SOURCE: Nestor, Inc.

November 15, 2005 06:30 ET

Nestor, Inc. Reports Third Quarter Results

PROVIDENCE, RI -- (MARKET WIRE) -- November 15, 2005 -- Nestor, Inc. (NASDAQ: NEST), a leading provider of traffic enforcement solutions and services, released today results for our third quarter of 2005. Revenues for the quarter ended September 30, 2005 increased by $81,000, or 4%, to $1,914,000 compared with revenues of $1,833,000 for the same period in 2004. Net loss for the third quarter of 2005 was $2,792,000, or $0.15 per share, compared with $869,000, or $0.05 per share, for the same period in 2004. For the nine-month period ended September 30, 2005, revenues increased by $1,696,000, or 38%, to $6,180,000 compared with revenues of $4,484,000 for the same period in 2004. Net loss for the nine-month period of 2005 was $7,027,000, or $0.37 per share, compared with $3,022,000, or $0.17 per share, for the same period in 2004, excluding a gain on debt extinguishment of $508,000 in the 2004 nine-month period. The net loss for the 2004 nine-month period including the debt extinguishment gain was $2,514,000, or $0.14 per share. We had cash and cash equivalents of $3,873,000 as of September 30, 2005 compared with $5,850,000 on December 31, 2004. More details regarding our results for our third quarter of 2005 may be found in our Quarterly Report on Form 10-Q filed with the Securities and Exchange on November 14, 2005.

William B. Danzell, Chief Executive Officer of Nestor, Inc. stated, "We have continued the positive accomplishments noted in our second quarter announcement including signing two more CrossingGuard contracts, with the Cities of Davis and Murrieta in California, in August and October, respectively. We also added up to eight additional cities to our red light customer base with the closing of the acquisition of certain Transol USA assets on August 31, 2005. We are currently in the process of integrating those former Transol customers that approve into our back office processing system and evaluating ways to improve the program provided to these customers. Davenport, Iowa, a former Transol customer, has agreed to add our "speed-on-green" solution at current red light enforced approaches, in conjunction with an upgrade to the CrossingGuard red light technology. Also, Akron, Ohio has become our first customer for our mobile PoliScanspeed product and has deployed two units in November, with an additional two units to be deployed.

Nestor, Inc. through our wholly owned subsidiary, Nestor Traffic Systems, Inc., provides automated traffic enforcement 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 trademark of Vitronic GmbH. For more information, call (401) 274-5658 or visit www.nestor.com.

Statements in this press release about future expectations, plans and prospects for Nestor, including statements containing the words "believe," "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 our most recent quarterly report on Form 10-Q and 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