Image Sensing Systems Purchases Assets of EIS and Announces Expanded Strategy
December 06 2007 - 6:06PM
PR Newswire (US)
Acquisition Brings ISS Leading Radar-Based Traffic Detection
Product SAINT PAUL, Minn., Dec. 6 /PRNewswire-FirstCall/ -- Image
Sensing Systems, Inc. ("ISS" or the "Company") (NASDAQ:ISNS)
announced today that it has purchased selected assets from EIS
Electronic Integrated Systems Inc. (EIS), including EIS' market
leading RTMS(TM) (Remote Traffic Microwave Sensor) radar product
line, for initial consideration of $10.9 million in cash and
147,202 shares of ISS common stock (valued at $2.5 million as of
yesterday's closing price). In addition, EIS has a three-year
earn-out agreement based on the performance of the purchased assets
where, if performance is at the target level, EIS would receive an
additional $6 million in cash. ISS has established a line of credit
with its bank to fund $5 million of the cash consideration. (Logo:
http://www.newscom.com/cgi-bin/prnh/20050512/CGISSLOGO) ISS expects
the acquisition will be accretive to 2008 earnings. Although ISS is
still evaluating the purchase accounting required, it anticipates
recording a significant expense in the current quarter for acquired
in-process research and development related to the purchased
assets. Substantially all EIS employees are expected to join ISS,
including its founder and president, Dan Manor. EIS had
approximately $8.0 million in revenue in its fiscal 2006. Mr. Manor
said, "EIS' shareholders and managers are thrilled to join up with
ISS. We view it as a win-win combination of technologies that are
complementary in nature. Both companies have a global presence and
brands that stand for quality. We couldn't ask for a better partner
to assist in the move from our third generation to fourth
generation technology. The RTMS G4, which is expected to be
commercially available early in 2008, will be the most advanced
radar traffic sensor on the market. This partnership is the logical
next step in expanding toward systems solutions for traffic
information and congestion management." Ken Aubrey, CEO of ISS,
said, "We couldn't be more excited to acquire the leading radar
product and to add the talented EIS group to our team. We share
similar histories and culture -- both pioneering our respective
technologies and driving the market." Strategy Expansion Mr. Aubrey
continued, "Our core competency is computer enabled detection (CED)
which we define as a group of technologies in which software,
rather than humans, examines the outputs of complex sensors to
determine what's happening in the field of view in real-time. The
key element in CED is complex algorithms that analyze the signal
from the sensor and then pass information along to management
systems, controllers or directly to users. With this acquisition we
can provide the RTMS radar based CED in addition to our existing
Autoscope(R) machine-vision CED offering." "Also, now that our
product portfolio contains both video and radar detection, we can
accelerate work on combining the best of video and radar to create
a hybrid offering that doesn't exist in the market today. The
advantage of hybrid technology is that one sensor type can
compensate for the limitations of the other sensor giving the
potential for detection performance well above what can be achieved
with one sensor alone. Additionally, the hybrid product can be made
with an incrementally smaller cost than using two independent
sensor types." "We will continue to leverage our strength in
Intelligent Transportation Systems (ITS) to capture increased
market share in this fast growing world-wide market. We also
believe that our skills in CED and a hybrid offering will make our
products increasingly attractive in ITS and adjacent markets.
Ultimately, we see a convergence of ITS, security and environmental
markets and we aim to be well positioned to be a leading provider
of CED components to management systems providers. We will do this
through continued internal development and selected product and
channel acquisition strategies." Image Sensing Systems, Inc.
(NASDAQ:ISNS) is a technology company specializing in software
based detection solutions for the Intelligent Transportation
Systems (ITS) sector and adjacent overlapping markets. Our industry
leading computer enabled detection (CED) products, including the
Autoscope(R) machine-vision family and the RTMS(TM) radar family,
combine embedded software signal processing with sophisticated
sensing technologies for use in transportation and
safety/surveillance management. CED is a group of technologies in
which software, rather than humans, examines the outputs of complex
sensors to determine what is happening in the field of view in
real-time. With more than 80,000 instances sold in over 60
countries worldwide, our depth of experience coupled with breadth
of product portfolio uniquely positions us to provide powerful
hybrid technology solutions and to exploit the convergence of the
traffic, security and environmental management markets. We are
headquartered in St. Paul, Minnesota. Visit us on the web at
imagesensing.com. 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
reports and other documents filed with the Securities and Exchange
Commission, including its Form 10-K for the year ended December 31,
2006. http://www.newscom.com/cgi-bin/prnh/20050512/CGISSLOGO
http://photoarchive.ap.org/ DATASOURCE: Image Sensing Systems, Inc.
CONTACT: Greg Smith, Chief Financial Officer of Image Sensing
Systems, Inc., +1-651-603-7700 Web site:
http://www.imagesensing.com/
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