Aware, Inc. (NASDAQ: AWRE), Capitalizing on Biometric Technology

Aware, Inc. (NASDAQ: AWRE), Capitalizing on Biometric Technology

Biometric technologies are accepted and adopted in various civil and commercial applications. Emerging technologies such as keystroke dynamics, ear shape recognition, gait recognition, and many others have taken over the global biometric technology market. They are used at Point of Sale terminals, ATMs, and border security. Companies are looking for them because they reduce time spent on integration.

Biometrics is however widely viewed as one of the fastest-growing segment within the information technology sector. Experts say the sector could more than quadruple its revenues to $2 billion globally by 2013, with biometric recognition expected to remain the dominant form of the technology.

Companies in industries from healthcare to point of sale have capitalized not only in the value of biometric technology but also on the benefits of the revolutionary biometric solution. One of such companies is Aware Inc. (NASDAQ: AWRE). Operating out of Bedford Massachusetts, it is considered a leading software and technology supplier for biometrics, telecommunications, and healthcare industries.

Founded in 1986, its software products and services are provided to solution vendors and system integrators for use by government agencies for border management, secure credentials, law enforcement, and national defense. It also offers test and diagnostic software products that enable broadband service providers to manage their DSL networks.

The company has been successful in providing products and services for diverse markets. While the applications of its products are varied, there is unity in terms of functionality requirements and architecture. Its medical imaging software products enable the transport and viewing of diagnostic medical images like x-rays and CAT scans.  Customers use its diagnostic platform software to improve the quality of their IPTV service, reduce operational costs, and extend service reach.   Its assurance group offers test and diagnostics software and hardware products that enable wireless service providers manage their networks.

One unique thing about Aware Inc. occurred during its last quarterly report in 2012… The Board of Directors determined that the company’s current cash balance exceeded its capital requirements and therefore decided to return cash to shareholders through a special cash dividend of $1.80 per share, or approximately $400 million in total.

Like all companies, Aware has a number of competitors. Some of them are Lockheed Martin Corporation (NYSE: LMT), Advanced Micro Devices, Inc.(NYSE: AMD), Advanced Photonix, Inc. (NYSE: API), Advanced Semiconductor Engineering, Inc. (NYSE: ASX), and others. However, Aware is unique because its processing and analysis of digital data and image “signals” have applications in the telecommunications, biometrics, and medical imaging industries.

The company has a market capitalization of $149 million and trades around $6 per share, which means its valuation could increase as the biometric sector expands. So if you’re looking to gain from the expansion of the biometric sector in the next few years, consider Aware. Put it in your watch list. It just might prove to be the solid investment you have been hoping for. And if you’re lucky, you just might get a special dividend as well.