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Lower Revenue Widens Aware's Loss

Lower product sales volumes hurt the company's revenue results in the first quarter.

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On May 05, 2009,


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reported that its Q1 FY09 net loss widened hurt by lower revenue. Net loss for the latest first quarter increased to $2.13 million or $0.09 per share from $1.28 million or $0.05 per share in Q1 FY08. However, excluding stock-based compensation of $400,000, net loss was $1.74 million or $0.07 per share.

Total revenue dropped 22.2% to $4.57 million from $5.88 million a year ago, hurt by lower product sales revenue. Revenue from Product sales slipped 28.2% to $2.82 million from $3.92 million, while Royalties revenue edged up 10.7% to $477,000 from $431,000. Contract revenue fell 16.0% to $1.28 million from $1.52 million. Cost of product sales dipped 37.7% to $513,000, whereas cost of contract revenue declined 10.8% to $908,000. Research and development expenses fell 11.8% to $3.11 million, while selling and marketing expenses rose 11.6% to $1.08 million, and general and administrative expenses grew 1.7% to $1.21 million. Consequently, AWRE's operating margin deteriorated to a negative 49.27% compared to a negative 28.18% a year ago.

Recently, the company announced the final results of its modified Dutch Auction tender offer according to which the company has accepted for purchase 3,500,252 shares of its common stock (including the associated preferred share purchase rights) at a purchase price of $2.50 per share, for a total cost of $8,750,630 (excluding fees and expenses relating to the tender offer).