Image Sensing Systems, Inc. (NASDAQ: ISNS) has announced the expansion of its product offering in more regions including the Middle East, Asia and Latin America. That move comes as the company continues to look for opportunities to boost its revenue growth. ISNS recently reported an improvement in revenue for 2Q2016.
Image Sensing Systems, Inc. (NASDAQ: ISNS) said that it will be working with channel partners and system integrators to facilitate the distribution and support of its products in the regions it is expanding into. The company further said that it will be offering its North American and European formats of its Autoscope video products to clients in the new regions.
ISNS did not disclose how much it expects to generate in new revenue from the new regions. But the company hinted that it is hoping to take advantage of the growth in the regions to drive long-term topline and bottom-line improvement.
Some of the regions targeted are expected to have access to ISNS’s products immediately while roll out in certain regions will be gradual.
Image Sensing Systems, Inc. (NASDAQ: ISNS)’s expansion plans come after the company recently reported encouraging results for its 2Q2016. The company said that revenue from continuing operations rose to $4.7 million from $4.4 million a year ago. However, gross margin declined to 79% from 81%, thanks to higher product sales. It turns out that product sales carry a thinner margin than services.
Product sales in the latest quarter came in at $2.3 million, indicating an increase of 29% YoY. But royalty revenue decreased 10% to $2.4 million.
Image Sensing Systems, Inc. (NASDAQ: ISNS) said that product sales in the latest quarter were supported by strong demand for its RTMS Sx-300 product.
What happened to the bottom-line?
ISNS reported net income from continuing operations of $1.2 million or $0.24 per share. That compared with $0.13 per share in the same period last year.
Outlook for Image Sensing Systems, Inc. (NASDAQ: ISNS)
Image Sensing Systems, Inc. (NASDAQ: ISNS) didn’t provide a firm guidance for 3Q2016 or 2016, but hinted that it is working to boost its product sales over the long-term. The efforts being made to improve sales include expansion into new markets and rolling out of new products.