AATC earnings analysis
What we found in AATC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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).
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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).
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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).
- 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).
- 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).
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.01
- Gross margin
- 70.8%
- Operating margin
- 5.1%
- Segment
- Product sales: $1,432,000
- Segment
- Royalties: $1,387,000
What they said about what is next.
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.
The filing reads worse than the one before it.
What came before.
- 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).…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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