Aware, Inc. Reports First Quarter 1999 FinancialResults; Q1 Revenues of $4.3 Million Reach New Quarterly Record
April 20, 1999 04:03 PM
BEDFORD, Mass.--(BUSINESS WIRE)--April 20, 1999--Aware, Inc. AWRE , a worldwide leader in DSL (digital subscriber line) technology for high-speed Internet access over existing telephone networks, today reported financial results for its first quarter ended March 31, 1999.
First quarter 1999 revenue increased 115 percent to $4.3 million, compared to $2.0 million for the quarter ended March 31, 1998. Net income for the quarter was $677,000, or 3 cents per diluted share, which compares to a net loss of $1.5 million, or minus 7 cents per diluted share for the same quarter last year.
Commenting on the company's first quarter results, President and Chief Executive Officer Michael A. Tzannes stated: "Our revenues this quarter are the highest ever and reflect the building momentum in the DSL industry. In particular, royalty revenues reflect record sales of chipsets based upon Aware's DSL technology."
He added: "During the first quarter of fiscal 1999, Aware and Siemens ICN announced a strategic alliance under which the companies will define the next generation architecture for Siemens DSL-enabled EWSD, the most widely sold switching system in the world. Part of Aware's challenge is to remain on the leading edge of DSL technology developments; and under this alliance Aware is focused on developing DSL technology for upgrading existing telecommunications switch platforms. This relationship complements our existing customer base of Analog Devices, Lucent Microelectronics, 3COM/US Robotics, Siemens Semiconductors (now called Infineon Technologies) and, most recently, ST Microelectronics."
Tzannes continued: "The momentum in the DSL industry continues to build with significant service announcements by leading phone companies and contract awards by leading equipment manufacturers. Aware has positioned itself as a leading supplier of full rate and G.Lite DSL technology to this industry. We are beginning to reap the benefits of our strong market position and expect to continue to do so going forward."
About Aware
Aware, Inc. designs, develops, licenses and markets DSL technology that enables high-speed Internet access 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 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)
March 31, Dec. 31,
1999 1998
ASSETS
Current assets:
Cash and cash equivalents $24,191,856 $23,512,242
Short-term investments 5,019,410 3,054,717
Accounts receivable (less allowance
for doubtful accounts of $100,000
in 1999 and $100,000 in 1998) 3,879,663 2,901,724
Inventories 64,581 120,911
Prepaid expenses 251,911 252,050
Total current assets 33,407,421 29,841,644
Property and equipment, net of
accumulated depreciation and
amortization of $3,286,990
in 1999 and $2,860,516 in 1998 10,229,841 10,320,581
Total assets $43,637,262 $40,162,225
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 763,463 $ 479,704
Accrued expenses 134,113 127,525
Accrued compensation 447,694 324,669
Accrued professional 72,416 84,000
Deferred revenue 6,250 12,500
Total current liabilities 1,423,936 1,028,398
Stockholders' equity:
Preferred stock, $1.00 par value;
1,000,000 shares authorized,
none outstanding -- --
Common stock, $.01 par value;
30,000,000 shares authorized; issued
and outstanding, 21,234,313 in 1999
and 20,911,388 in 1998 212,343 209,114
Additional paid-in capital 58,337,496 55,938,189
Accumulated deficit (16,336,513) (17,013,476)
Total stockholders' equity 42,213,326 39,133,827
Total liabilities and
stockholders' equity $ 43,637,262 $ 40,162,225
AWARE, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended
March 31,
1999 1998
Revenue:
Product sales $ 1,224,705 $ 741,458
Contract revenue 2,561,261 1,199,377
Royalties 520,302 63,181
Total revenue 4,306,268 2,004,016
Costs and expenses:
Cost of product sales 246,007 377,133
Cost of contract revenue 1,714,268 1,099,075
Research and development 827,520 1,097,356
Selling and marketing 586,796 767,607
General and administrative 593,135 555,971
Total costs and expenses 3,967,726 3,897,142
Income (loss) from operations 338,542 (1,893,126)
Other income and expense 18,300 99,000
Interest income 320,121 338,689
Net income (loss) before provision for
income taxes 676,963 (1,455,437)
Provision for income taxes -- --
Net income (loss) $ 676,963 ($ 1,455,437)
Net income (loss) per share - basic $ 0.03 ($ 0.07)
Net income (loss) per share - diluted $ 0.03 ($ 0.07)
Weighted average shares - basic 21,097,978 19,718,820
Weighted average shares - diluted 23,372,593 19,718,820
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