Aware reports second quarter results
26 July 2017 14:30 GMT

Biometric software firm Aware reported financial results for its second quarter ended 30 June, registering a fall in revenue.

Revenue for the second quarter of 2017 was $2.7 million, a decrease of 60% compared to $6.9 million in the same quarter last year. Operating income in the second quarter of 2017 was $0.2 million compared to $2.1 million in the second quarter of 2016.

The firm said the decrease in revenue and operating income were primarily due to: i) a large biometrics software license sale to a U.S. government military customer in the second quarter of 2016 whereas there was no such sale in the current three month period; and ii) revenue from a large medical imaging license sale in the second quarter of 2016 whereas there was no such revenue in the current three month period.  The resulting decline in operating income was partially offset by: i) patent related income from an unaffiliated third party; and ii) lower cost of software licenses.

Net income in the second quarter of 2017 was $0.2 million, or $0.01per diluted share, which compares to $1.4 million, or $0.06 per diluted share, in the same period a year ago.

Revenue for the first six months of 2017 was $7.1 million, a decrease of 40% compared to $11.7 million in the same six month period last year. Operating income for the first six months of 2017 was $0.6 million compared to $3.0 millionin the same period last year. The decrease in revenue and operating income were primarily due to: i) a large biometrics software license sale to a U.S. government military customer in the second quarter of 2016 whereas there no such sale in the first six months of 2017, ii) revenue from a large medical imaging license sale in the first six months of 2016 whereas there was no such revenue in the corresponding period of 2017; and iii) no hardware sales in the first six months of 2017.  The resulting decline in operating income was partially offset by: i) patent related income from an unaffiliated third party, ii) lower cost of software licenses; and iii) lower cost of hardware sales.

Net income for the first six months of 2017 was $0.6 million, or $0.03 per diluted share, which compares to $2.1 million, or $0.09 per diluted share, in the same period a year ago.

Kevin Russell, Aware's chief executive officer and president, said, "Our revenue results for the second quarter did not meet our expectations.  Our quarterly revenue and earnings fluctuate based on project wins and the timing of the delivery of licenses and services for those projects.  Financial results this quarter are a reflection of these fluctuations.  The ability to forecast the timing of revenue remains a challenge.  We continue to be encouraged by the interest in and opportunities for our biometric solutions in the government, commercial and mobile markets."