MINNEAPOLIS, Nov. 06, 2025 (GLOBE NEWSWIRE) -- Autoscope Technologies Corporation (OTCQX: AATC) today announced results for its quarter and nine months ended September 30, 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 November 24, 2025 to the shareholders of record at the close of business on November 17, 2025.
Third Quarter 2025 Financial Summary
-- Royalties decreased 44 percent to $1.9 million in the third quarter of
2025 compared to $3.3 million in the same period in the prior year, due
to a drawdown of high inventory levels at our channel partners and as our
customers transition to our new Autoscope OptiVu platform.
-- Operating expenses were $1.6 million in the third quarter of 2025,
unchanged from $1.6 million in the same period in the prior year.
-- The Company reclassified $561,000 from Accumulated Other Comprehensive
Income/Loss to Loss on Closure of Foreign Subsidiaries. This amount is
non-cash and represents accumulated foreign currency adjustments related
to foreign subsidiaries that have been closed.
-- The Company recorded a net loss of $0.2 million in the third quarter of
2025 compared to net income of $1.3 million in the same period in the
prior year. The one-time non-cash foreign currency adjustment mentioned
above along with the decline in revenue accounted for the decline in net
income. Excluding the one-time adjustment, net of tax, net income was
$0.2 million.
-- Total cash and cash equivalents, coupled with available investments in
debt and equity securities increased to $2.7 million at September 30,
2025 compared to $2.6 million at the end of the second quarter of 2025.
First Nine Months of 2025 Financial Summary
-- Royalties decreased 33 percent in the first nine months of 2025 to $6.8
million compared to $10.2 million in the same period in the prior year,
due to a drawdown of high inventory levels at our channel partners and as
our customers transition to our new Autoscope OptiVu platform.
-- Operating expenses decreased 5 percent to $4.9 million in the first nine
months of 2025 compared to $5.2 million in the same period in the prior
year.
-- The Company recorded net income of $0.9 million in the first nine months
of 2025 compared to $3.7 million for the same period in the prior year.
The one-time non-cash foreign currency adjustment mentioned above along
with the decline in revenue accounted for the decline in net income.
Excluding the one-time adjustment, net of tax, net income was $1.4
million.
-- Total cash and cash equivalents, coupled with available investments in
debt and equity securities decreased to $2.7 million at September 30,
2025 compared to $7.4 at December 31, 2024. The decline is mainly
attributable to a special dividend that was paid in February 2025 in the
amount of $5.8 million.
Third-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 $1.9 million in the third quarter of 2025, a 45 percent decrease from $3.4 million in the same period of 2024. Revenue from royalties was $1.9 million in the third quarter of 2025, a 44 percent decrease from $3.3 million in the third quarter of 2024. The decline in revenue is mainly attributable to a drawdown of high inventory levels at our channel partners and as our customers transition to our new Autoscope OptiVu platform.
Operating expenses were $1.6 million in the third quarter of 2025, unchanged from $1.6 million in the same period of 2024.
During the third quarter of 2025, the Company initiated the closure of its Canada and Spain subsidiaries. The cumulative translation loss of $0.6 million previously recorded in Accumulated Other Comprehensive Loss was reclassified to earnings as Loss on Closure of Foreign Subsidiaries in the third quarter of 2025 as part of the loss on disposal. There was no comparable reclassification in the same period of 2024.
The Company reported a net loss for the third quarter of 2025 of $0.2 million, or $0.04 per basic and diluted share, compared to net income of $1.3 million, or $0.25 per basic share and $0.24 per diluted share, in the prior year period. The one-time non-cash foreign currency adjustment mentioned above along with the decline in revenue accounted for the decline in net income. Excluding the one-time adjustment, net of tax, net income was $0.2 million.
Year-to-Date Results
AATC's revenue for the first nine months of 2025 was $6.9 million, a 33 percent decrease from revenue of 10.3 million in the first nine months of 2024. Revenue from royalties decreased 33 percent to $6.8 million in the first nine months of 2025 compared to $10.2 million in the same period in 2024. Product sales were $113,000 in the first nine months of 2025, a 24 percent decrease from $148,000 in the first nine months of 2024. The decline in revenue is mainly attributable to a drawdown of high inventory levels at our channel partners and as our customers transition to our new Autoscope OptiVu platform.
Operating expenses decreased 5 percent to $4.9 million in the first nine months of 2025 compared to $5.2 million in the same period of 2024.
During the first nine months of 2025, the Company initiated the closure of its Canada and Spain subsidiaries. The cumulative translation loss of $0.6 million previously recorded in Accumulated Other Comprehensive Loss was reclassified to earnings as Loss on Closure of Foreign Subsidiaries in the first nine months of 2025 as part of the loss on disposal. There was no comparable reclassification in the same period of 2024.
The Company's net income for the first nine months of 2025 was $0.9 million, or $0.17 per basic and diluted share, compared to a net income of $3.7 million, or $0.69 per basic and diluted share, in the first nine months of 2024. The one-time non-cash foreign currency adjustment mentioned above along with the decline in revenue accounted for the decline in net income. Excluding the one-time adjustment, net of tax, net income was $1.4 million.
The cash balance decreased to $0.6 million at September 30, 2025 compared to a cash balance of $4.4 million at December 31, 2024. Total cash and cash equivalents, coupled with available investments in debt and equity securities decreased to $2.7 million at September 30, 2025 compared to $7.4 at December 31, 2024. The decline is mainly attributable to a special dividend that was paid in February 2025 in the amount of $5.8 million.
On a non-GAAP basis, excluding the amortization of intangible assets and depreciation for the applicable periods, operating income for the third quarter of 2025 was $0.3 million compared to $1.8 million in the prior year period and $2.0 million for the first nine months of 2025 compared to $5.1 million in the same period of 2024.
"The decline in royalty revenue this quarter reflects the transition from our legacy Autoscope Vision product to the new Autoscope OptiVu platform," said Andy Markese, Interim CEO of Autoscope Technologies and President and CEO of Image Sensing Systems. "As agencies complete their evaluations and procurement processes, we are seeing market adoption of OptiVu accelerate, while inventory levels among distributors are normalizing. With distributor stock depleted and the balance between demand and supply starting to equalize, we anticipate a return to more typical royalty performance in the fourth quarter."
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 Annual Report 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.
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