Aware, a supplier of biometrics software and services, has reported financial results for its third quarter ended September 30, 2018. Revenue for the third quarter of 2018 was $5.4 million, a decrease of 5% compared to $5.7 million in the same quarter last year. Operating income in the third quarter of 2018 was $1.1 million compared to $1.5 million in the third quarter of 2017.The firm said the decrease in revenue and operating income was primarily due to: i) a large imaging software license sale to a medical imaging customer in the third quarter of 2017 whereas there was no such sale in the current three month period; and ii) no royalty revenue in the third quarter of 2018. The decrease in revenue was partially offset by: i) a large biometrics software license sale to a large commercial customer in the third quarter of 2018; and ii) higher maintenance and services revenue in the third quarter of 2018. To a lesser extent, lower patent related income from an unaffiliated third party and higher total costs and expenses in the third quarter of 2018 also contributed to lower operating income.Net income in the third quarter of 2018 was $1.3 million, or $0.06 per diluted share, which compares to net income of $1.1 million, or $0.05 per diluted share, in the same period a year ago.Revenue for the first nine months of 2018 was $12.1 million, a decrease of 3% compared to $12.4 million in the same nine month period last year. Operating income for the first nine months of 2018 was $38,000 compared to operating income of $1.8 million in the same period last year. The decrease in revenue and operating income was primarily due to: i) a large imaging software license sale to a medical imaging customer in the first nine months of 2017 whereas there was no such sale in the first nine months of 2018; and ii) no royalty revenue in the first nine months of 2018. The decrease in revenue was partially offset by: i) a large biometrics software license sale to a large commercial customer in the third quarter of 2018; and ii) higher maintenance and services revenue in the first nine months of 2018. In addition to the above, lower patent related income from an unaffiliated third party in the first nine months of 2018 also contributed to lower operating income.Net income for the first nine months of 2018 was $0.6 million, or $0.03 per diluted share, which compares to net income of $1.6 million, or $0.07 per diluted share, in the same period a year ago.Kevin Russell, Aware's chief executive officer and president, said, “Our financial performance in the third quarter represented our strongest quarter year-to-date. Revenue was lifted by a large license sale of our Knomi™ mobile biometric authentication solution to a large commercial customer as well as our continuing work under the United Kingdom Government biometric matching platform project. We are pleased with the level of interest we are receiving for our Knomi solution. We will continue to make investments in product and business development to enhance our opportunities in the government and commercial markets.”
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