Autoscope Technologies Q4 Earnings Decline Y/Y, Revenues Rise

Shares of Autoscope Technologies Corporation AATC have inched up 1.5% since reporting earnings for the fourth quarter of 2024. This compares with the S&P 500 index’s 1.1% decline over the same time frame. Over the past month, the stock has gained 3.6% against the S&P 500’s 6.7% decline.Financial PerformanceAutoscope Technologies reported fourth-quarter 2024 revenues from continuing operations of $3.3 million, a 28% increase from $2.6 million in the prior-year period. Royalty revenues rose 22% to $3 million, driven by continued strong demand for Autoscope Vision in North America and favorable timing of agency project sales. Product sales skyrocketed 186% to $292,000, benefiting from increased sales of Wrong Way detection products, Autoscope Analytics and IntelliSight in the EMEA markets.Despite higher revenues, net income from continuing operations declined 32% to $761,000, or 14 cents per basic and diluted share, from $1.1 million, or 20 cents per share, in the fourth quarter of 2023. The decrease was primarily due to higher income tax expenses resulting from changes in the utilization of deferred tax assets. Income from operations, however, more than tripled to $1.5 million from $463,000 a year ago, reflecting higher royalty revenues and reduced operating expenses.For the year, revenues increased 4% year over year to $13.6 million, with royalties rising 2% to $13.2 million and product sales soaring 148% to $429,000. Full-year net income from continuing operations was steady at $4.5 million, though earnings per share dipped slightly to 82 cents from 83 cents due to an increased share count.Autoscope Technologies Corporation Price, Consensus and EPS Surprise  Autoscope Technologies Corporation price-consensus-eps-surprise-chart | Autoscope Technologies Corporation QuoteOther Key Business MetricsAATC maintained a strong gross margin of 95% in the fourth quarter, up from 93% in the prior year. The royalty gross margin expanded to 100% from 97% due to the full amortization of capitalized software development costs for Autoscope Vision. Product sales gross margin improved significantly to 40% from 16%, reflecting a favorable sales mix and the absence of amortization-related fixed costs.Operating expenses declined 14% year over year to $1.7 million, attributed to lower salaries and benefits from headcount reductions, partially offset by increased research and development costs to support Autoscope Vision. The company also recorded an investment income of $51,000, down from $178,000 in the previous year due to reduced holdings in debt securities.Management CommentaryInterim CEO Andy Markese emphasized the company’s strategic advancements in AI-powered video detection technology."We are pleased to see continued strong demand for Autoscope Vision across North America and the realization of our strategy to enhance user value through our latest AI-powered platform in Autoscope IntelliSight, Wrong Way, and Autoscope Analytics," Markese stated.He also reiterated Autoscope Technologies’s disciplined approach to expense management and its commitment to leveraging intellectual property to improve roadway safety and efficiency.Liquidity & Capital AllocationAs of Dec. 31, 2024, AATC held $4.4 million in cash and cash equivalents, down from $6.5 million at the end of 2023. The company generated $5.2 million in net cash from operating activities, up slightly from $5 million in the previous year. The decrease in the cash balance was led by the payment of a special one-time dividend of $1.32 per share, totaling $7.2 million, in February 2024.Additionally, the company increased its quarterly dividend to 15 cents per share in the fourth quarter from 13 cents in prior quarters.Net cash provided by investing activities was $2.9 million, reflecting $10.5 million in proceeds from the sale of debt securities, partially offset by $7.3 million in purchases of similar securities. The company also invested in a new enterprise resource planning system launched in October 2024. Financing activities used $10.2 million in cash, driven by dividend payments and debt repayments.Other DevelopmentsAutoscope Technologies did not report any acquisitions, divestitures or restructuring activities in the quarter. 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Click to get this free report Autoscope Technologies Corporation (AATC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks