Q-Free preparing for new projects

Q-Free has announced revenues of US$21.11 million during the first quarter 2012 compared to US$29.66 million in the corresponding quarter in 2011, while order intake came in at $44.29 million, $6.45 million more than in previous quarter and $2.96 million more than in Q1-2011, reflecting, the company says, that its general optimism regarding demand is well grounded.
April 27, 2012 Read time: 3 mins
108 Q-Free has announced revenues of US$21.11 million during the first quarter 2012 compared to US$29.66 million in the corresponding quarter in 2011, while order intake came in at $44.29 million, $6.45 million more than in previous quarter and $2.96 million more than in Q1-2011, reflecting, the company says, that its general optimism regarding demand is well grounded.

Most important short term is the development in the Jakarta project which Q-Free signed at the end of October, 2011, with PT Rin for the delivery of an electronic law enforcement (ELE) system for Jakarta (DKI) and greater area of Jakarta (Bodetabek). Based on Q-Free's latest tolling solutions, it will be used by the local police for controlling traffic in Jakarta. The purpose of the system is to provide a more efficient system for registration and control of registered vehicles in Indonesia and will improve the efficiency of the local police to enforce stolen vehicles, fake number plates and security related incidents. The potential contract value is some US$167 million for road side infrastructure, operational back office, tags and a service and a maintenance contract for six years. More than half of the contract value is related to delivery of tags.

Although the financing for the project is not concluded yet, Q-Free reports that good progress has been made. 5320 GIEK has approved to give guarantees for the project and 5321 Eksportfinans and Q-Free’s client are currently negotiating the loan agreement. It is expected that this will be signed during May 2012.

The $44.29 million order intake in the quarter is comprised of congestion charging infrastructure in Gothenburg, Sweden, a tag frame agreement with Spanish operator Abertis, AutoPASS contracts in Norway, an access control contract with Brisbane Airport in Australia, a tag order from 3843 Via Verde, Portugal, and other smaller product orders from various markets. The Group’s order backlog totalled US$103.75 at the end of the first quarter 2012 compared to $80.57 at the end of the fourth quarter 2011.

“Our order intake this quarter indicates the high market activity,” says Q-Free CEO Øyvind Isaksen. The company communicated last quarter an addressable opportunity pipeline of US$872 million - $2.62 billion globally for the next three years, and Isaksen says he sees no reasons to revise this. ”We are working on company changing projects and believe it is just a matter of time before breakthrough in new markets.”

The company targeted US$174.42 million in revenue with EBIT level exceeding 10 % for 2012. As the financial close for the Jakarta project is somewhat delayed, the key assumption for the year target is not met. Even so, Q-Free says it still aims to be in the range of the target, depending on kick-off of the Jakarta project in May and conclusion on other projects in the first half of the year.
Parking & Access Control Charging, Tolling & RUC Enforcement

For more information on companies in this article

Related Content

  • Connected-car security market expected to reach US$759 million in seven years
    September 30, 2016
    With nearly 112 million vehicles now connected around the world, the global market for automotive cybersecurity is expected to grow exponentially – to US$759 million in 2023, according to a new report, Automotive Cyber-security and Connected Car, from IHS Automotive, part of business information provider IHS Markit. Connected cars are defined as those that have a connection to the internet, through telematics, an onboard modem or a paired device in the vehicle, such as a mobile phone or other device. One
    Read More
  • Significant Middle East enforcement order for Vitronic
    June 6, 2013
    Vitronic is to supply police forces in the Gulf region with 300 fixed PoliScan speed enforcement systems, including service and maintenance. The order is for the latest generation PoliScan speed LIDAR–based enforcement systems with high-resolution colour cameras. Delivery of the first fifty systems is scheduled for the end of July.
    Read More
  • Management changes at Iteris
    July 16, 2014
    Iteris has announced that it will require additional time to complete its audit for the fiscal year ended 31 March 2014, primarily due to the time necessary to complete the review of certain complex, multi-element contracts, but the company is continuing to work with its auditors to complete the fiscal 2014 audit but. The company may have a material weakness in its internal controls over financial reporting related to certain of these multi-element contracts, but the company has not yet completed its fin
    Read More
  • Chile opts for Q-Free’s free flow tolling
    August 25, 2015
    Q-Free is to supply its single gantry multi lane free flow tolling system to Sociedad Concesionaria Vespucio Norte Express, Chile. The order, valued at around US$4 million, is for the design and installation of the renewal of an existing electronic toll collection system in Santiago and includes an initial three-year service and maintenance period, which the customer has the option to renew for a further seven years. Delivery is due to be completed by the end of 2017. “We are pleased to receive this o
    Read More

Highlighted Content