SOURCE: Nestor, Inc.

May 17, 2005 06:30 ET

Nestor, Inc. Reports First Quarter Results

Achieving Record Quarterly Revenues for Traffic Safety Solutions

PROVIDENCE, RI -- (MARKET WIRE) -- May 17, 2005 -- Nestor, Inc. (OTC BB: NESO), a leading provider of video-based traffic safety solutions and services, released today results for our first quarter of 2005. Revenues for the quarter ended March 31, 2005 increased by $753,000, or 69%, to $1,852,000 compared with revenues of $1,099,000 for the same period in 2004. Operating expenses increased $1,666,000, or 80%, to $3,748,000 for the first quarter of 2005 compared with $2,082,000 for the same period in 2004. Net loss for the first quarter of 2005 was $1,910,000, or $0.10 per share, compared with $1,033,000, or $0.06 per share, for the same period in 2004, excluding a gain on debt extinguishment of $508,000 in the 2004 quarter. The net loss for the 2004 quarter including the debt extinguishment gain was $525,000, or $0.03 per share. We had cash and marketable securities of $4,517,000 as of March 31, 2005 compared with $5,247,000 on March 31, 2004. More details regarding our results for our first quarter of 2005 may be found in our Quarterly Report on Form 10-Q filed with the Securities and Exchange.

William B. Danzell, Chief Executive Officer of Nestor, Inc., stated, "We believe 2005 will be Nestor's transition year to a solid and growing business base. The first quarter reflects higher expenses as we worked to finalize the development of two technologically superior speed detection products; to increase our capacity to deliver our products at an accelerated rate; to expand both the market for automated enforcement of traffic laws around the country and Nestor Traffic Systems, Inc.'s market penetration; and to defend our intellectual property rights. We enter the second half of this year with three technologically superior products for the automated enforcement of traffic laws and with good marketing momentum around the country. Recent accomplishments, such as our first program award in Canada as well as Cranston, Rhode Island's pilot program deploying our innovative mobile speed enforcement system, reflect some of the progress being made. We believe there will be further evidence of our accelerating growth in the upcoming quarters."

Nestor, Inc. through our wholly owned subsidiary, Nestor Traffic Systems, Inc., provides automated traffic safety solutions to state and municipal governments. Our goal is to deliver effective solutions for intersection and roadway safety. We currently offer CrossingGuard®, a turnkey solution which helps customers reduce red light running and intersection collisions through automated enforcement technology and services, and PoliscanSpeed, a laser-based photo speed enforcement system designed to reduce the number of speeding vehicles on public roadways, including school zones and construction zones. We believe our technology, products and services offer the most comprehensive and effective intersection and roadway safety solutions.

Our patented CrossingGuard® system uses multiple time-synchronized videos to capture comprehensive evidence of red light violations. CrossingGuard is the only available system that delivers synchronized front and rear videos, providing officials with the full context of each violation, enabling more accurate, objective decisions. Additionally, CrossingGuard offers customers a unique Collision Avoidance™ safety feature that can help prevent intersection collisions. Our CrossingGuard services include: intersection evaluation, equipment installation, user training and support, citation issuance and payment processing, and account management.

We are the exclusive North American distributor for Vitronic's PoliscanSpeed, the industry's only scanning LIDAR, capable of tracking multiple vehicles in multiple lanes, simultaneously. An industry first, the scanning LIDAR mobile speed enforcement system is an innovative solution for digital speed detection and image recording. The scanning capability of the PoliscanSpeed system minimizes the ambiguity and measuring errors associated with conventional photo speed enforcement systems.

CrossingGuard® is a registered trademark of Nestor Traffic Systems, Inc. PoliscanSpeed is a registered trademark of Vitronic. For more information, call (401) 434-5522 or visit www.nestor.com.

Statements in this press release about future expectations, plans and prospects for Nestor, including statements containing the words "expects," "will," and similar expressions, constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. We may not achieve the plans, intentions or expectations disclosed in our forward-looking statements and investors should not place undue reliance on our forward-looking statements. Actual results may differ materially from those indicated by such forward-looking statements as a result of various factors, including: market acceptance of our products, competition, patent protection of our technology, and other factors discussed in Exhibit 99.1 to our most recent quarterly report on Form 10-Q and Risk Factors That May Affect Our Results in our most recent Annual Report on Form 10-K filed with the SEC. Investors are advised to read Nestor's Annual Report on Form 10-K and quarterly reports on Form 10-Q. The forward-looking statements included in this press release represent our current views and we specifically disclaim any obligation to update these forward-looking statements in the future.

Contact Information

  • CONTACT:
    Nigel P. Hebborn
    Executive Vice President
    (401) 434-5522 ext. 714
    www.nestor.com