MINNEAPOLIS, May 08, 2025 (GLOBE NEWSWIRE) --
Autoscope Technologies Corporation ("AATC" or the "Company") (OTCQX: AATC) today announced results for its quarter ended March 31, 2025. The Board of Directors has authorized and declared a quarterly cash dividend of $0.15 per share of its common stock. The dividend is payable on May 27, 2025 to the shareholders of record at the close of business on May 19, 2025.
The Company also announced today that its Board of Directors will be holding the 2025 Annual Meeting of Shareholders on Thursday, June 5, 2025, at 10:00 a.m. Central Daylight Time. The annual meeting will be a completely virtual meeting of shareholders, which will be conducted via the Internet. The Board of Directors has fixed the close of business on April 21, 2025 as the record date for the determination of shareholders entitled to notice of and to vote at the annual meeting. Delivery of the proxy materials will be over the Internet. A Notice of Internet Availability of Proxy Materials has been made available to shareholders. The proxy statement, proxy card, and information about the annual meeting are available in the Disclosure section under Autoscope's profile on the OTCQX at https://www.otcmarkets.com/stock/AATC/disclosure, as well as in the Financial Information section of Autoscope's website at https://autoscope.com/financial-information.html.
First Quarter 2025 Financial Summary
- Royalties decreased 32 percent to $2.1 million in the first quarter of 2025 compared to $3.1 million in the same period in the prior year.
- Operating expenses decreased 9 percent to $1.7 million in the first quarter of 2025 compared to $1.9 million in the same period in the prior year.
- Income from operations decreased 60 percent to $0.4 million in the first quarter of 2025 compared to $1.1 million in the same period in the prior year.
- Net income decreased 58 percent to $0.4 million in the first quarter of 2025 compared to $0.9 million in the same period in the prior year.
First-Quarter Results
Revenue from operations for the Company, which includes the results of Image Sensing Systems, Inc., a wholly owned subsidiary of AATC ("ISNS"), was $2.2 million in the first quarter of 2025, a 30 percent decrease from $3.1 million in the same period of 2024. Revenue from royalties was $2.1 million in the first quarter of 2025 compared to $3.1 million in the first quarter of 2024, a 32 percent decrease. The decrease in royalties was due to the timing and variability of sales and economic uncertainties during the quarter, which delayed budget approval cycles. Product sales were $67,000 in the first quarter of 2025 compared to $16,000 in the first quarter of 2024, a 319 percent increase. The increase in product sales was primarily due to increased sales of our Wrong Way product and sales of our Autoscope Analytics product in the first quarter of 2025, which had no sales in the first quarter of 2024 given the product was not launched until the third quarter of 2024.
Gross margin for the first quarter of 2025 was 98 percent, a 2-percentage point increase from a gross margin of 96 percent for the same period in 2024. Royalty gross margin for the first quarter of 2025 was 100 percent compared to 97 percent in the same period in 2024. The increase in royalty gross margin percentage for the first quarter of 2025 was primarily due to lower product amortization costs associated with capitalized software development relating to Autoscope Vision which became fully amortized at the end of the third quarter of 2024. As a percentage of revenue, product sales gross margins increased from a negative (94) percent in the first quarter of 2024 to 40 percent in the first quarter of 2025. The increase in the product sales gross margin percentage was the result of higher sales and the amortization of costs associated with capitalized software development, which are fixed.
Operating expenses decreased 9 percent to $1.7 million for the first quarter of 2025 compared to $1.9 million in the first quarter of 2024. The decrease in operating expenses was primarily due to decreased salaries and benefits due to decreased headcount, partially offset by increased consulting fees related to sustaining Autoscope Vision.
The Company recognized a tax expense of $98,000 in the first quarter of 2025, compared to a tax expense of $263,000 in the same prior year period. The decreased tax expense was primarily due to the lower pre-tax income from operations.
