SAINT PAUL, Minn., April 20, 2011 /PRNewswire/ -- Image Sensing Systems, Inc. (NASDAQ: ISNS), today provided preliminary revenue and earnings per share for its first quarter ended March 31, 2011. The company has not previously provided quarterly guidance, nor does it intend to regularly do so in the future.
Based on preliminary financial information, the company anticipates that revenue for the 2011 first quarter will be in the range of $5.8 million to $6.2 million, compared to $5.4 million in the year-ago period. It also expects a net loss for the first quarter in the range of $(500,000) to $(900,000) or $(0.10) to $(0.19) per share, compared to net income of $402,000 or $0.10 per diluted share in the 2010 first quarter. On a non-GAAP basis, it expects a net loss in the 2011 first quarter of $(250,000) to $(650,000) or $(0.05) to $(0.14) per share. The non-GAAP results exclude intangible assets amortization net of income taxes, which is estimated at $250,000 for the first quarter. This compares to non-GAAP earnings of $529,000 or $0.13 per diluted share in the year-ago period (excluding $127,000 of amortization net of tax).
"While these results are below our expectations, as we have previously disclosed, Image Sensing Systems operates in an industry that fluctuates considerably season-to-season and also demonstrates a 'lumpiness' on a project-to-project award timing and range of value basis," said Ken Aubrey, company CEO. "The winter season tends to be a low-demand period, and we witnessed particularly soft demand in the 2011 first quarter across the board in Asia and for the RTMS products. This seasonal hurdle follows our 2010 fourth quarter, which alternatively exhibited beneficial project award timing and range of values. We believe demand will resume to normal levels going forward."In addition, we concurrently experienced both planned and unplanned management transitions in our RTMS, Asian and European businesses and were not fully successful in dampening the negative knock-on impacts of these transitions in the face of the simultaneous seasonal downturn. Ultimately, we believe that these management transitions are now in large part behind us and, when fully completed, will prove beneficial going forward."