Mike Arnold
Long only, small-cap, tech, growth at reasonable price

Elevated R&D Spend Masks Earnings Power At Image Sensing Systems

Image Sensing Systems (NASDAQ:ISNS) "develops and markets video and radar processing products for use in traffic, security, police and parking applications such as intersection control, highway, bridge and tunnel traffic management, venue security, entry control, license plate recognition and traffic data collection."

ISNS also enjoys an attractive, predictable, scalable and high-margin royalty stream from its licensing agreement with Econolite, which allows ISNS to reinvest the royalty cash flow to build a software solution it calls "Safe Cities." Safe Cities is designed to leverage ISNS' competencies in above-ground detection hardware by adding a high-margin SaaS revenue stream for law enforcement, security and traffic management professionals.

Collectively, ISNS management estimates its end-markets to be up to an $800 million...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details