We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Autoscope Reports Y/Y Decline in Q3 Earnings & Revenues
Read MoreHide Full Article
Autoscope Technologies Corporation (AATC - Free Report) recently released its third-quarter 2024 earnings report, offering insights into its financial performance amid evolving market conditions. While the company faced revenue challenges, management’s strategic initiatives and cost-efficiency measures played a key role in stabilizing profitability.
Autoscope's focus on innovative product offerings and expanding role in the Intelligent Transportation Systems sector underscore its commitment to long-term growth despite short-term revenue fluctuations. The report highlights Autoscope's resilience and adaptability as it navigates an increasingly competitive landscape.
Q3 Results
Autoscopereported third-quarter 2024 diluted earnings per share of 24 cents, a 7.4% decline from 27 cents in the same quarter last year.
The company reported total quarterly revenues of $3.4 million, down 11% from $3.8 million in the year-ago quarter.
The quarterly results can be attributed to lower sales prices and an earlier fulfillment of a backlog due to improved component availability in 2023.
Autoscope Technologies Corporation Price, Consensus and EPS Surprise
The royalty segment remains the primary revenue driver for Autoscope, contributing $3.3 million. However, the 12% year-over-year decline in royalty revenue reflects decreased sales prices and prior fulfillment of orders that had temporarily increased third-quarter 2023 revenues.
Product sales totaled $50,000 in third-quarter 2024, marking a gain from no recorded sales in the same quarter of 2023. This increase in product sales stemmed from Autoscope’s Wrong Way and Autoscope products, which saw renewed interest and demand this quarter.
Profitability Metrics
Autoscope maintained a steady gross margin of 96% in the third quarter of 2024, consistent with the same period last year. However, there was a notable contrast in gross margin by segment; royalty sales held a robust 97% margin, while product sales registered a gross margin of 10% due to amortization costs of capitalized software development and low sales volumes.
Operating income fell to $1.6 million in the reported quarter, marking an 11% decrease from $1.8 million in third-quarter 2023, reflecting lower revenue despite cost-cutting measures.
Costs
Operating expenses decreased 12% from $1.8 million in third-quarter 2023 to $1.6 million in third-quarter 2024. The reduction was primarily due to lower salaries and benefits resulting from a decreased headcount.
The company’s tax expense was $0.3 million in the third quarter of 2024, down from $0.4 million in the year-ago quarter, which correlated with the lower pre-tax income.
Cash, Debt, and Capital Expenditure
As of Sept. 30, 2024, AATC’s cash and cash equivalents totaled $4.3 million, down from $6.5 million at the end of 2023. Net cash provided by operating activities was $3.2 million, an increase from $2.9 million in the same period of 2023, due to higher net income and timing benefits from accounts receivable.
Net cash from investing activities was $4 million in the reported quarter, largely driven by the sale of debt securities valued at $8.6 million. The proceeds funded a special dividend paid earlier in the year.
Net cash used for financing was $9.4 million, primarily reflecting dividends paid, including a one-time special dividend in February 2024.
Total debt stood at $1.6 million at the end of the third quarter of 2024, consistent with levels at the end of 2023.
Other Developments
Management highlighted strategic advancements in product offerings, especially the rollout of Autoscope Analytics, a platform geared toward community safety improvements. The platform has been integrated into Vision Zero initiatives, helping cities across states like California, Ohio, and Texas enhance road safety through data-driven insights.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Autoscope Reports Y/Y Decline in Q3 Earnings & Revenues
Autoscope Technologies Corporation (AATC - Free Report) recently released its third-quarter 2024 earnings report, offering insights into its financial performance amid evolving market conditions. While the company faced revenue challenges, management’s strategic initiatives and cost-efficiency measures played a key role in stabilizing profitability.
Autoscope's focus on innovative product offerings and expanding role in the Intelligent Transportation Systems sector underscore its commitment to long-term growth despite short-term revenue fluctuations. The report highlights Autoscope's resilience and adaptability as it navigates an increasingly competitive landscape.
Q3 Results
Autoscopereported third-quarter 2024 diluted earnings per share of 24 cents, a 7.4% decline from 27 cents in the same quarter last year.
The company reported total quarterly revenues of $3.4 million, down 11% from $3.8 million in the year-ago quarter.
The quarterly results can be attributed to lower sales prices and an earlier fulfillment of a backlog due to improved component availability in 2023.
Autoscope Technologies Corporation Price, Consensus and EPS Surprise
Autoscope Technologies Corporation price-consensus-eps-surprise-chart | Autoscope Technologies Corporation Quote
Declining Royalties & Surging Product Sales
The royalty segment remains the primary revenue driver for Autoscope, contributing $3.3 million. However, the 12% year-over-year decline in royalty revenue reflects decreased sales prices and prior fulfillment of orders that had temporarily increased third-quarter 2023 revenues.
Product sales totaled $50,000 in third-quarter 2024, marking a gain from no recorded sales in the same quarter of 2023. This increase in product sales stemmed from Autoscope’s Wrong Way and Autoscope products, which saw renewed interest and demand this quarter.
Profitability Metrics
Autoscope maintained a steady gross margin of 96% in the third quarter of 2024, consistent with the same period last year. However, there was a notable contrast in gross margin by segment; royalty sales held a robust 97% margin, while product sales registered a gross margin of 10% due to amortization costs of capitalized software development and low sales volumes.
Operating income fell to $1.6 million in the reported quarter, marking an 11% decrease from $1.8 million in third-quarter 2023, reflecting lower revenue despite cost-cutting measures.
Costs
Operating expenses decreased 12% from $1.8 million in third-quarter 2023 to $1.6 million in third-quarter 2024. The reduction was primarily due to lower salaries and benefits resulting from a decreased headcount.
The company’s tax expense was $0.3 million in the third quarter of 2024, down from $0.4 million in the year-ago quarter, which correlated with the lower pre-tax income.
Cash, Debt, and Capital Expenditure
As of Sept. 30, 2024, AATC’s cash and cash equivalents totaled $4.3 million, down from $6.5 million at the end of 2023. Net cash provided by operating activities was $3.2 million, an increase from $2.9 million in the same period of 2023, due to higher net income and timing benefits from accounts receivable.
Net cash from investing activities was $4 million in the reported quarter, largely driven by the sale of debt securities valued at $8.6 million. The proceeds funded a special dividend paid earlier in the year.
Net cash used for financing was $9.4 million, primarily reflecting dividends paid, including a one-time special dividend in February 2024.
Total debt stood at $1.6 million at the end of the third quarter of 2024, consistent with levels at the end of 2023.
Other Developments
Management highlighted strategic advancements in product offerings, especially the rollout of Autoscope Analytics, a platform geared toward community safety improvements. The platform has been integrated into Vision Zero initiatives, helping cities across states like California, Ohio, and Texas enhance road safety through data-driven insights.