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...

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