The Company reported net income for the first quarter of 2025 of $0.4 million, or $0.07 per basic and diluted share, compared to a net income of $0.9 million, or $0.16 per basic and diluted share in the prior year period. This decrease was primarily due to decreased royalty revenues, partially offset by decreased operating expenses.
Liquidity and Capital Resources
As of March 31, 2025, we had $0.6 million in cash and cash equivalents compared to $4.4 million on December 31, 2024. The decrease in cash and cash equivalents during the first three months of 2025 was due mainly to the special dividend paid in February 2025.
Net cash provided by operating activities was $1.0 million in the first three months of 2025 compared to net cash used by operating activities of $34,000 in the same period in 2024. Net cash provided by operating activities increased in the first three months of 2025 compared to the same period in 2024 primarily due to decreased cash used for accounts payable and decreased accounts receivable. Cash used for accounts payable in the first quarter of 2024 related to inventory purchases made during the fourth quarter of 2023, and no large inventory purchases were made during the first quarter of 2025 or 2024.
Net cash provided by investing activities was $1.9 million in the first three months of 2025 compared to net cash provided by investing activities of $3.1 million in the same period in 2024. The decrease in net cash provided by investing activities in the first three months of 2025 compared to the same period in the prior year was primarily the net result of sales and purchases of debt securities previously purchased as investments. Sales of debt securities were $2.4 million in the first three months of 2025 compared to $5.7 million in the first three months of 2024. Purchases of debt securities were $0.4 million in the first three months of 2025 compared to $2.6 million in the first three months of 2024. Proceeds from the sale of debt securities during the first three months of 2025 and 2024 were used to fund the special dividend payments in their respective periods. Cash used for purchases of property and equipment increased during the first three months of 2025 compared to the same period in 2024 due to payments made for assets relating to Autoscope Analytics.
Net cash used by financing activities was $6.6 million in the first three months of 2025 compared to net cash used by financing activities of $7.9 million in the first three months of 2024. The decrease in net cash used for financing activities in the first three months of 2025 was primarily due to a lower special dividend paid in 2025 compared to 2024, partially offset by a higher quarterly dividend. In 2025, the Company paid a special dividend of $1.05 per share compared to a special dividend of $1.32 per share in 2024. The Company paid a quarterly dividend of $0.15 per share in the first quarter of 2025 compared to $0.13 per share in the first quarter of 2024.
"With our continued focus on operational efficiency and the launch of Autoscope Analytics last year, we remain committed to disciplined execution and long-term value creation. We are encouraged by the increasing engagement of communities aiming to analyze roadway behavior to improve safety and mitigate risk," said Andy Markese, Interim CEO of Autoscope Technologies and President and CEO of Image Sensing Systems. "While we anticipated a decrease in royalty revenue year over year for the quarter, economic uncertainties added slightly to the decline in our first quarter revenue results. We currently believe these uncertainties will have a minimal impact on the balance of the year," concluded Mr. Markese.
About Autoscope Technologies Corporation
Autoscope Technologies Corporation is a global company dedicated to helping improve safety and efficiency for cities and highways by developing and delivering above-ground detection technology, applications and solutions. We give Intelligent Transportation Systems (ITS) professionals more precise and accurate information - including real-time reaction capabilities and in-depth analytics - to make more confident and proactive decisions. We are headquartered in Minneapolis, Minnesota. Visit us on the web at www.autoscope.com.
Forward-Looking Statements
Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange of 1934, as amended. Forward-looking statements represent our expectations or beliefs concerning future events and can be identified by the use of forward-looking words such as "believes," "may," "will," "should," "intends," "plans," "estimates," "expects," "anticipates" or other comparable terminology. Forward-looking statements are subject to risks and uncertainties that may cause our actual results to differ materially from the results discussed in the forward-looking statements. Some factors that might cause these differences include the factors listed below. Although we have attempted to list these factors comprehensively, we wish to caution investors that other factors may prove to be important in the future and may affect our operating results. New factors may emerge from time to time, and it is not possible to predict all of these factors, nor can we assess the effect each factor or combination of factors may have on our business.
