Well here it is gang. .09 basic, .08 diluted. Was the section I have bolded below known? If so I missed it. Everyone is buying into AWRE technology.
Royalties up 1000% y over y. Not too shabby. Overall a good, bullish report. The future looks on track and quite bright.
Aware, Inc. Reports Record Revenue and Profitability for Fourth Quarter
and Full Year 1999
BEDFORD, Mass.--(BUSINESS WIRE)--Jan. 27, 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 fourth quarter and full year ended December 31, 1999.
Fourth quarter 1999 revenue increased 52 percent to $6.1 million, compared to $4.0 million for the quarter ended December
31, 1998. Net income for the quarter was $1.9 million, or 8 cents per diluted share, which compares to net income of
$575,000, or 3 cents per diluted share for the same quarter last year.
For the year ended December 31, 1999, revenue increased 74 percent to $20.5 million, compared to $11.8 million in 1998.
Net income for 1999 was $4.9 million, or 21 cents per diluted share, which compares to a net loss of $2.2 million, or minus 11
cents per diluted share, for 1998.
Commenting on Aware's financial performance, Michael Tzannes, president and chief executive officer, said: "1999 was a
momentous year for Aware capped off by a record fourth quarter. The company exceeded financial expectations as earnings
increased from a loss of 11 cents per share in 1998 to a profit of 21 cents in 1999, which translates into a positive earnings
swing of more than $7.1 million. Our results reflect the inexorable march of the DSL market towards mass deployment and the
strength of our business."
Tzannes added: "During the past three months, industry events continued to signal the advancement of wide-scale deployment of
DSL services. Some of these events include: ramping deployment of DSL services by domestic and international service
providers, a positive ruling by the FCC opening up incumbent telco networks to new DSL service providers, the Consumer
Electronics Show which began to demonstrate how the consumer electronics industry will play an important role in DSL, and
the AOL/Time Warner merger announcement which further highlighted the importance of increased bandwidth in the new world
order created by the Internet. The industry as a whole also made good progress improving interoperability between vendor
solutions."
"As for our own business," Tzannes continued, "we are encouraged by the success of our customers' products, which utilize
Aware's DSL technology. In particular, Analog Devices announced that it had sold its one millionth ADSL chipset, that the
world's single largest deployment of ADSL at Korea Telecom would be based on ADI's chipset, and that ADI was unveiling a
multi-port ADSL chipset. In January 2000, Lucent announced that Hewlett Packard, along with Compaq, Dell, Zoom and
other personal computer manufacturers, had selected the Wildwire(TM) DSL chipset. In addition to these customers who have
chipsets on the market, development projects with other customers, including Intel, continue on schedule."
He concluded: "In January, we announced the broadening of our DSL technology offerings with solutions for fast retrain,
optimized multiport chipsets, and ADSL over ISDN. We are pleased with our ability to continue to execute on the engineering
and sales fronts. Further, we believe we have the correct business model for the DSL industry and remain bullish about our
business."
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
December 31, December 31,
1999 1998
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $ 36,265,577 $ 26,566,959
Accounts receivable, net 5,705,914 2,901,724
Other assets 891,213 372,961
Total current assets 42,862,704 29,841,644
Property and equipment, net 11,619,761 10,320,581
Total assets $ 54,482,465 $ 40,162,225
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $ 1,513,668 $ 1,028,399
Stockholders' equity:
Common stock 219,181 209,114
Additional paid-in capital 64,865,465 55,938,189
Accumulated deficit (12,115,849) (17,013,477)
Total stockholders' equity 52,968,797 39,133,826
Total liabilities and
stockholders' equity $ 54,482,465 $ 40,162,225
AWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
Revenue:
Product sales $1,637,536 $921,715 $5,534,465 $3,093,294
Contract revenue 2,587,000 2,890,373 10,594,211 8,285,364
Royalties 1,878,452 202,029 4,398,438 417,672
Total revenue 6,102,988 4,014,117 20,527,114 11,796,330
Costs and expenses:
Cost of product sales 406,041 258,330 1,363,272 1,393,941
Cost of contract
revenue 1,841,058 1,803,343 7,053,119 5,431,136
Research and
development 1,263,983 646,093 3,635,829 3,886,935
Selling and marketing 598,160 579,903 2,574,549 2,829,596
General and
administrative 618,515 565,601 2,579,806 2,205,951
Total costs and
expenses 4,727,757 3,853,270 17,206,575 15,747,559
Income (loss) from
operations 1,375,231 160,847 3,320,539 (3,951,229)
Other income
and expense -- 104,180 18,300 404,930
Interest income 502,075 309,739 1,558,789 1,296,878
Income (loss) before
provision for
income taxes 1,877,306 574,766 4,897,628 (2,249,421)
Provision for
income taxes -- -- -- --
Net income (loss) $1,877,306 $574,766 $4,897,628 ($2,249,421)
Net income (loss)
per share - basic $0.09 $0.03 $0.23 ($0.11)
Net income (loss)
per share - diluted $0.08 $0.03 $0.21 ($0.11)
Weighted average
shares - basic 21,828,368 20,790,629 21,496,864 20,343,339
Weighted average
shares - diluted 23,495,998 22,089,258 23,584,688 20,343,339 |
