First Quarter 2024 Financial Summary
- Royalties increased 4 percent to
$3.1 million compared to$3.0 million in the same period in the prior year. - Operating expenses from continuing operations were comparable at
$1.9 million in the first quarter of 2024 and in the same period in the prior year. - Income from operations for the first quarter of 2024 totaled
$1.1million compared to$0.9 million for the same period in the prior year.
First-Quarter Results
Revenue from continuing operations for
Gross margin for the first quarter of 2024 was 96 percent, a 2-percentage point increase from a gross margin of 94 percent for the same period in 2023. Royalty gross margin for the first quarter of 2024 was 97 percent compared to 96 percent in the same period in 2023. The increase in royalty gross margin percent for the first quarter of 2024 is primarily due to higher sales of video detection products yielding higher royalty revenues. As a percent of revenue, product sales gross margins decreased from (26) percent in the first quarter of 2023 to (94) percent in the first quarter of 2024. The decrease in the product sales gross margin percent was the result of lower product sales and the amortization of costs associated with capitalized software development which are fixed.
The Company recognized tax expense of
The Company reported net income from continuing operations for the first quarter of 2024 of $0.9 million or
Liquidity and Capital Resources
As of
Net cash used by operating activities of continuing operations was
Net cash provided by investing activities of continuing operations was
Net cash used by financing activities of continuing operations was
“We are confident in the sustained strong market demand for Autoscope Vision, with ongoing opportunities in the
About
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.
Those risks and uncertainties may include, but are not limited to, our historical dependence on a single product for most of our revenue; competition; potential changes in government spending on transportation technology; acceptance of our product offerings and designs; budget constraints by governmental entities that purchase our products, including constraints caused by declining tax revenue; the continuing ability of
We further caution you not to unduly rely on any forward-looking statements because they reflect our views only as of the date the statements were made. We undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Condensed Consolidated Statements of Operations
(in thousands, except per share information)
(unaudited)
Three-Month Period Ended | |||||||
2024 | 2023 | ||||||
Revenue | |||||||
Royalties | $ | 3,121 | $ | 3,012 | |||
Product sales | 16 | 70 | |||||
3,137 | 3,082 | ||||||
Cost of revenue | 136 | 200 | |||||
Gross profit | 3,001 | 2,882 | |||||
96 | % | 94 | % | ||||
Operating expenses | |||||||
Selling, general and administrative | 1,263 | 1,311 | |||||
Research and development | 610 | 633 | |||||
1,873 | 1,944 | ||||||
Income from operations | 1,128 | 938 | |||||
Other income | 9 | 7 | |||||
Investment income (loss) | (5 | ) | 53 | ||||
Interest expense, net | (17 | ) | (17 | ) | |||
Income before income taxes | 1,115 | 981 | |||||
Income tax expense | 263 | 223 | |||||
Net income from continuing operations | 852 | 758 | |||||
Discontinued operations | |||||||
Net income from discontinued operations, net of tax | - | 73 | |||||
Consolidated net income | $ | 852 | $ | 831 | |||
Net income per share from continuing operations, basic and diluted | $ | 0.16 | $ | 0.14 | |||
Net income per share from discontinued operations, basic and diluted | $ | - | $ | 0.01 | |||
Net income per share from operations, basic and diluted | $ | 0.16 | $ | 0.15 | |||
Weighted shares - basic | 5,412 | 5,406 | |||||
Weighted shares - diluted | 5,419 | 5,406 | |||||
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
2024 | 2023 | ||||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | $ | 1,598 | $ | 6,506 | |
Receivables, net | 3,471 | 3,080 | |||
Inventories | 2,887 | 2,891 | |||
Investment in debt and equity securities | 3,148 | 5,923 | |||
Prepaid expenses and other current assets | 461 | 689 | |||
11,565 | 19,089 | ||||
Property and equipment, net | 1,965 | 1,973 | |||
Intangible assets, net | 864 | 995 | |||
