000 2,498,950 5,721,666 5,060,211
Royalties 2,853,863 780,723 5,517,113 1,301,025
Total revenue 7,198,072 4,710,799 13,604,880 9,017,067
Costs and expenses:
Cost of
product sales 232,026 343,243 374,948 589,250
Cost of
contract revenue 2,204,930 1,625,033 4,176,090 3,384,092
Research and
development 1,338,624 775,056 2,752,407 1,557,785
Selling and
marketing 673,345 711,944 1,340,387 1,298,740
General and
administrative 830,561 681,387 1,502,522 1,274,522
Total costs
and expenses 5,279,486 4,136,663 10,146,354 8,104,389
Income from
operations 1,918,586 574,136 3,458,526 912,678
Other income -- -- -- 18,300
Interest income 669,501 344,841 1,239,464 664,962
Income before
provision for
income taxes 2,588,087 918,977 4,697,990 1,595,940
Provision for
income taxes -- -- -- --
Net income $ 2,588,087 $ 918,977 $ 4,697,990 $ 1,595,940
Net income per
share - basic $ 0.12 $ 0.04 $ 0.21 $ 0.08
Net income per
share - diluted $ 0.11 $ 0.04 $ 0.20 $ 0.07
Weighted average
shares - basic 22,474,584 21,407,811 22,352,247 21,253,747
Weighted average
shares - diluted 23,810,643 23,760,248 23,844,855 23,593,016
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Contact:
Aware, Inc.
Kristin Griffin
(781) 687-0500
kgriffin@aware.com |
