Image Sensing’s 2013 second quarter revenue was $7.5 million, a 30 percent increase from revenue of $5.7 million in the second quarter of 2012. Revenue from royalties was $3.2 million in the quarter, compared to $3.0 million in second quarter of 2012, and product sales were $4.3 million in the quarter, including $2.9 million of worldwide Autoscope® License Plate Recognition (LPR) products. Autoscope Radar product sales and royalties were $377,000 and $465,000, respectively, in the quarter.
- Revenue of $7.5 million, increased 30% year-over-year
- $4.3 million in product sales; growth across all categories
The Company’s net loss for the quarter was $1.7 million, or $0.35 per share, compared to a net loss of $3.7 million, or $0.75 per share, in the second quarter of 2012. The second quarter 2013 net loss includes expenses of $1.1 million related to the ongoing investigation; the 2012 net loss includes a $3.2 million goodwill impairment charge. Excluding those items, operating expenses increased $1.1 million year-over-year, due to the continued planned investment in sales, marketing, and product development.
Product sales gross margin for the second quarter of 2013 was 41 percent, a decrease from the year ago quarter, due in part to pricing pressures. On a non-GAAP basis, excluding intangible asset amortization, impairment and the costs of the investigation, net of tax, the net loss for the second quarter was $244,000, or $0.05 per share, compared to net income of $231,000, or $0.05 per diluted share, in the same period a year ago.
Kris Tufto, CEO, said, “We posted our highest revenue level in six quarters and are pleased with the progress we’ve made in recent months and the benefits we are seeing from the continued investments we’ve made in our business. Our second-quarter revenue growth is attributable in large part to the increased traction across our global channels and with our distribution partner, Econolite, in growing Autoscope Radar sales. Although international sales during the quarter rose sequentially, we anticipate accelerated growth in the second half of the year as we continue to fulfill international product and solution orders. Furthermore, we expect our product margins will improve.”
In the first half of 2013, revenues increased to $12.1 million, up 10 percent from 2012 first half revenue of $11.0 million. Revenue from royalties was $5.8 million, compared to $5.4 million in 2012, and product sales were $6.3 million in the first six months, including $3.8 million of worldwide ALPR products. Autoscope Radar product sales and royalties were $943,000 and $672,000, respectively, for the six-month period. The year-to-date net loss totals $3.2 million, or $0.65 per share, compared to a net loss of $4.3 million, or $0.89 per share, in 2012.
On a non-GAAP basis, excluding intangible asset amortization and costs of the investigation, net of tax, net loss for the first six months was $897,000, or $0.18 per share, compared to a net loss of $96,000, or $0.02 per share, in the first six months of 2012. The previously disclosed investigation is ongoing and the Company is cooperating with authorities. The Company is presently unable to determine the likely outcome or range of loss, if any, or predict with certainty the timeline for resolution of these matters.
“We are excited about our future growth opportunities and our sales pipeline, both in terms of size and quality. Further, we are exploring other opportunities domestically and abroad that will accelerate future growth. We look forward to taking advantage of these opportunities as global economies continue toward full recovery,” said Tufto.
About Image Sensing
Image Sensing Systems, Inc. is a provider of above ground detection and information management solutions for the security, parking, crime and traffic management markets. We have sold more than 135,000 units of our industry leading Autoscope® machine-vision, radar and license plate recognition (LPR) products in over 60 countries worldwide. The depth of our experience coupled with the breadth of our product portfolio uniquely positions us to provide powerful hybrid technology solutions and to exploit the convergence of the traffic, security and environmental management markets. We are headquartered in St. Paul, Minnesota. Visit us on the web at imagesensing.com.