Those risks and uncertainties may include, but are not limited to, our historical dependence on a single product for most of our revenue; competition; potential changes in government spending on transportation technology; acceptance of our product offerings and designs; budget constraints by governmental entities that purchase our products, including constraints caused by declining tax revenue; the continuing ability of Econolite Control Products, Inc. to sell our products and pay royalties owed to us; the mix of and margins on the products we sell; our dependence on third parties for manufacturing and marketing our products; our dependence on single-source suppliers to meet manufacturing needs; our failure to secure adequate protection for our intellectual property rights; our inability to develop new applications and product enhancements; the potential disruptive effect on the markets we serve of new and emerging technologies and applications, including vehicle-to-vehicle communications and autonomous vehicles; unanticipated delays, costs and expenses inherent in the development and marketing of new products; our inability to respond to low-cost local competitors; our inability to properly manage any growth in revenue and/or production requirements; the influence over our voting stock by affiliates; our inability to hire and retain key scientific and technical personnel; the effects of legal matters in which we may become involved; our inability to achieve and maintain effective internal controls; our inability to successfully integrate any acquisitions; tariffs and other trade barriers; our operating results fluctuate from quarter to quarter due to, among other reasons, the fact that our operating costs tend to be fixed, while our revenue tends to be seasonal; any significant variations between actual amounts and the amounts estimated for those matters identified as our critical accounting estimates and other significant accounting estimates made in the preparation of our financial statements; political and economic instability, including continuing volatility in the economic and political environment of the European Union, the war in Ukraine, the conflict between Israel and Hamas and other disruptions in the Middle East; our inability to comply with international regulatory restrictions over hazardous substances and electronic waste; the impact of international supply chain disruptions and delays; the impact of changes in U.S. federal and state income tax regulations; the impact of inflation and our ability to pass on rising prices to its customers; and conditions beyond our control such as war, terrorist attacks, health epidemics (including the COVID-19 pandemic caused by the coronavirus) and economic recession.
We further caution you not to unduly rely on any forward-looking statements because they reflect our views only as of the date the statements were made. We undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
| Autoscope Technologies Corporation Condensed Consolidated Statements of Operations (in thousands, except per share information) (unaudited) | |||||||
| Three-Month Periods Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Revenue | |||||||
| Royalties | $ | 2,126 | $ | 3,121 | |||
| Product sales | 67 | 16 | |||||
| 2,193 | 3,137 | ||||||
| Cost of revenue | 40 | 136 | |||||
| Gross profit | 2,153 | 3,001 | |||||
| 98 | % | 96 | % | ||||
| Operating expenses | |||||||
| Selling, general and administrative | 1,032 | 1,263 | |||||
| Research and development | 675 | 610 | |||||
| 1,707 | 1,873 | ||||||
| Income from operations | 446 | 1,128 | |||||
| Other income | 9 | 9 | |||||
| Investment income | 20 | (5 | ) | ||||
| Interest expense, net | (16 | ) | (17 | ) | |||
| Income before income taxes | 459 | 1,115 | |||||
| Income tax expense | 98 | 263 | |||||
| Net income | 361 | 852 | |||||
| Net income per share, basic | $ | 0.07 | $ | 0.16 | |||
| Net income per share, diluted | $ | 0.07 | $ | 0.16 | |||
| Weighted shares - basic | 5,476 | 5,412 | |||||
| Weighted shares - diluted | 5,489 | 5,419 | |||||
| Autoscope Technologies Corporation Condensed Consolidated Balance Sheets (in thousands) (unaudited) | |||||||
