Author Topic: AWRE - Aware  (Read 3833 times)

whistlerbumps

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AWRE - Aware
« on: December 10, 2018, 07:47:14 AM »
Has anyone here looked at Aware (AWRE)?  Trading at $3.50 per share with ~$2.25 per share of net cash.  Company makes biometric software for government and commercial applications.  Historically they have mainly served the government which is a perpetual license business (thus very lumpy) but they have just announced their first commercial sale which is expected to be a SaaS business and a much larger potential market.  Investors may be missing this inflection because the company has no analysts, does not do earnings calls/conferences and the stock is not liquid.

Company has been a good steward of capital historically, paying 3 special dividends from 2012-14 and buying back ~8% of the stock since mid 2016 (no mean feat given liquidity constraints).   Seems like solid downside protection with the chance for material upside if the commercial business gains real traction.  Be interested if anyone has any thoughts.

« Last Edit: December 10, 2018, 12:26:30 PM by Parsad »


whistlerbumps

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Re: AWRE - Aware
« Reply #1 on: December 18, 2018, 08:13:23 AM »
Good interview with AWRE's VP of Marketing talking about the company's commercial potential and recent UK govt win.

https://findbiometrics.com/interview-aware-david-benini-knomi-fido-uaf-industry-trends-512110/

whistlerbumps

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Re: AWRE - Aware
« Reply #2 on: February 13, 2019, 12:25:08 PM »
Q4 results out and were pretty good.  Revenues up 32.6% y/y and the company noted the signing of other commercial licenses.  Commercial gaining traction has the potential to drive substantial upside to current results.  Net cash of $2.39 per share and ongoing government business should continue to provide solid downside support.

whistlerbumps

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Re: AWRE - Aware
« Reply #3 on: September 20, 2019, 11:04:31 AM »
AWRE announced a new CEO today.  Robert Eckel was formerly the CEO of Identity Solutions unit at competitor Idemia (~$700mln in revenue so much larger than AWRE) and had been a consultant at AWRE for the past few months. 

He received 200k options split into 4 tranche with strikes at the greater of $4.50 or market and then up $1 for each tranche until $7.50 or market.

For those to be in the money, the share price has to rally significantly from current levels. 


As Regional President for North America Identity and Security at Idemia/OT-Morpho, Bob oversaw a $700m business with over 3200 employees.
https://www.linkedin.com/in/roberteckel/
« Last Edit: September 20, 2019, 11:09:49 AM by whistlerbumps »

Foreign Tuffett

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Re: AWRE - Aware
« Reply #4 on: September 20, 2019, 12:31:16 PM »
AWRE announced a new CEO today.  Robert Eckel was formerly the CEO of Identity Solutions unit at competitor Idemia (~$700mln in revenue so much larger than AWRE) and had been a consultant at AWRE for the past few months. 

He received 200k options split into 4 tranche with strikes at the greater of $4.50 or market and then up $1 for each tranche until $7.50 or market.

For those to be in the money, the share price has to rally significantly from current levels. 


As Regional President for North America Identity and Security at Idemia/OT-Morpho, Bob oversaw a $700m business with over 3200 employees.
https://www.linkedin.com/in/roberteckel/

What's with the last CEO being demoted to Chief Legal Officer?

I see the company only did $3 million in rev last Q. What's the timeline on their strategy gaining traction? They've been doing biometrics for years, right? Why haven't they had success up to this point?

whistlerbumps

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Re: AWRE - Aware
« Reply #5 on: September 23, 2019, 07:48:34 AM »
Old CEO was previously general counsel so its really just him going back to his old role.  Robert Eckel ran a much bigger biometrics company and had been consulting for AWRE so I would bet that he offered to run it and the company jumped at the opportunity to add someone as accomplished as him and had to demote the current CEO to make room.

With regards to the business, the company has historically focused on selling perpetual licenses to government customers.  This was a decent business but is a somewhat limited market and is a lumpy revenue stream. 

Now that commercial biometrics is starting to move mainstream, they are looking to make inroads there with customers like major banks, healthcare providers etc.  This business would more likely be Biometrics-as-a-Service They had one success with a major latin american bank in 2018 but have not gained much traction there yet.  I will be that it will be Eckel's job to drive more commercial business.

The fact that the came to such a small company and has an incentive structure with options at such higher strike prices suggests to me that he is optimistic about AWRE's likelihood of success in this area.

Stuart D

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Re: AWRE - Aware
« Reply #6 on: October 04, 2019, 03:25:22 AM »
Thanks for posting, it's always nice seeing companies with fortress balance sheets & conservative capital allocators.

« Last Edit: October 04, 2019, 03:45:10 AM by Stuart D »