Image Sensing Systems Announces Fourth Quarter Results
Contact:
Art Bourgeois, Chief Financial Officer
Image Sensing Systems, Inc. Phone: 651.603.7700
Saint Paul, MN, January 29, 1997 - Image Sensing Systems, Inc. (NASDAQ/Small Cap: ISNS) a maker of video-based traffic management systems, announced today financial results for its fourth fiscal quarter ended December 31, 1996.
Revenues for the fourth quarter were $987,000, up 6% from $930,000 for the same period a year ago. Net income for the fourth quarter was $86,000 or $.03 per share versus a net loss of $323,000 or $.13 per share for the comparable period in 1995. The increase in revenues for the quarter was due primarily to added sales of Autoscope® systems, the Company’s cornerstone product, by ISS’s North American distribution partner. The increase in earnings for the quarter was due primarily to increased revenues and decreased marketing and product development costs compared to the fourth quarter in 1995.
Revenues for the year ended December 31, 1996 were $3,192,000, up 11% from $2,863,000 a year ago. The higher revenues were primarily due to increases in contract fees from development grants compared to 1995. The net loss for the year was $1,038,000 or $.42 per share versus $436,000 or $.21 per share in 1995. The earnings decline was due primarily to increased investments in sales and marketing and new product development.
Dr. Spiro G. Voglis, President and Chief Executive Officer, said, "Fourth quarter results were better than expected. Revenues from royalties increased 47% over the fourth quarter of 1995, offset in part by decreased contract fees as we finished a large contract. Operating costs were less in the fourth quarter of 1996 compared to 1995 as we focused our sales and marketing activities in areas that have proven to be productive and slowed product development efforts. We ended the year with the first profitable quarter since the public offering in May 1995 and have orders in hand that should produce a profitable first quarter in 1997. We are in excellent financial condition with nearly $1.7 million in cash." Dr. Voglis added that "1996 proved to be a challenging year as we struggled with some technical problems during the middle part of the year. But our efforts were not in vain as one of the customers having technical problems ordered 74 Autoscopes , of which 31 were delivered in November, while the second customer has indicated that they plan on adding video detection for 60 more miles of freeway. We believe 1997 will be a profitable year if we continue to gain acceptance of our machine vision technology and we successfully negotiate and complete a contract which calls for shipping $560,000 of product in the fall of 1997. We all look forward to the challenge."
ISS develops and markets products using video image processing technology for use in advanced traffic management systems and traffic data collection to reduce congestion and improve roadway planning. Also known as machine vision or artificial vision, video image processing uses video cameras and computers to emulate the function of the human eye and is used in a variety of industrial applications. ISS has combined its proprietary machine vision technology, consisting of complex algorithms, software, and special purpose hardware, with commercially available computer hardware and video cameras to create a system that collects, processes, and analyzes video images.
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Three Month Period Ended December 31, 1996 and 1995 (Dollars in thousands except per share amounts): |
|||
1996 |
1995 |
||
| Revenue | $987
|
$930
|
|
| Operating Income | 65 |
(471) |
|
| Net Income | 86 |
(323) |
|
| Net Income per share - basic and diluted | $0.03 |
($0.13) |
|
| Weighted average number of common shares and common share equivalents outstanding | 2,475,000 | 2,475,000 | |
|
Year Ended December 31, 1996 and 1995 (Dollars in thousands except per share amounts): |
|||
1996 |
1995 |
||
| Revenue | $3,192
|
$2,863
|
|
| Operating Income | (1,148) |
(703) |
|
| Net Income | (1,038) |
(436) |
|
| Net Income per share-basic and diluted | ($0.42) |
($0.21) |
|
| Weighted average number of common shares and common share equivalents outstanding | 2,475,000 | 2,114,000 | |
