Aware
Annual Report 2005

Plain-text annual report

2005 ANNUAL REPORT A W A R E , I N C . A W A R E , I N C . A W A R E , I N C . The DSL industry has entered a new phase of deployments as telephone companies expand the reach of their service offerings to include data, voice, and television. HDTV over VDSL2 has become a near-term goal in several regions, marking the true transformation of phone companies into content providers. In 2005, our licensing business successfully launched customer chipsets based upon our StratiPHY2+TM ADSL2/2+ technology in France, where customers now receive high- speed Internet access and IPTV. In 2006, we expect StratiPHY3TM to benefi t from the rapid emergence of the VDSL2 standard, enabling much higher speeds and value-added services. In Germany, Deutsche Telekom has lined up an impressive offering of entertainment ser- vices, including HD broadcast of soccer games, using a 50Mbps VDSL2 network. There were 138.8 million DSL subscribers worldwide at the end of 2005, with Europe and Asia Pacifi c leading with market shares of 37% and 41% respectively1. The move by phone companies to value-added services is fueling a rapid transition to VDSL2. Forecasts for VDSL aggregation ports, the devices that deliver VDSL service from points in the phone company network, present an opportunity for exponential growth over the coming years2. The transition to new standards also forms the foundation for new opportunities for our DSL test and diagnostics hardware and software products. In response to rapid growth in new areas of biometrics, 2005 saw an increased demand for our software for biometric enrollment systems and electronic passport systems. 12005 Total Subscribers by Region ROW 6% North America 16% Asia Pacifi c 41% Europe 37% Source: Point Topic 2DSL Aggregation Ports (Annual Net Additions) VDSL ADSL 2005* 2006 2007 2008 2009 * 2005 Actual Source: Infonetics Research 02/06 Port Adds (in millions) 250 200 150 100 50 0 C o r p o r a t e I n f o r m a t i o n BOARD OF DIRECTORS LEGAL COUNSEL John K. Kerr Chairman of the Board Aware, Inc. Michael A. Tzannes, Ph.D. Chief Executive Offi cer Aware, Inc. Edmund C. Reiter, Ph.D. President Aware, Inc. Frederick D. D’Alessio General Partner Capitol Management Partners G. David Forney, Jr., Sc.D. Adjunct Professor, MIT Vice President (retired), Motorola, Inc. Adrian F. Kruse, C.P.A., J.D. Audit Partner (retired) Ernst & Young LLP OFFICERS Michael A. Tzannes, Ph.D. Chief Executive Offi cer Edmund C. Reiter, Ph.D. President Robert J. Weiskopf Chief Financial Offi cer Richard W. Gross, Ph.D. Senior Vice President Engineering Foley Hoag LLP Boston, MA INDEPENDENT ACCOUNTANTS PricewaterhouseCoopers LLP Boston, MA TRANSFER AGENT Computershare Trust Company N.A. PO Box 43078 Providence, RI 02940-3078 1-877-282-1168 www.computershare.com ANNUAL MEETING Wednesday, 10:00 a.m. May 24, 2006 Renaissance Bedford Hotel Bedford, MA STOCK LISTING NASDAQ: AWRE CORPORATE HEADQUARTERS 40 Middlesex Turnpike Bedford, MA 01730 (781) 276-4000 WEST COAST LOCATION 3685 Mt. Diablo Boulevard Lafayette, CA 94549 CONTACT INFORMATION Investor Relations Aware, Inc. 40 Middlesex Turnpike Bedford, MA 01730-1432 USA (781) 276-4000 www.aware.com A W A R E , I N C . 2 0 0 5 A N N U A L R E P O R T A W A R E , I N C . 2 0 0 5 A N N U A L R E P O R T A W A R E , I N C . A W A R E , I N C . The DSL industry has entered a new phase of deployments as telephone companies expand the reach of their service offerings to include data, voice, and television. HDTV over VDSL2 has become a near-term goal in several regions, marking the true transformation of phone companies into content providers. In 2005, our licensing business successfully launched customer chipsets based upon our StratiPHY2+TM ADSL2/2+ technology in France, where customers now receive high- speed Internet access and IPTV. In 2006, we expect StratiPHY3TM to benefi t from the rapid emergence of the VDSL2 standard, enabling much higher speeds and value-added services. In Germany, Deutsche Telekom has lined up an impressive offering of entertainment ser- vices, including HD broadcast of soccer games, using a 50Mbps VDSL2 network. There were 138.8 million DSL subscribers worldwide at the end of 2005, with Europe and Asia Pacifi c leading with market shares of 37% and 41% respectively1. The move by phone companies to value-added services is fueling a rapid transition to VDSL2. Forecasts for VDSL aggregation ports, the devices that deliver VDSL service from points in the phone company network, present an opportunity for exponential growth over the coming years2. The transition to new standards also forms the foundation for new opportunities for our DSL test and diagnostics hardware and software products. In response to rapid growth in new areas of biometrics, 2005 saw an increased demand for our software for biometric enrollment systems and electronic passport systems. 12005 Total Subscribers by Region ROW 6% North America 16% Asia Pacifi c 41% Europe 37% Source: Point Topic 2DSL Aggregation Ports (Annual Net Additions) VDSL ADSL 2005* 2006 2007 2008 2009 * 2005 Actual Source: Infonetics Research 02/06 Port Adds (in millions) 250 200 150 100 50 0 C o r p o r a t e I n f o r m a t i o n BOARD OF DIRECTORS LEGAL COUNSEL John K. Kerr Chairman of the Board Aware, Inc. Michael A. Tzannes, Ph.D. Chief Executive Offi cer Aware, Inc. Edmund C. Reiter, Ph.D. President Aware, Inc. Frederick D. D’Alessio General Partner Capitol Management Partners G. David Forney, Jr., Sc.D. Adjunct Professor, MIT Vice President (retired), Motorola, Inc. Adrian F. Kruse, C.P.A., J.D. Audit Partner (retired) Ernst & Young LLP OFFICERS Michael A. Tzannes, Ph.D. Chief Executive Offi cer Edmund C. Reiter, Ph.D. President Robert J. Weiskopf Chief Financial Offi cer Richard W. Gross, Ph.D. Senior Vice President Engineering Foley Hoag LLP Boston, MA INDEPENDENT ACCOUNTANTS PricewaterhouseCoopers LLP Boston, MA TRANSFER AGENT Computershare Trust Company N.A. PO Box 43078 Providence, RI 02940-3078 1-877-282-1168 www.computershare.com ANNUAL MEETING Wednesday, 10:00 a.m. May 24, 2006 Renaissance Bedford Hotel Bedford, MA STOCK LISTING NASDAQ: AWRE CORPORATE HEADQUARTERS 40 Middlesex Turnpike Bedford, MA 01730 (781) 276-4000 WEST COAST LOCATION 3685 Mt. Diablo Boulevard Lafayette, CA 94549 CONTACT INFORMATION Investor Relations Aware, Inc. 40 Middlesex Turnpike Bedford, MA 01730-1432 USA (781) 276-4000 www.aware.com A W A R E , I N C . 2 0 0 5 A N N U A L R E P O R T A W A R E , I N C . 2 0 0 5 A N N U A L R E P O R T 2005 ANNUAL REPORT A W A R E , I N C . 

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