Autoscope Technologies Reports $366,000 Profit and Declares $0.15 Per-Share Cash Dividend
Key Facts
Autoscope Technologies reported net income of $366,000, or $0.07 per basic and diluted share, in the third quarter of 2026, compared with a loss of $209,000, or $0.04 per share, in the same period of 2025. The company said in a statement distributed via GlobeNewswire that it approved a quarterly cash dividend of $0.15 per share. The dividend is payable November 30 to shareholders of record at the close of business on November 19. The company described the quarter’s results as reflecting stability in its royalty business and disciplined expense management. Its shares closed at $5.86 on November 4, the day before the results announcement.
Operating revenue was $2.1 million in the quarter, up 10.6% from $1.9 million a year earlier, according to the company’s quarterly report. Royalty revenue was $2.1 million, up 11% year over year, with the company attributing the increase mainly to higher sales volume. Product sales remained limited, at $9,000 versus $15,000 in the third quarter of 2025. The company attributed the decline in product sales mainly to lower IntelliSight sales, which recorded no sales in the quarter. The figures show that quarterly revenue growth came from royalties, while the products’ contribution remained small and fell from its year-earlier level.
Operating expenses fell 2.1% to $1.5 million from $1.6 million in the year-earlier period, according to the company’s statement. It said the improvement in net income was associated with higher royalty revenue and a noncash item that did not recur in the current quarter. In the third quarter of 2025, the company reclassified an accumulated foreign-currency translation loss of $0.6 million to earnings when it closed its Canadian and Spanish subsidiaries. No similar reclassification was recorded in 2026. The year-over-year comparison in net income therefore followed a significant accounting impact in the prior period, alongside revenue growth and lower expenses in the current period.
Gross margin was 97.0% in the third quarter, compared with 97.3% a year earlier, while royalty gross margin fell to 98.7% from 100%. The company attributed the lower royalty margin to capitalized OptiVu software development costs. For the nine months ended September 30, revenue was $7.0 million, up 0.8% from $6.9 million in the comparable period. Royalty revenue remained at $6.8 million, while net income rose 65.4% to $1.5 million. The nine-month results show slower revenue growth than in the standalone quarter, with royalties unchanged year over year.
Cash rose to $1.6 million at September 30 from $0.7 million at December 31, 2025. The company said the increase reflected positive operating activity, partly offset by cash used to pay dividends. Total cash and available-for-sale investments stood at $3.3 million at the end of September. The company said it expects these resources to be sufficient for working capital, investment and other cash requirements for the foreseeable future. It also said it plans to refinance long-term debt classified as current maturities in December 2026.
Chief Executive Andy Marchese said the quarter’s results "reflect the continued stability of our royalty business and disciplined expense management." He added that the company is focused on working with its strategic partner to accelerate OptiVu adoption and strengthen its core business. This focus comes as the second quarter of 2026 showed operating revenue declining 2.2% to $2.8 million and royalty revenue falling 4.9% to $2.7 million. In that quarter, product sales rose to $107,000 from $31,000 a year earlier, a different trend from their decline in the third quarter. The second-quarter report also said the Wrong Way product will reach the end of its operating life as of December 31, 2026.