valuation, page-11

re: valuation---for redlight27 redlight, yes that's the Minneapolis article I saw, as I said it's only red light cameras, not speed cameras, at present, you can imagine the numbers when/if they throw the switch to turn on the speed side of the system as well.

Winning a major city such as L A or Houston is mainly a PR benefit as due to the large number of installations usually required and the muscle of a big city the price is usually a fixed monthly amount per approach. Add in a desperate vendor like Nestor and their quote can be almost a loss maker, Nestor is rumoured to have quoted not much over $4K per approach in L A, that's almost red ink territory. L A is still not decided, the more savvy councils tend to go for the higher Redflex quote as they know the Redflex technology will result in a lot more citation $s for them in the long run.

Actually for sheer profitability I reckon a mid size city requiring red light and speed cameras would be much more profitable than a low ball red light camera only contract like L A, something like Knoxville in Tennessee. or some of the other large Texas cities or even Albuquerque, all of which require combos plus other fixed speed and speed vans.
Although I must admit that Chicago is a cracker contract for Redflex, this was in the main due to a contract that was very well constructed by the Redflex guys.

The really good money is in the mid size cities which Redflex has concentrated on, that plus the smaller cities as long as the smaller cities can be won at very good rates.

Poor Nestor, the only contracts they have won recently have been at very low rates, these are long term 5 year contracts which, added to their present position and the Transol mess, can only result in their pile of red ink getting bigger.