Dallas, Texas 12/09/2014 (FINANCIALSTRENDS) – Image Sensing Systems, Inc. (NASDAQ:ISNS) witnessed steep increase in its share prices when it announced the completion of investigation by the U.S. Department of Justice. The SEC also closed its investigation against the company without recommending enforcement action. The investigations were pertaining to the company’s alleged violations of the Foreign Corrupt Practices Act. However, the company did not face any fines at the close of these investigations.
However, Image Sensing could not sustain those gains and lost nearly 50% since then. The company also seems to be struggling with its business as it reported 8% and 12% decline in 3Q14 and nine months revenue to $7.1 million and $17.4 million, respectively. The company reported net loss of $553,000 for the quarter ended September 30, 2014.
On the other hand, rival Iteris Inc (NYSEMKT:ITI) reported 9% increase in its total revenues to $18.6 million during 2Q15 ended September 30, 2014. Iteris reported net loss of $187,000 in 2Q15, mainly because of higher development costs and sales and marketing expenditures.
Image Sensing Systems, Inc. (NASDAQ:ISNS) closed its office in Poland and incurred about $460,000 in restructuring expenses during 1Q14. The company also completed the consolidation of its Poland office operations into the Romanian and U.K. offices during 1H14.
Now it is expecting overall improvement in cost structure through 2H14, with plans to reinvest such savings towards achieving long-term growth objectives. The company has also taken key measures to improve business processes and customer experience.
Image Sensing Systems, Inc. (NASDAQ:ISNS) also introduced a product to during first half of the year to expand its cloud offerings. Kris Tufto, CEO of Image Sensing, said that the company completed transfer of manufacturing and domestic marketing of the Autoscope radar line from Econolite to Image Sensing. This transition will be accretive to the company’s revenue in future periods.