10-K · March 22, 2022
Autoscope (AATC) completed a holding-company reorganization on July 21, 2021 and continues to position itself as a technology-led provider of above‑ground traffic detection (Autoscope video, RTMS radar, IntellitraffiQ).…
Earnings analysis · 10-Q
AATC earnings analysis
Filed August 11, 2022 · Our reading of the company's report
The latest report
Autoscope (AATC) reported Q2 revenue of $2,819,000 and diluted EPS of $0.01. Revenue and profitability declined versus the year-ago quarter (revenue down $969,000; net income down $678,000) while cash balances fell…
Read full summary
Autoscope (AATC) reported Q2 revenue of $2,819,000 and diluted EPS of $0.01. Revenue and profitability declined versus the year-ago quarter (revenue down $969,000; net income down $678,000) while cash balances fell sharply to $1,933,000 at June 30, 2022. Management reclassified $3.4 million of held-to-maturity debt securities to available-for-sale and continues to pay quarterly dividends ($0.12 per share declared and paid in Feb and May; $0.12 declared Aug 9, 2022).
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.01
What stood out
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Product sales grew year-over-year
Product sales increased to $1,432,000 in Q2 2022 from $1,305,000 in Q2 2021 (an increase of $127,000), per the revenue breakout.
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Continued cash dividend program
Board paid $0.12 per share on February 28 and May 30, 2022 and on August 9, 2022 approved a further $0.12 per share payable August 31, 2022.
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Investments deployed into marketable securities
The company purchased $3,521,000 of debt securities and $795,000 of equity securities during the six months ended June 30, 2022, resulting in available-for-sale debt securities fair value of $3,436,000 as of June 30, 2022.
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Modest reduction in long-term debt
Long-term debt decreased to $1,645,000 at June 30, 2022 from $1,674,000 at December 31, 2021 (down $29,000).
What to watch
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Quarterly revenue materially declined
Total revenue fell to $2,819,000 in Q2 2022 from $3,788,000 in Q2 2021, a decline of $969,000 (≈25.6%), pressuring profitability.
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Operating profit and net income sharply lower
Income from operations declined to $145,000 in Q2 2022 from $904,000 in Q2 2021 (down $759,000); net income fell to $74,000 from $752,000 (down $678,000).
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Cash balance dropped significantly
Cash and cash equivalents decreased to $1,933,000 at June 30, 2022 from $8,229,000 at December 31, 2021, a reduction of $6,296,000 (change in cash and equivalents).
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Operating cash flow weakened
Net cash provided by (used for) operating activities was $79,000 for the six months ended June 30, 2022 versus $709,000 for the six months ended June 30, 2021 (down $630,000).
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Unrealized losses on reclassified securities
The company reclassified $3.4 million of held-to-maturity securities to available-for-sale and recognized a transfer difference of $62,000 to accumulated other comprehensive loss; available-for-sale securities had total unrealized losses of $79,000 at June 30, 2022.
Management's outlook
The MD&A contains no numeric forward revenue or EPS guidance. Management states that adoption of ASU 2016-13 is expected to have an immaterial impact ("we expect the impact of adoption to be immaterial"). Outlook appears to be deferred to future earnings releases/calls; no numeric outlook in the 10-Q.
Earlier filings 4
10-Q · May 3, 2021
Image Sensing reported a profitability turnaround in Q1 2021 with net income of $1,131,000 (diluted EPS $0.21) versus a net loss of $(111,000) in Q1 2020, driven by lower operating expenses and a $925,000 item in other…
10-Q · May 14, 2020
Q1 2020 revenue declined 6.3% YoY to $3,159,000 while gross margin improved to 80.3% from 76.9%. Higher operating expenses (SG&A $1,909,000; R&D $902,000) turned operating income of $308,000 in Q1 2019 into an operating…
10-Q · November 13, 2019
Image Sensing Systems reported Q3 2019 revenue of $3,689,000, down 8.9% versus $4,049,000 in Q3 2018, while gross margin improved to 86.2% from 81.7%. Operating income rose to $925,000 from $851,000 and diluted EPS…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.