Aware, Inc. (NASDAQ: AWRE), a leading supplier of biometrics software and services, today reported financial results for its second quarter ended June 30, 2016.
Revenue for the second quarter of 2016 was $6.9 million, an increase of 53% compared to $4.5 million in the same quarter last year. Operating income in the second quarter of 2016 was $2.1 million compared to $0.5 million in the second quarter of 2015. Net income in the second quarter of 2016 was $1.4 million, or $0.06 per diluted share, which compares to $0.3 million, or $0.01 per diluted share, in the same period a year ago.
Revenue for the first six months of 2016 was $11.7 million, an increase of 36% compared to $8.6 million in the same six month period last year. Operating income for the first six months of 2016 was $3.0 million compared to $0.9 million in the same period last year. Net income for the first six months of 2016 was $2.1 million, or$0.09 per diluted share, which compares to $0.6 million, or $0.03 per diluted share, in the same period a year ago.
The increase in revenue and operating income in the three and six month periods compared to the corresponding periods last year was primarily due to licensing revenue from: i) a large biometrics license sale to a U.S. government military customer in the second quarter; and ii) a 2015 medical imaging software sale that is being recognized over the period October 2015 to October 2016.
In April 2016, we announced a stock repurchase plan to purchase up to 10 million shares of our common stock. During the second quarter of 2016, we repurchased 81,980 shares of stock for a total of $349,000 under that program. For the most part, our purchases represent the maximum number of daily shares we were eligible to purchase under SEC rules on days we were not in our Company imposed quiet period. There were no block purchases during the quarter. Cash and investments were $53.1 million as of June 30, 2016.
Rick Moberg, Aware's co-chief executive officer and chief financial officer, said "We were pleased with the Company's excellent financial performance this quarter. Revenue and operating earnings were heavily influenced by a large license sale to one of our U.S. government military customers. This license sale came as a consequence of a multi-year software development project with this customer. We believe they may purchase additional licenses in the future.
We would like to remind shareholders that revenue and operating income have fluctuated significantly from quarter to quarter in the past and that this pattern is likely to continue in the future. Quarterly fluctuations are a consequence of the presence or absence of large license transactions, such as the one we closed this quarter. While it is difficult for us to predict the outcome of any particular quarter, we believe that over longer periods of time we will continue to generate satisfactory levels of earnings and cash."
About Aware
Aware is a leading provider of biometrics software products and development services to governments, system integrators, and solution providers globally. Our products include SDKs, software components, workstation applications, and a modular, centralized, service-oriented platform. They fulfill a broad range of functions critical to biometric authentication and search, including face, fingerprint, and iris autocapture, image quality assurance, data compliance, capture hardware peripheral abstraction, centralized data processing and workflow, subsystem connectivity, and biometric matching algorithms. The products are used to enable identity-centric security solutions with biometrics for applications including border management, credentialing and access control, intelligence and defense, and law enforcement. Aware is a publicly held company (Nasdaq: AWRE) based in Bedford, Massachusetts.
