MINNEAPOLIS, May 07, 2026 (GLOBE NEWSWIRE) -- Autoscope Technologies Corporation (OTCQX: AATC) today announced results for its quarter ended March 31, 2026. 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 28, 2026 to the shareholders of record at the close of business on May 21, 2026.
First Quarter 2026 Financial Summary
- Royalties were $2.1 million in the first quarter of 2026, consistent with $2.1 million in the same period in the prior year.
- Operating expenses were $1.7 million in the first quarter of 2026, unchanged from $1.7 million in the same period in the prior year.
- Net income was $0.3 million in the first quarter of 2026 compared to net income of $0.4 million in the same period in the prior year.
First-Quarter Results
Revenue from operations for Autoscope Technologies Corporation ("AATC" or the "Company"), which includes the results of Image Sensing Systems, Inc., a wholly owned subsidiary of AATC ("ISNS"), was $2.1 million in the first quarter of 2026, a 4 percent decrease from $2.2 million in the same period of 2025. Revenue from royalties was $2.1 million in the first quarter of 2026, consistent with $2.1 million in the first quarter of 2025. Product sales were $6,000 in the first quarter of 2026 compared to $67,000 in the first quarter of 2025. The decline in product sales is mainly attributable to lower sales related to Wrong Way detection products.
Operating expenses were $1.7 million in the first quarter of 2026, unchanged from $1.7 million in the same period of 2025.
Net income for the first quarter of 2026 was $0.3 million, or $0.06 per basic and diluted share, a 13 percent decrease compared to net income of $0.4 million, or $0.07 per basic and diluted share, in the prior year period. Net income decreased primarily due to decreased total revenue.
The cash balance increased to $1.0 million at March 31, 2026 compared to a cash balance of $0.7 million at December 31, 2025. The increase is mainly attributable to cash received on accounts receivable balances.
"Our first quarter results reflect a steady start to the year, with royalty performance holding consistent and channel demand stabilizing as expected," said Andy Markese, CEO of Autoscope Technologies and President and CEO of Image Sensing Systems. "We remain focused on driving the adoption of our OptiVu platform and enhancing its features to deliver greater value for our customers. Through disciplined expense management and a strengthening cash position, we believe the Company is well positioned for stronger performance as we move through 2026."
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 for Autoscope Technologies Corporation (the "Company," "Autoscope," "we," or "us" constitute "forward-looking statements." 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. These risks and uncertainties include, but are not limited to, factors listed below. New risks and uncertainties that may materially affect our operating results may emerge from time to time. It is not possible to predict all of these risks and uncertainties, nor can we assess the effect that each such risk or uncertainty, or a combination of them, may have on our business.
Those risks and uncertainties may include, but are not limited to: our ability to declare, fund and pay dividends in the future and to comply with applicable notice and processing requirements for corporate actions under the OTCQX Rules for U.S. Companies, including Rule 10b-17 under the Securities Exchange Act of 1934, as amended, and Financial Industry Regulatory Authority Rule 6490, as well as the discretion of our Board of Directors to modify, suspend or cancel any dividend program; 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; risks associated with the incorporation of artificial intelligence and machine learning technologies into our products, including but not limited to, any failures or flaws in such technologies that could result in product liability claims, reputational harm, or regulatory action; 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 costs tend to be fixed, while our revenue tends to be seasonal, thereby resulting in operating results that fluctuate from quarter to quarter; 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 geopolitical conflicts, regional hostilities, wars, and other international disruptions; 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.
You should carefully consider the above trends, risks and uncertainties before making any investment decision with respect to our securities. If any of them continues or occurs, our business, financial condition or operating results could be materially and adversely affected, the trading prices of our securities could decline, and you could lose part or all of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement. 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, except as required by applicable law.
