I think the report looks very good and is what was expected. Installations are up. We knew this because of the contracts won during preceeding period. We knew the second half was going to be stronger than the first because of the corresponding announcements.
There have been a considerable amount of announced contracts in the last 6 months that are not booking revenue yet. The only thing that shows is all the expenses associated with winning these contracts.
Expenses have not gotten out of control like we feared.
Coms is now refered to as something like 'asset earmarked for sale.' Or whatever. They realize they need to concentrate on rlc and speed. oh yeah, and railroad crossing. Anyone know of another company out there offering this option? Really shows a vendor looking to solve all of a cities traffic violation needs.
Can anyone tell us how how many years they are depreciating these systems?
The climate for rlc and speed in the US is very different from where it was just 12 months ago.
The only thing I worry about is the unique nature of the businesss. The depreciations and expenses associated with winning contracts and installing them before they generate revenue give a distorted view of the company. Not sure if the street will value this one correctly.
As more cameras get installed economies of scale will really kick in with this company.
We are not through it all yet, but it is not hard to see the solutions of many of the problems of the past year. I am excited about the next few years.
RDF Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
