Image Sensing Systems (ISNS) develops and markets software-based computer enabled detection products and solutions for the intelligent transportation systems industry, explains Bill Mathews, editor of The Cheap Investor, which focuses on microcap and turnaround stocks under $5 a share.

Its video and radar processing products are used in traffic, security, police, and parking applications, such as intersection control, highway, bridge and tunnel traffic management, venue security, entry control, LPR, and traffic data collection.

It offers various vehicle and traffic detection products, such as Autoscope video systems and RTMS radar systems that convert sensory input collected by video cameras and radar units into vehicle detection and traffic data used to operate, monitor, and enhance the efficiency of roadway infrastructure.

The company sells its products to federal, state, city, and county departments of transportation, port, highway, tunnel, and other transportation authorities.

Image Sensing Systems has a fair balance sheet with about $1.7 million ($0.33 per share) in cash, a book value of $1.35 per share and no debt.

Company has sold over 135,000 products in 60 countries in 33 years, sales of its video and radar detection products, which it sells to municipalities, could increase dramatically due to threat of terrorism.

With a market cap of only $18.5 million the Company could become an acquisition target. If Image Sensing Systems continues to grow its revenues and earnings, it has the potential to move at least 50% from this low point.

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