John Basler

Asked a series of questions covering the increase in G&A expenses, the change in sales pipeline volume compared to the previous quarter, customer and revenue retention rates, recent RFP outcomes, and the company's M&A strategy.

Answer

The CFO attributed the G&A increase to one-time events and performance-based stock options, noting R&D and S&M costs will rise with investments. The CRO stated the pipeline value and volume accelerated significantly in Q2, exceeding expectations. Customer retention rates are stable and consistent with prior years. The company is active in many competitive bids but does not comment on specific wins or losses. The CEO clarified the current focus is on internal execution and organic growth, not M&A, as they feel their product suite is complete.

John Basler of Basler Capital Partners, LLC asked a series of questions regarding Aware's financial and operational performance, focusing on the year-over-year increase in G&A expenses, the growth of the sales pipeline versus the prior quarter, current customer and revenue retention rates, recent RFP outcomes, and the company's M&A strategy.

Answer

CFO David Traverse attributed the G&A increase to timing, one-time events, and stock-based compensation for the new CEO. CRO Brian Krause confirmed that the sales pipeline's volume and value accelerated significantly in Q2, exceeding expectations, and noted that retention rates are consistent with prior years. Krause declined to comment on specific RFP wins or losses but expressed confidence in competitive situations. CEO Ajay K. Amlani stated that the company's current focus is on organic growth and internal execution, not M&A, as there are no immediate gaps in their product suite.