Deferred taxes | 3,196 | 3,471 | |||
Long term investment securities | - | 101 | |||
Operating lease asset, net | 16 | 18 | |||
$ | 17,606 | $ | 25,647 | ||
Liabilities and Shareholders’ Equity | |||||
Current liabilities | |||||
Accounts payable | $ | 31 | $ | 1,101 | |
Current maturities on long-term debt | 61 | 60 | |||
Warranty and other current liabilities | 400 | 360 | |||
Current liabilities held for sale | - | 24 | |||
492 | 1,545 | ||||
Non-Current liabilities | |||||
Long-term debt, net of current liabilities | 1,540 | 1,556 | |||
Shareholders’ equity | 15,574 | 22,546 | |||
$ | 17,606 | $ | 25,647 | ||
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three-Month Period Ended | |||||||
2024 | 2023 | ||||||
Operating activities | |||||||
Net income | $ | 852 | $ | 831 | |||
Less: Net income from discontinued operations, net of tax | - | 73 | |||||
Net income from continuing operations | 852 | 758 | |||||
Adjustments to reconcile net income to net cash | |||||||
provided by operating activities | |||||||
Depreciation and amortization | 158 | 223 | |||||
Stock-based compensation | 33 | 13 | |||||
Loss on disposal of assets | 1 | - | |||||
Investment amortization | 73 | 6 | |||||
Unrealized loss on available for sale investments | 1 | - | |||||
Unrealized gain on equity investments | - | (82 | ) | ||||
Amortization of debt issuance costs | 1 | 1 | |||||
Deferred income tax expense | 261 | 240 | |||||
Changes in operating assets and liabilities | (1,414 | ) | (166 | ) | |||
Net cash (used) provided by operating activities of continuing operations | (34 | ) | 993 | ||||
Net cash provided by operating activities of discontinued operations | - | 73 | |||||
Net cash (used) provided by operating activities | (34 | ) | 1,066 | ||||
Investing activities | |||||||
Purchases of property and equipment | (20 | ) | - | ||||
Sale of securities | 5,733 | 2,054 | |||||
Purchase of securities | (2,648 | ) | (1,968 | ) | |||
Net cash provided by investing activities of continuing operations | 3,065 | 86 | |||||
Net cash provided by investing activities of discontinued operations | - | - | |||||
Net cash provided by investing activities | 3,065 | 86 | |||||
Financing activities | |||||||
Dividends paid | (7,898 | ) | - | ||||
Principal payments on long-term debt | (16 | ) | (15 | ) | |||
Net cash used by financing activities of continuing operations | (7,914 | ) | (15 | ) | |||
Net cash used by financing activities of discontinued operations | - | - | |||||
Net cash used by financing activities | (7,914 | ) | (15 | ) | |||
Effect of exchange rate changes on cash | (25 | ) | (14 | ) | |||
Increase (decrease) in cash and cash equivalents | (4,908 | ) | 1,123 | ||||
Cash and cash equivalents at beginning of period | 6,506 | 1,177 | |||||
Cash and cash equivalents at end of period | $ | 1,598 | $ | 2,300 | |||
Non-Cash investing activities: | |||||||
Cash paid for interest | 17 | 17 | |||||
Non-GAAP Income from Continuing Operations
(in thousands)
(unaudited)
We define non-GAAP income from operations as income from operations before amortization of intangible assets, depreciation, and restructuring charges for the applicable periods. Management believes non-GAAP income from operations is a useful indicator of our financial performance and our ability to generate cash flows from operations. Our definition of non-GAAP income from operations may not be comparable to similarly titled definitions used by other companies. The table below reconciles non-GAAP income from operations, which is a non-GAAP financial measure, to comparable GAAP financial measures:
Three-Month Period Ended | |||||
2024 | 2023 | ||||
Income from continuing operations | $ | 1,128 | $ | 938 | |
Amortization of intangible assets | 131 | 139 | |||
Depreciation | 27 | 26 | |||
Non-GAAP income from continuing operations | $ | 1,286 | $ | 1,103 |
Note – Our calculation of non-GAAP income from operations is considered a non-GAAP financial measure and is not in accordance with, or preferable to, “as reported”, or GAAP financial data. However, we are providing this information, as we believe it facilitates analysis of the Company’s financial performance by investors and financial analysts.
Contact: | |
612-438-2363 |
Source:
2024 GlobeNewswire, Inc., source