Aware, Inc. Declares Special Cash Dividend of $1.75 Per Share, or
Approximately $40 Million in Total
BEDFORD, Mass., June 26, 2014
BEDFORD, Mass., June 26, 2014 /PRNewswire/ --Aware, Inc. (NASDAQ: AWRE), a
leading supplier of biometrics software and services, today announced that its
Board of Directors has declared a special cash dividend of $1.75 per share, or
approximately $40 million in total. The special cash dividend will be paid on
July 24, 2014 to shareholders of record as of July 10, 2014.
The Board of Directors has determined that the company's current cash balances
exceed our capital requirements and has decided to return cash to
The federal income tax treatment of the special cash dividend will depend on
the amount of the company's current and accumulated earnings and profits as of
December 31, 2014, as determined by the Internal Revenue Code. We currently
estimate that for federal income tax purposes approximately 10% of the special
cash dividend will be treated as a dividend and that approximately 90% will be
treated as a return of capital and/or capital gain. We will notify
shareholders in early 2015 as to the actual amounts of each.
With respect to a share of company stock, (i) the amount treated as a dividend
for federal income tax purposes may be treated as qualified dividend income if
the shareholder satisfies certain requirements, and (ii) the amount of the
special cash dividend that is not treated as a dividend for federal income tax
purposes will be treated first as a return of capital to the extent of a
shareholder's adjusted tax basis in such share, and then as capital gain. We
encourage shareholders to consult their tax advisors to understand how this
special cash dividend may affect their tax obligations.
We also encourage shareholders to contact their brokers in order to understand
the Nasdaq Rules and Regulations regarding the effect of selling shares of our
common stock following the record date on their eligibility to receive the
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.
See Aware's website for more information about our biometrics software
Safe Harbor Warning
Portions of this release contain forward-looking statements regarding future
events and are subject to risks and uncertainties, such as the expected tax
treatment of the special cash dividend, estimates or projections of future
revenue and earnings, and the growth of the biometrics markets. Aware wishes
to caution you that there are factors that could cause actual results to
differ materially from the results indicated by such statements.
Risk factors related to our business and any of our forward-looking statements
include, but are not limited to: i) our operating results may fluctuate
significantly and are difficult to predict; ii) we derive a significant
portion of our revenue from government customers, and our business may be
adversely affected by changes in the contracting or fiscal policies of those
governmental entities; iii) we derive a significant portion of our revenue
from third party channel partners; iv) we face intense competition from other
biometrics solution providers; v) our business is subject to rapid
technological change; vi) our software products may have errors, defects or
bugs which could harm our business; vii) our business may be adversely
affected by our use of open source software; viii) our intellectual property
is subject to limited protection; ix) we may be sued by third parties for
alleged infringement of their proprietary rights; x) we must attract and
retain key personnel; xi) we rely on single sources of supply for certain
components used in our hardware products; xii) our business may be affected by
government regulations and adverse economic conditions; xiii) we may make
acquisitions that could adversely affect our results; and xiv) the tax
treatment of the special cash dividend will depend on our current and
accumulated earnings and profits as of December 31, 2014, which we will not
know until early 2015.
We refer you to the documents Aware files from time to time with the
Securities and Exchange Commission, specifically the section titled Risk
Factors in our annual report on Form 10-K for the fiscal year ended December
31, 2013 and other reports and filings made with the Securities and Exchange
Aware is a trademark or registered trademark of Aware, Inc.
Any other trademarks appearing herein are the property of their respective
SOURCE Aware, Inc.
Contact: Rick Moberg, Aware, Inc., 781-276-4000
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