Autoscope Technologies Corporation Announces Preliminary Unaudited Fourth Quarter 2022 and First Quarter 2023 Sales
Minneapolis, Minn., April 17, 2023 -- Autoscope Technologies Corporation (OTCQX:AATC) today announced an update on recent unaudited financial results.
Fourth Quarter 2022 Financial Summary:
- Royalties were $2.4 million, an increase of 34 percent from the same period in the prior year
- Product sales were $1.3 million, a decrease of 9 percent from the same period in the prior year
The 2022 fourth quarter revenue for Autoscope Technologies Corporation ("AATC" or the "Company"), which includes the results of Image Sensing Systems, Inc., a wholly owned subsidiary of AATC, was $3.7 million compared to $3.2 million in the fourth quarter of 2021. Revenue from royalties was $2.4 million in the fourth quarter of 2022 compared to $1.8 million in the fourth quarter of 2021, a 34 percent increase. The increase in royalties resulted primarily from the increased availability of components to fulfill the sales order backlog during the quarter. Product sales were $1.3 million in the 2022 fourth quarter compared to $1.4 million in the fourth quarter of 2021, a 9 percent decrease. The decrease in product sales was primarily due to the release of the Company’s new and more advanced video detection platform IntelliSight, which resulted in an expected decline in sales of the Company’s legacy video detection product sold in the European, Middle East, and Asian Pacific (“EMEA”) markets.
First Quarter 2023 Financial Summary:
- Royalties were $3.0 million, an increase of 65 percent from the same period in the prior year
- Product sales were $0.8 million, a decrease of 14 percent from the same period in the prior year
The 2023 first quarter revenue for the Company was $3.8 million compared to $2.8 million in first quarter of 2022. Revenue from royalties was $3.0 million in the first quarter of 2023 compared to $1.8 million in the first quarter of 2022, a 65 percent increase. The increase in royalties resulted from continued availability of components to fulfill the sales order backlog and an increase in demand for the Company’s video detection product. Product sales were $0.8 million in the first quarter of 2023 compared to $0.9 million in the first quarter of 2022, a 14 percent decrease. The decrease in product sales was primarily due to the rescheduling of orders to the second quarter of 2023 to meet customer installation requirements and to the expected decline of the Company’s legacy video detection product sold in the EMEA markets. The Company expects IntelliSight sales to increase during the second half of 2023 as product development is nearing completion and customer qualification efforts are increasing.
Audit Update
The delay in reporting the Company’s year-end financials is principally due to the Company’s transition from Nasdaq to the OTCQX and delays in completing the audit work. These delays are primarily due to turnover and labor shortages at both AATC and our audit firm. At this time, we are not aware of any material changes to our financial statements and are not aware of any internal control or other issues that would impact our audited financial statements or opinion. The Company is currently providing the relevant information requested by the auditor and will work with the auditors to complete the audit. We expect the audit to be concluded by mid-May 2023.
Dividend Update
The Company intends to declare both the first quarter and second quarter dividend payments upon the conclusion of the audit process. We anticipate both dividends to be paid concurrently, consistent with the historic timeline of the second quarter dividend payment schedule.
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 autoscope.com.
Safe Harbor Statement: Statements made in this release concerning the Company’s or management’s intentions, expectations, or predictions about future results or events are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect management’s current expectations or beliefs and are subject to risks and uncertainties that could cause actual results or events to vary from stated expectations, which variations could be material and adverse. Factors that could produce such a variation include, but are not limited to, the following: the inherent unreliability of earnings, revenue and cash flow predictions due to numerous factors, many of which are beyond the Company’s control; developments in the demand for the Company’s products and services; relationships with the Company’s major customers and suppliers; the mix of and margins on the products we sell; unanticipated delays, costs and expenses inherent in the development and marketing of new products and services; adverse weather conditions in our markets; the impact of governmental laws, regulations, and orders, including as a result of the COVID-19 pandemic caused by the coronavirus; international presence; tariffs and other trade barriers; our success in integrating any acquisitions; potential disruptions to our supply chains (including disruptions caused by geopolitical events, military actions, work stoppages, nature disasters, or international health emergencies, such as the COVID-19 pandemic); and competitive factors. Our forward-looking statements speak only as of the time made, and we assume no obligation to publicly update any such statements. Additional information concerning these and other factors that could cause actual results and events to differ materially from the Company’s current expectations are contained in the Company’s reports and other documents filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2021, filed on March 22, 2022.