Biometrics technology and services provider Aware, Inc. has posted its Q2 fiscal results. With both revenue and net income down against last year, the company is seeking to reconfigure its business strategy.
In the second quarter of last year, Aware brought in $6.8 million, whereas this year’s Q2 revenue was $4.5 million, representing a 33 percent decrease. Net income, meanwhile, saw a comparable decrease, moving from $0.9 million last year to $0.3 million for Q2 this year.
The company attributes most of the decreases on the fact that a major government project is now wrapping up. In a statement, Aware CFO and co-CEO Rick Moburg explained that “[q]uarterly revenue and earnings fluctuate based on project wins and the timing of delivery of licenses and services for those projects,” adding, “Financial results this quarter are a reflection of these fluctuations.” And the company’s history backs him up on that point: Last year’s Q2 earnings were actually huge increases over Q2 2013, due to a variety of factors including the shuttering of the company’s DSL business and the launch of its Nexa line of biometric SDKs.
In any case, with the major government project coming to an end, the company is accordingly looking to other opportunities. Moburg suggested that Aware is “moving through a transition in which we are working on lessening our dependence on government markets by moving into new commercial markets,” and while he was refreshingly candid in noting that “it is too early to predict whether we will be successful in these markets,” he maintained that the company’s managers feel “optimistic they could develop into meaningful sources of revenue.”
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July 24, 2015 – by Alex Perala
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