UPDATE: Wedbush Lowering Price Target On Image Sensing Systems (ISNS)

Wedbush is maintaining its Outperform rating on shares of Image Sensing Systems

, but it is lowering its price target to $15 from $16. In a note to clients, Wedbush writes, "We were disappointed by the weak Q1 pre-announcement attributed to soft demand in RTMS (radar) products and Asia, seasonally weak winter, management transitions, and lumpy revenue model. That said, we believe that fundamentals of the ITS market remain intact and ISS, given its unique portfolio of assets, is poised to benefit and we would be buyers on weakness. Lighter than expected Q1, but management expects a return to traditional levels. While ISS does not provide quarterly guidance given lumpiness in the revenue model (e.g. solid upside in Q4), management expects Q1 revenue of $5.8-6.2 million. This compares to our estimate of $7.6 million and consensus estimate of $7.9 million. Management expects Q1 GAAP EPS of $(0.10) - $(0.19), and non- GAAP EPS of $(0.05) - $(0.14). This compares to our and consensus estimates for GAAP EPS of $0.12 and non-GAAP EPS of $0.18. We expect additional color and commentary when ISS reports final Q1 results on 5/5/2011 AMC. We note that management expects a return to traditional levels of demand." Shares of ISNS are down $1.30 to $12.21, a loss of 9.6% so far this morning.