Nestor posts 69% increase in 3Q revenue

PROVIDENCE – Nestor Inc. (Nasdaq: NEST) today posted a 69 percent increase in third-quarter total revenue to $3.35 million from the year-ago period’s $1.98 million. The automated traffic-enforcement systems and services provider credited a continued increase in installed systems, to 280 red-light units and seven speed units installed and generating revenue on Sept. 30, compared with 202 red-light and 10 speed units a year earlier.
The company fell short of its goal of returning to profitability by the end of the quarter, posting a netloss of $1.97 million for the three months ended Sept. 30, compared with a loss of $1.51 million in the preceding quarter and a profit of $2.65 million in the third quarter of 2006.
But Nestor said it achieved positive modified EBITDA (earnings before interest, taxes, depreciation and amortization) of $432,000 compared with the year-ago period’s negative EBITDA of $1.45 million. The year-ago period included a $7.14 million loss on derivative instruments, compared with the 2007 third quarter loss of $338,000, and a stock-based compensation expense of $619,000 versus the 2007 period’s $130,000.
“The results reported for the third quarter of 2007 represent substantial accomplishments realized by the company during 2007,” CEO Clarence A. Davis said in an after-market statement last night. “The reorganization of our operational structure, coupled with the improved delivery of our systems, has produced substantially higher revenues and positive operating cash flows.
“Our next focus is on expanding a professional sales organization and pursuing strategic relationships to take advantage of the expanding market for automated enforcement services and other security applications,” Davis said.
Nestor Inc. (Nasdaq: NEST), the parent of Nestor Traffic Systems, is a provider of video-, photo- and LiDAR-based traffic-enforcement systems and services to state and municipal governments. For more information, visit www.nestor.com.