| Contact: | Andrew Markese, CEO of AATC and President and CEO of ISNS |
| 612-438-2363 | |
| Autoscope Technologies Corporation Condensed Consolidated Statements of Operations (in thousands, except per share information) (unaudited) | |||||||
| Three-Month Periods Ended March 31, 2026 | |||||||
| 2026 | 2025 | ||||||
| Revenue: | |||||||
| Royalties | - | 2,104 | - | 2,126 | |||
| Product sales | 6 | 67 | |||||
| 2,110 | 2,193 | ||||||
| Cost of Revenue: | |||||||
| Royalties | 26 | - | |||||
| Product sales | 15 | 40 | |||||
| 41 | 40 | ||||||
| Gross profit | 2,069 | 2,153 | |||||
| Operating expenses: | |||||||
| Selling, general and administrative | 1,013 | 1,032 | |||||
| Research and development | 676 | 675 | |||||
| 1,689 | 1,707 | ||||||
| Income from operations | 380 | 446 | |||||
| Other income, net | 9 | 9 | |||||
| Investment income | 16 | 20 | |||||
| Interest expense | (15 | - | (16 | - | |||
| Income from operations before income taxes | 390 | 459 | |||||
| Income tax expense | 74 | 98 | |||||
| Net income | - | 316 | - | 361 | |||
| Net income per share: | |||||||
| Basic | - | 0.06 | - | 0.07 | |||
| Diluted | - | 0.06 | - | 0.07 | |||
| Weighted average number of common shares outstanding: | |||||||
| Basic | 5,503 | 5,476 | |||||
| Diluted | 5,506 | 5,489 | |||||
| Autoscope Technologies Corporation Condensed Consolidated Balance Sheets (in thousands) (unaudited) | |||||
| March 31, 2026 | December 31, | ||||
| (Unaudited) | 2025 | ||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | - | 1,042 | - | 735 | |
| Accounts receivable, net | 2,079 | 2,685 | |||
| Inventories | 2,117 | 2,117 | |||
| Investments in available-for-sale debt securities | 1,942 | 1,932 | |||
| Prepaid expenses and other current assets | 367 | 357 | |||
| Total current assets | 7,547 | 7,826 | |||
| Property and equipment, net | 1,925 | 1,954 | |||
| Intangible assets, net | 716 | 742 | |||
| Deferred income taxes | 1,436 | 1,502 | |||
| Operating lease asset, net | 27 | 29 | |||
| TOTAL ASSETS | - | 11,651 | - | 12,053 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | - | 69 | - | 44 | |
| Deferred revenue | 68 | 74 | |||
| Warranty and other current liabilities | 1,710 | 1,665 | |||
| Total current liabilities | 1,847 | 1,783 | |||
| Operating lease obligation | 18 | 20 | |||
| Shareholders' equity | 9,786 | 10,250 | |||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | - | 11,651 | - | 12,053 | |
| Autoscope Technologies Corporation. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) | |||||||
| Three-Month Periods Ended March 31, 2026 | |||||||
| 2026 | 2025 | ||||||
| Operating activities: | |||||||
| Net income | - | 316 | - | 361 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation | 46 | 45 | |||||
| Software amortization | 26 | 26 | |||||
| Amortization of debt issuance costs | - | 1 | |||||
| Stock-based compensation | 52 | 67 | |||||
| Deferred income tax expense | 66 | 93 | |||||
| Realized gain on AFS investments | (13 | - | (11 | - | |||
| Unrealized loss (gain) on equity investments | 1 | (1 | - | ||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable, net | 606 | 355 | |||||
| Inventories | - | 14 | |||||
| Prepaid expenses and other current assets | (11 | - | 22 | ||||
| Accounts payable | 25 | 89 | |||||
| Accrued expenses and other current liabilities | 55 | (109 | - | ||||
| Net cash provided by operating activities | 1,169 | 952 | |||||
| Investing activities: | |||||||
| Purchases of property and equipment | (17 | - | (110 | - | |||
| Purchases of debt securities | (614 | - | (387 | - | |||
| Sale of debt securities | 615 | 2,393 | |||||
| Net cash (used) provided by investing activities | (16 | - | 1,896 | ||||
| Financing activities: | |||||||
| Dividend paid | (826 | - | (6,577 | - | |||
| Principal payments on long-term debt | (16 | - | (16 | - | |||
| Net cash used by financing activities | (842 | - | (6,593 | - | |||
| Effect of exchange rate changes on cash | (4 | - | (1 | - | |||
| Change in cash and cash equivalents | 307 | (3,746 | - | ||||
| Cash and cash equivalents at beginning of period | 735 | 4,355 | |||||
| Cash and cash equivalents at end of period | - | 1,042 | - | 609 | |||
| Non-Cash investing and financing activities: | |||||||
| Cash paid for interest | - | 15 | - | 16 | |||
Autoscope Technologies Corporation
Non-GAAP Income from 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, 2026 | |||||
| 2026 | 2025 | ||||
| Income from operations | - | 380 | - | 446 | |
| Adjustments to reconcile to non-GAAP income | |||||
| Amortization of intangible assets | 26 | 26 | |||
| Depreciation | 46 | 45 | |||
| Non-GAAP income from operations | - | 452 | - | 517 | |
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.
