Aware has issued its results for the third quarter, with the numbers reflecting a reduction in biometrics software license sales and the lack of a major client the company has in the corresponding period of 2018.
Revenues for the third quarter came in at $3 million, compared to revenues of $5.4 million in Q3 of 2018. The company’s net result was a loss of $0.2 million, compared to a net income of $1.3 million in the corresponding period a year ago.
Looking to the year to date, revenues amount to $9.8 million, compared to revenues of $12.1 million in the first nine months of 2018. The company is also reporting a net loss of $0.9 million for the first three quarters of 2019, compared to a net income of $0.6 million in the comparable period of 2018.
In a statement announcing the results, Aware’s new CEO, Robert Eckel, acknowledged that they “were below expectations.” But he noted that Aware’s earnings “fluctuate based on the timing of the delivery of licenses and services for projects,” and that they are “impacted by our business model shift to more subscription arrangements that are based on multiyear enterprise, per user or per transaction-based contracts that are more backend weighted as opposed to upfront license deals.” Eckel also pointed out that Aware has seen higher expenses due to “continued investments in productized solutions and business development”.
Looking ahead, Eckel appeared unfazed by the downshift in Q3. “We are optimistic about the prospects for our business, as we are engaged with a number of quality companies and organizations who are looking to enhance and advance their business practices with Aware biometric solutions,” he said.
October 31, 2019 – by Alex Perala