so good they put it out early
Aware, Inc. Reports Record Revenue and Profitability for Third Quarter 2000; Royalty Revenue Growth Drives New Levels of Profitability
BEDFORD, Mass.--(BUSINESS WIRE)--Oct. 19, 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 third quarter ended September 30, 2000.
Third quarter 2000 revenue increased 50 percent to $8.1 million, compared to $5.4 million for the quarter ended September 30, 1999. Net income for the quarter increased 146 percent to $3.5 million, or 15 cents per diluted share, compared to net income of $1.4 million, or 6 cents per diluted share for the same quarter last year.
For the nine months ended September 30, 2000, revenue increased 51 percent to $21.7 million, compared to $14.4 million in the same period last year. Net income for the first nine months of 2000 increased 172 percent to $8.2 million, or 34 cents per diluted share, compared to net income of $3.0 million, or 13 cents per diluted share, for the first nine months of 1999.
Commenting on Aware's financial performance, Michael Tzannes, president and chief executive officer, said: "This was another outstanding quarter for Aware. Our results reflect the quality of our technology, the success of our customers, the continued success of our business model, and strong growth in the ADSL industry. We invite you to our earnings release conference call this afternoon to hear our analysis of why Aware represents the best pure play investment in this rapidly growing worldwide market."
Tzannes added: "Royalties, which drive our profitability, grew 30% sequentially and 203% compared to the third quarter of 1999. Royalty revenue represented 46% of total revenue this quarter, which is up from 40% last quarter and 23% in the third quarter of 1999. Our lead customer, Analog Devices, made a significant contribution to our royalty growth this quarter. In August, ADI stated publicly that they expect to sell more than 7 million ADSL chips in their fiscal year that ends this later this month. Their latest estimate was revised upward from 6 million chips in May and 4 million chips in February."
Commenting on other customer developments, Tzannes said: "Contract revenue for the quarter was a record. We now have 11 ADSL chipsets under development with eight semiconductor companies including Intel, Infineon, Legerity (formerly AMD), NEC, Sigmatel and others. Each of these represent an opportunity for future royalties."
Tzannes added: "This quarter marks our eighth consecutive quarter of growing profitability and there is no end in sight. For the fourth quarter, we currently expect to achieve total revenue of approximately $9 million and diluted EPS of 16 cents, excluding income taxes. For 2001, we currently expect to achieve total revenue in the $45-47 million range and EPS of 86 to 91 cents, excluding income taxes."
In closing, Tzannes said: "Aware is a quality company in a quality industry. We have never felt better about our business and our future."
Note: Aware's conference call will be broadcast live over the Internet today Thursday, October 19, 2000 at 5:00 p.m. Eastern Time. To listen to the call, please go to www.aware.com, and click on "Investor Relations." |