| March 31, 2025 | December 31, 2024 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 609 | $ | 4,355 | |||
| Receivables, net | 3,709 | 4,064 | |||||
| Inventories | 2,703 | 2,717 | |||||
| Investment in debt and equity securities | 1,097 | 3,091 | |||||
| Prepaid expenses and other current assets | 371 | 393 | |||||
| 8,489 | 14,620 | ||||||
| Property and equipment, net | 2,124 | 2,060 | |||||
| Intangible assets, net | 549 | 575 | |||||
| Deferred taxes | 1,816 | 1,908 | |||||
| Operating lease asset, net | 8 | 10 | |||||
| $ | 12,986 | $ | 19,173 | ||||
| Liabilities and Shareholders' Equity | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 115 | $ | 27 | |||
| Current maturities on long-term debt | 63 | 63 | |||||
| Warranty and other current liabilities | 348 | 457 | |||||
| 526 | 547 | ||||||
| Non-Current liabilities | |||||||
| Long-term debt, net of current liabilities | 1,477 | 1,493 | |||||
| Shareholders' equity | 10,983 | 17,133 | |||||
| $ | 12,986 | $ | 19,173 | ||||
| Autoscope Technologies Corporation. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) | |||||||
| Three-Month Periods Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Operating activities | |||||||
| Net income | $ | 361 | $ | 852 | |||
| Adjustments to reconcile net income to net cash | |||||||
| provided by operating activities | |||||||
| Depreciation and amortization | 71 | 158 | |||||
| Stock-based compensation | 67 | 33 | |||||
| Loss on disposal of assets | - | 1 | |||||
| Investment amortization | - | 73 | |||||
| Realized gain on available for sale investments | (11 | ) | - | ||||
| Unrealized loss on available for sale investments | - | 1 | |||||
| Unrealized gain on equity investments | (1 | ) | - | ||||
| Amortization of debt issuance costs | 1 | 1 | |||||
| Deferred income tax expense | 93 | 261 | |||||
| Changes in operating assets and liabilities | 371 | (1,414 | ) | ||||
| Net cash provided by operating activities | 952 | (34 | ) | ||||
| Investing activities | |||||||
| Purchases of property and equipment | (110 | ) | (20 | ) | |||
| Sale of securities | 2,393 | 5,733 | |||||
| Purchase of securities | (387 | ) | (2,648 | ) | |||
| Net cash provided by investing activities | 1,896 | 3,065 | |||||
| Financing activities | |||||||
| Dividends paid | (6,577 | ) | (7,898 | ) | |||
| Principal payments on long-term debt | (16 | ) | (16 | ) | |||
| Net cash used by financing activities | (6,593 | ) | (7,914 | ) | |||
| Effect of exchange rate changes on cash | (1 | ) | (25 | ) | |||
| Decrease in cash and cash equivalents | (3,746 | ) | (4,908 | ) | |||
| Cash and cash equivalents at beginning of period | 4,355 | 6,506 | |||||
| Cash and cash equivalents at end of period | $ | 609 | $ | 1,598 | |||
| Non-Cash investing activities: | |||||||
| Cash paid for interest | 16 | 17 | |||||
Autoscope Technologies Corporation
Non-GAAP Income from Continuing Operations
(in thousands)
(unaudited)
We define non-GAAP income from operations as income from operations before amortization of intangible assets, depreciation, and restructuring charges for the applicable periods. Management believes non-GAAP income from operations is a useful indicator of our financial performance and our ability to generate cash flows from operations. Our definition of non-GAAP income from operations may not be comparable to similarly titled definitions used by other companies. The table below reconciles non-GAAP income from operations, which is a non-GAAP financial measure, to comparable GAAP financial measures:
| Three-Month Periods Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Income from operations | $ | 446 | $ | 1,128 | |||
| Amortization of intangible assets | 26 | 131 | |||||
| Depreciation | 45 | 27 | |||||
| Non-GAAP income from operations | $ | 517 | $ | 1,286 | |||
Note - Our calculation of non-GAAP income from operations is considered a non-GAAP financial measure and is not in accordance with, or preferable to, "as reported", or GAAP financial data. However, we are providing this information, as we believe it facilitates analysis of the Company's financial performance by investors and financial analysts.
| Contact: | Andrew Markese, Interim CEO of AATC and President and CEO of ISNS |
| 612-438-2363 |
