Autoscope Technologies Corporation Announces Financial Results and Dividend Declaration

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.

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 Econolite Control Products, Inc. to sell our products and pay royalties owed to us; the mix of and margins on the products we sell; our dependence on third parties for manufacturing and marketing our products; our dependence on single-source suppliers to meet manufacturing needs; our failure to secure adequate protection for our intellectual property rights; our inability to develop new applications and product enhancements; the potential disruptive effect on the markets we serve of new and emerging technologies and applications, including vehicle-to-vehicle communications and autonomous vehicles; unanticipated delays, costs and expenses inherent in the development and marketing of new products; our inability to respond to low-cost local competitors; our inability to properly manage any growth in revenue and/or production requirements; the influence over our voting stock by affiliates; our inability to hire and retain key scientific and technical personnel; the effects of legal matters in which we may become involved; our inability to achieve and maintain effective internal controls; our inability to successfully integrate any acquisitions; tariffs and other trade barriers; our operating results fluctuate from quarter to quarter due to, among other reasons, the fact that our operating costs tend to be fixed, while our revenue tends to be seasonal; any significant variations between actual amounts and the amounts estimated for those matters identified as our critical accounting estimates and other significant accounting estimates made in the preparation of our financial statements; political and economic instability, including continuing volatility in the economic and political environment of the European Union, the war in Ukraine, the conflict between Israel and Hamas and other disruptions in the Middle East; our inability to comply with international regulatory restrictions over hazardous substances and electronic waste; the impact of international supply chain disruptions and delays; the impact of changes in U.S. federal and state income tax regulations; the impact of inflation and our ability to pass on rising prices to its customers; and conditions beyond our control such as war, terrorist attacks, health epidemics (including the COVID-19 pandemic caused by the coronavirus) and economic recession.

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. 

Autoscope Technologies Corporation
Non-GAAP Income from 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:     

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.

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