The last 4 quarters have seen revenues decrease sequentially. If Aware was valued based on its operations this would be a scary trend. Presently, its fair to say the market gives no value for the revenue and profit of the company, so I do not think we have any downside here. Its still fair to ask why are revenues declining in steady fashion? Something is definitely wrong with biometrics. Since there is no mechanism for discussion we may never know whats happening. Based on the revenue trend, our expectation should be for revenue right around 5 MM$ and expense about 4MM$ - a fifth straight qtr of dropping revenue.
$1 Million operating earnings sounds about right for Q4/12.
Did you notice that the cost of product sales line has been eliminated as of Q3/2012? This line item was most likely costs related to the DSL hardware biz that was shuttered. It was a significant expense that seems to have ended: