Aware, Inc. has issued its results for the third quarter.
Revenues for Q3 came in at $2.5 million, compared to an intake of $3.0 million in Q3 of 2019. Aware also reports an operating loss of $2.5 million, compared to an operating loss of $1.2 million a year ago.
Aware credited its lower revenues to “temporary delays caused by COVID-19,” while the higher operating loss was due in part to investments in R&D and sales efforts, higher personnel costs, and “expenses associated with COVID-19 remote working.”
That having been said, the fiscal results mark an improvement over Q2 of this year. Sequentially, revenues increased by about $600,000, while the operating loss was reduced by $1.2 million. And while Aware’s net loss of $1.8 million is steeper than the net loss of $0.2 million in Q3 of 2019, it was better than the net loss of $3.1 million in Q2 of 2020.
Business during the third quarter appears to have primarily revolved around Aware’s Knomi biometric authentication solution. The company delivered an updated version of the platform in early September, and Knomi passed Level 2 of iBeta’s Presentation Attack Detection evaluation shortly thereafter. Aware listed these as operational highlights of the quarter, alongside the use of Knomi to track criminals on probation or parole in the state of Arkansas.
Commenting on the third quarter performance, Aware CEO Bob Eckel emphasized that his team “increased our focus on operational and growth initiatives, including expanding our marketing efforts and reallocating resources to align our go-to-market approach with trends in our target markets.” Eckel added that “early traction on these initiatives has quadrupled subscription revenue and tripled the number of Knomi subscription customers year-to-date”.
“We’re encouraged by our progress and look forward to realizing even greater ROI as we roll out our strategic roadmap in the coming quarters,” he said.
October 28, 2020 – by Alex Perala