AWARE, INC. REPORTS FINANCIAL RESULTS
FOR FOURTH QUARTER OF 1997
Aware Unveils DSL Lite and Ships X200 Access Router
BEDFORD, Mass., January 27, 1998 - Aware, Inc. (NASDAQ: AWRE), a worldwide leader in xDSL (digital subscriber line) technology, today reported its fourth quarter and fiscal 1997 financial results for the period ending December 31, 1997.
Fourth quarter 1997 revenue was $1.8 million compared to $1.7 million in the fourth quarter of 1996. The net loss for the quarter was $1.8 million, or minus 9 cents per diluted share, which compares to a net loss of $92,000, or zero cents per diluted share in the last year's fourth quarter.
For the full year, revenue was $6.2 million, compared to $5.3 million in 1996. This represents a 17% increase. The net loss for the year was $4.4 million, or minus 23 cents per diluted share, which compares to net income of $259,000, or 1 cent per diluted share, for 1996.
Jim Bender, president and chief executive officer of Aware stated: "The fourth quarter was highlighted by the unveiling of our splitterless DSL Lite technology and the excitement it is generating among customers, prospects and the national news media. The new, simplified version of DSL addresses consumers' growing need for bandwidth by solving the problems associated with delivering cost-effective, high-speed Internet access to homes and businesses."
About Aware
Headquartered in Bedford, Massachusetts, Aware, Inc. is a worldwide leader in xDSL technology with products that enable new broadband services over the existing telephone network. Aware's products include xDSL technology, software modules and modems for high-speed, interactive broadband network applications. More information about Aware, Inc. can be found on the World Wide Web 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 described in various SEC filings that Aware, Inc. has made on its Forms S-1, 10-K, and 10-Q, which factors are incorporated herein by reference.
AWARE, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(unaudited)
ÿÿ
December 31, 1997
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ÿ
December 31, 1996
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ASSETSÿÿÿÿCurrent assets:ÿÿÿÿ<Picture>Cash and cash equivalents ÿ$23,496,508ÿ$31,092,273<Picture>Short-term investments ÿ2,607,411ÿ5,626,725<Picture>Accounts receivable (less allowance for doubtful accounts of
<Picture>$50,000 in 1997 and $35,000 in 1996) ÿ1,824,119ÿ1,654,980<Picture>Unbilled accounts receivable ÿ-ÿ110,722<Picture>Inventories ÿ215,622ÿ447,534<Picture>Prepaid expenses ÿ290,847
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ÿ23,426
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<Picture>Total current assetsÿ28,434,507ÿ38,955,660ÿÿÿÿÿProperty and equipment, net of accumulated depreciation and
<Picture>amortization of $1,330,000 in 1997 and $558,000 in 1996 ÿ10,846,025
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ÿ1,166,928
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ÿÿÿÿÿTotal assets ÿ$39,280,532
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ÿ$40,122,588
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ÿÿÿÿÿLIABILITIES AND STOCKHOLDERS' EQUITYÿÿÿÿÿÿÿÿÿCurrent liabilities:ÿÿÿÿ<Picture>Accounts payable ÿ$1,075,126ÿ$337,339<Picture>Accrued expenses ÿ185,676ÿ60,091<Picture>Accrued compensation ÿ326,558ÿ173,692<Picture>Accrued professional fees ÿ73,370ÿ65,000<Picture>Deferred revenue ÿ-
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ÿ40,000
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<Picture>Total current liabilities ÿ1,660,730ÿ676,122ÿÿÿÿÿStockholders' equity:ÿÿÿÿ<Picture>Preferred stock, $1.00 par value; 1,000,000 shares authorized, none outstanding ÿ-ÿ-<Picture>Common stock, $.01 par value; 30,000,000 shares authorized; issued
<Picture>and outstanding, 19,646,024 in 1997 and 18,959,897 in 1996 ÿ196,460ÿ189,600<Picture>Additional paid-in capital ÿ52,640,360ÿ50,025,548<Picture>Accumulated deficit ÿ(14,764,056)ÿ(10,315,720)<Picture>Treasury stock ÿ(452,962)
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ÿ(452,962)
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<Picture>Total stockholders' equity ÿ37,619,802ÿ39,446,466ÿÿÿÿÿTotal liabilities and stockholders' equity ÿ$39,280,532
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ÿ$40,122,588
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AWARE, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
ÿÿ
Three Months Ended
December 31,
ÿ
Year Ended
December 31,
ÿÿ1997ÿ1996ÿ1997ÿ1996Revenue:ÿÿÿÿÿÿÿÿ<Picture>Product ÿ$399,259ÿ$119,477ÿ$973,782ÿ$649,422<Picture>License and royalty ÿ730,021ÿ749,586ÿ3,031,483ÿ2,971,238<Picture>Research and development ÿ674,769
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ÿ835,748
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ÿ2,192,786
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ÿ1,680,449
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<Picture>Total revenueÿ1,804,049ÿ1,704,811ÿ6,198,051ÿ5,301,109ÿÿÿÿÿÿÿÿÿCosts and expenses:ÿÿÿÿÿÿÿÿ<Picture>Cost of product revenue ÿ372,244ÿ466,536ÿ1,251,677ÿ831,241<Picture>Research and development ÿ2,192,160ÿ1,243,889ÿ6,874,137ÿ3,234,799<Picture>Selling and marketing ÿ813,720ÿ260,279ÿ2,285,726ÿ769,396<Picture>General and administrative ÿ540,173
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ÿ312,582
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ÿ1,943,187
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ÿ1,003,948
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<Picture>Total costs and expensesÿ3,918,297ÿ2,283,286ÿ12,354,727ÿ5,839,384ÿÿÿÿÿÿÿÿÿIncome (loss) from operations ÿ(2,114,248)ÿ(578,475)ÿ(6,156,676)ÿ(538,275)Interest income ÿ363,558
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ÿ486,355
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ÿ1,708,340
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ÿ797,656
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ÿÿÿÿÿÿÿÿÿNet income (loss) before provision for income taxes ÿ(1,750,690)ÿ(92,120)ÿ(4,448,336)ÿ259,381Provision for income taxes ÿ-
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ÿ-
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ÿ-
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ÿ-
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ÿÿÿÿÿÿÿÿÿNet income (loss) ÿ($1,750,690)
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ÿ($92,120)
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ÿ($4,448,336)
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ÿ$259,381
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ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿNet income (loss) per share - Basic ÿ($0.09)ÿ($0.00)ÿ($0.23)ÿ$0.02Net income (loss) per share - Diluted ÿ($0.09)ÿ($0.00)ÿ($0.23)ÿ$0.01ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿWeighted average common shares ÿ19,537,824ÿ19,814,486ÿ19,328,252ÿ11,244,868Weighted average common shares
and equivalents - assuming dilution ÿ19,537,824ÿ19,814,486ÿ19,328,252ÿ18,394,395ÿÿÿÿÿÿÿÿÿ
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