Image Sensing Systems Announces Fiscal Year 2000 Unaudited Earnings
Contacts:
Jeffrey F. Martin, Chief Financial Officer
Image Sensing Systems, Inc., Phone: 651.603.7700
Michael Murphy
Fitzgerald Advertising and Public Relations, Inc., Phone: 407-251-1020
Saint Paul, MN, February 9, 2001 - Image Sensing Systems, Inc. (NASDAQ/Small Cap: ISNS), a leading maker of video-based traffic management systems, announced today unaudited financial results for its fourth quarter and year ended December 31, 2000.
Revenues for the fourth quarter of 2000 increased 20 percent to $1,913,000 compared with $1,590,000 for the same period a year ago. The increase in revenue income for the fourth quarter was due primarily to increased sales from Image Sensing Systems’ Flow Traffic Limited subsidiary. A fourth quarter loss in 2000 was $.01, compared to earnings of $.15 in 1999.
Bill Russell, Chairman and CEO, commented, “ Financial results for the fourth quarter are not up to expectations and reflects the deferment of several projects into 2001, partly due to fluctuations in currency and partly due to delays in funds transfer. Our Asian subsidiary, Flow Traffic Ltd. exceeded expectations and our domestic partner, Econolite Control Products, Inc. had an excellent year. Our balance sheet remains strong and we will continue to invest in market development along with adding significantly to our product and system portfolio, which we expect will lead to a significant increase in operating earnings.”
Net loss for the year was $50,000 or $.02 per share, versus earnings of $251,000 or $.10 per share in 1999. The decrease from a year ago was due primarily to increased business development costs related to our international markets and new strategic relationship with Wireless Technology, Inc. Revenues for the year increased more than 26 percent to $6,063,600, compared with $4,772,000 a year ago. Royalty revenue decreased by 4 percent or $117,000, and direct sales increased by 88 percent, or $1,498,000, primarily from Asian subsidiary, Flow Traffic Limited. Operating costs increased by 16 percent, or $534,000, primarily due to stock dividend costs, product development and investment in increased worldwide sales and marketing infrastructure.
Mr. Russell added, “We have made substantial and critical strategic investments in the future of Image Sensing Systems principally during the past year, such as completion and successful launch of Autoscope Solo Pro, the new Autoscope Image Sensor?, and the addition of more than 70 wireless video and data transmission products from Wireless Technology, Inc. Our long-term vision for the company will ensure not only our ability to successfully and profitably compete in the transportation marketplace, but to expand the scope of the company into new international markets such as retail and industrial security, law enforcement and bank security. We are extremely happy with the progress of our expansion.“
Based in Saint Paul, Minnesota, Image Sensing Systems, Inc. is the world leader in products applying video imaging technology for implementation in advanced traffic management systems (ATMS), freeway incident detection and traffic data collection to help reduce traffic congestion and improve roadway planning. The company also offers a suite of products that provide wireless transmission of video, data and audio in a variety of markets. The Company’s cornerstone Autoscope products provide traffic managers the means to reduce roadway congestion, improve roadway planning and increase cost efficiencies. The Company is particularly suited to provide technical solutions to the emerging ITS market worldwide. imagesensing.com
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This report contains “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. There are certain factors that could cause results to differ materially from those anticipated by some of the statements made, as listed in the Company’s 2000 Annual Form 10-KSB.
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Three Month Period Ended December 31 (Dollars in thousands except per share amounts): |
|||
2000 |
1999 |
||
| Revenue | $1,913 |
$1,095 |
|
| Operating Income | 5 |
337 |
|
| Net Income | (43) |
362 |
|
| Minority Interest | (2) |
- |
|
| Net Income (loss) | (224) |
85 |
|
| Net Income per share | ||||
| Basic | ($0.01) |
$0.15 |
||
| Diluted | ($0.01) |
$0.14 |
||
|
Year Ended December 31 (Dollars in thousands except per share amounts): |
|||
2000 |
1999 |
||
| Revenue | $6,036 |
$4,772 |
|
| Operating Income | (203) |
169 |
|
| Net Income | (50) |
251 |
|
| Net Income per share | ||||
| Basic | ($0.02) |
$0.10 |
||
| Diluted | ($0.02) |
$0.10 |
||
| Weighted average shares outstanding | ||||
| Basic | 3,143,000 |
2,479,200 |
||
| Diluted | 3,143,000 |
2,551,200 |
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