EXHIBIT 99.1
[IMAGE SENSING SYSTEMS LOGO] 500 Spruce Tree Centre
1600 University Avenue West
St. Paul, Minnesota 55104-3825 USA
651.603.7700 Fas: 651.603.7795
www.imagesensing.com
NEWS RELEASE
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CONTACTS: ART BOURGEOIS, CHIEF FINANCIAL OFFICER
IMAGE SENSING SYSTEMS, INC. PHONE: 651.603.7700
FOR IMMEDIATE RELEASE
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IMAGE SENSING SYSTEMS ANNOUNCES RECORD 2003 FINANCIAL RESULTS
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SAINT PAUL, MINN., FEBRUARY 17, 2004-- Image Sensing Systems, Inc. (ISS) (NASDAQ
Small Cap: ISNS) announced today that its net income for 2003 was a record
$2,135,000 or $.66 per undiluted share ($.59 per diluted share) versus net
income of $1,192,000 or $.38 per undiluted share for 2002. Net income for the
fourth quarter was $376,000 or $.12 per undiluted share ($.10 per diluted
share), versus net income of $302,000 or $.10 per undiluted share for the
comparable period in 2002. The fourth quarter of 2003 marks the seventh
consecutive quarter where profitability exceeded the comparable quarter of the
prior year.
Revenues for fiscal year 2003 were $9,259,000, an increase of 15%, from
$8,085,000 in fiscal year 2002, while revenues for the fourth quarter of 2003
increased 11% to $2,437,000 compared with $2,204,000 for the same period a year
ago. The increases in revenue for the year and quarter were due primarily to
increased royalty income earned from Autoscope sales by our North American
partner, Econolite Control Products, Inc. (ECPI), and continued growth in
international sales through our wholly owned Hong Kong subsidiary, Flow Traffic
Limited, and our European distributors. Royalty income from ECPI for fiscal 2003
increased by 19% over fiscal 2002 while product sales increased by 12%. We also
were able to improve margins on product sales by 4 percentage points while
reducing operating costs, exclusive of 2002 restructuring costs, as a percent of
revenue by over 5 percentage points.
Jim Murdakes, Chairman and CEO commented, "We are extremely pleased with our
continued financial performance resulting in a 74% increase in basic earnings
per share from one year ago. We continued the development of new technologies
while supporting ECPI and our international business. Besides posting excellent
financial results in 2003, we began shipment of a new hardware product for
Europe, released a major software upgrade that included the Wizard, an automatic
method of placing detectors, and developed a new German communications protocol.
We also set in motion development projects for new products slated for delivery
in 2004."
Headquartered in St. Paul, Minnesota, Image Sensing Systems, Inc. combines
expertise in image processing, hardware and software engineering, and
communications to develop video vehicle detection
systems for traffic management and control applications. The Autoscope vehicle
detection system is the world leader in video detection for advanced traffic
management systems for highways, tunnel incident detection, intersection
control, and traffic data collection. The Autoscope system provides traffic
managers the means to reduce roadway congestion, improve roadway planning, and
improve cost efficiencies.
SAFE HARBOR STATEMENT: Statements made in this release concerning the Company's
or management's intentions, expectations, or predictions about future results or
events are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements reflect management's
current expectations or beliefs, and are subject to risks and uncertainties that
could cause actual results or events to vary from stated expectations, which
variations could be material and adverse. Factors that could produce such a
variation include, but are not limited to, the following: the inherent
unreliability of earnings, revenue and cash flow predictions due to numerous
factors, many of which are beyond the Company's control; developments in the
demand for the Company's products and services; relationships with the Company's
major customers and suppliers; unanticipated delays, costs and expenses inherent
in the development and marketing of new products and services; the impact of
governmental laws and regulations; and competitive factors. Our forward-looking
statements speak only as of the time made, and we assume no obligation to
publicly update any such statements. Additional information concerning these and
other factors that could cause actual results and events to differ materially
from the Company's current expectations are contained in the Company's Form
10-KSB for the year ended December 31, 2002."
Three Month Period and Year Ended December 31, 2003 and 2002 (in thousands,
except per share information)
Three-Month
Period ended Year Ended
December 31 December 31
2003 2002 2003 2002
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Revenue $2,437 $2,204 $9,259 $8,085
Operating income 519 449 2,948 1,340
Net income 376 302 2,135 1,192
Net income per share
Basic .12 .10 .66 .38
Diluted .10 .09 .59 .37
Weighted average number of
common shares outstanding
Basic 3,263 3,161 3,215 3,155
Diluted 3,772 3,416 3,598 3,252
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