Liu Capital
Long/short equity, special situations, long-term horizon

Aware Inc: Strong Earnings Masked By Discontinued Operations

Aware (NASDAQ:AWRE) is a leading supplier of innovative signal processing and digital communications technology for imaging and telecommunications applications since the early 1990s.

Today, the company has two active business operations are focused on: 1) biometrics and imaging software and services and 2) Digital Subscriber Line ("DSL") service assurance software and services.

The thesis for this investment is simple:

1) The company's strong Biometrics business is being overshadowed by its unprofitable DSL business

2) Catalyst: Board and Management have taken steps to shutdown the unprofitable DSL business and reveal the true underlying value of the biometrics business

Strong Biometrics Business

Aware's biometrics segment is a strong and growing business that's expected to earn around $6.5 million in free...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details