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MINNEAPOLIS - Autoscope Technologies Corporation (OTCQX:AATC) reported Thursday a 50% decrease in second-quarter net income to $0.8 million, or $0.14 per basic and diluted share, compared to $1.5 million, or $0.28 per share, in the same period last year. Despite the quarterly decline, InvestingPro analysis shows the company maintains a "GREAT" overall financial health score of 3.3 out of 5, with particularly strong profitability metrics.
The company’s quarterly revenue fell 24% to $2.9 million, down from $3.8 million in the second quarter of 2024, primarily due to a 24% decrease in royalties to $2.8 million. Product sales declined 56% to $31,000.
For the first six months of 2025, Autoscope reported net income of $1.1 million, or $0.21 per share, a 53% decrease from $2.4 million, or $0.44 per share, in the same period of 2024. Six-month revenue decreased 27% to $5.0 million.
The company’s cash balance stood at $2.4 million as of June 30, 2025, up from $609,000 at the end of the first quarter but down from $4.4 million at the end of 2024.
Autoscope’s Board of Directors declared a quarterly cash dividend of $0.15 per share, payable on August 25 to shareholders of record as of August 18. According to InvestingPro data, the company has consistently raised its dividend for four consecutive years, with a current dividend yield of 21.5% - significantly higher than its 5-year average of 12%.
Andy Markese, Interim CEO of Autoscope Technologies, attributed the decline in royalty revenue to "both a strategic product transition and broader macroeconomic factors," noting that sales of legacy products have temporarily slowed as agencies evaluate the company’s newer Autoscope OptiVu product. He also cited federal funding uncertainty and Build America, Buy America requirements as factors impacting customer supply chains.
Operating expenses for the quarter remained unchanged at $1.7 million, while gross margin improved to 98% from 95% in the same period last year. Based on InvestingPro Fair Value analysis, the stock appears to be currently undervalued, with strong fundamentals including a return on equity of 30% and an attractive P/E ratio of 10.5. InvestingPro subscribers have access to 8 additional key insights about AATC’s financial position and growth prospects.
The company recognized a tax expense of $344,000 in the second quarter, lower than the $406,000 in the prior year period due to decreased pre-tax income, partially offset by a deferred tax asset write-off of $119,000 related to the pending dissolution of its Canadian entity.
This article is based on a press release statement from Autoscope Technologies Corporation.
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