Red Light Camera Vendor Redflex: America’s a ‘Low/no-Growth Market’
The chairman of the major red light camera vendor, Redflex, has told the company’s investors that North America is a “low/no-growth market,” and that the company continues to face “potential legal risk as a result of the investigative findings.”
Redflex has been under fire in particular as a result of its Chicago contract that resulted in a federal corruption case. In October 2014, one of the three defendants in that case pleaded guilty, which marked the first guilty plea in a high-level case involving Redflex.
Since losing the Chicago contract as a result of this corruption scandal, Redflex’s 2013 pre-tax profits in its North American division (its corporate parent is an Australian company) have plummeted over 33 percent—from $3.4 million in the first half of 2013 to $2.28 million in the second half. The company announced that it lost $1.2 million during its fiscal year ending June 30, 2014. At present, the company operates in California, New Jersey, Florida, Alabama, and Virginia, among other states.
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