Aware, Inc. reported a significant decline in revenue for the three months ended September 30, 2024, generating $3.8 million compared to $6.4 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue was $12.6 million, down from $13.9 million in the prior year. The decrease in revenue was primarily attributed to a 73% drop in software license revenue, which fell to $1.2 million from $4.4 million year-over-year. Conversely, software maintenance revenue increased by 19% to $2.3 million, reflecting a shift in the company's revenue composition.
The company reported an operating loss of $1.5 million for the third quarter of 2024, a stark contrast to the operating income of $0.7 million recorded in the same quarter of 2023. For the nine-month period, the operating loss remained consistent at $4.1 million. The net loss for the third quarter was $1.2 million, compared to a net income of $1.1 million in the previous year. The nine-month net loss also increased slightly to $3.2 million from $3.1 million.
Total current assets decreased to $33.8 million as of September 30, 2024, down from $35.8 million at the end of 2023. However, cash and cash equivalents rose to $11.2 million, up from $10.0 million. The company’s total assets decreased to $43.7 million, while total stockholders’ equity fell to $31.9 million, reflecting an increase in the accumulated deficit to $(68.8 million).
In terms of strategic developments, Aware, Inc. has implemented cost-control measures, including a 10% reduction in headcount, which contributed to a decrease in operating expenses by $0.3 million. The company also announced the resignation of CEO Robert Eckel, effective December 31, 2024, and anticipates incurring approximately $0.9 million in general and administrative expenses related to this transition in the fourth quarter of 2024.
The company has been actively managing its stock repurchase program, having repurchased $1.8 million of its common stock under a plan that allows for up to $10 million in repurchases, extended through December 31, 2025. However, no shares were purchased during the third quarter of 2024, contrasting with the previous year when 81,083 shares were repurchased in the same period.
Overall, Aware, Inc. continues to navigate a challenging market environment, with a focus on restructuring and cost management to improve its financial performance.
About AWARE INC /MA/
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