Redflex traffic up in US

Melbourne-based digital camera maker Redflex Traffic Systems has signed six new US contracts for red light cameras worth a total $35.8 million -- the company's largest ever deal.

Redflex Traffic Systems, a wholly-owned subsidiary of ASX-listed Redflex Holdings, said it had won six new traffic enforcement camera deals in the US state of California.

The deals were collectively worth $25 million in the first phases and $10.8 million in the second phases. Each contract was for a five-year term including two one-year options, it said.

Bruce Higgins, CEO and president of Redflex Traffic Systems, said the total $35.8 million deal was the company's largest-ever win but came on top of a very successful December.

'Since 25 November, we have announced 13 new contracts with cities for photo enforcement and extensions to another two existing contracted cities. The total value of these contracts is approximately $80 million,' Higgins said in a statement to the ASX.

California was a burgeoning market for Redflex's digital traffic cameras and systems, with sales there expected to help drive a $9.6 million capital raising for Redflex in the next 12 months, he added.

The new deals were for 14-20 digital traffic camera systems in the Los Angeles City of Lynwood, 10-20 systems in the Los Angeles City of Santa Clarita, eight systems for the California City of Ridgecrest, eight-18 systems in the California City of Escondido, 10 systems in the California City of Del Mar and 10 systems in the Los Angeles City of Maywood.

'The contract wins are all important as they increase our efficiency and economies of scale in the important, rapidly-growing California market,' Higgins said.

Redflex Traffic Systems has contracts with 52 cities in six nations. Forty-three of those deals were with US cities, the company said in a statement.

Redflex Holdings also includes digital switching specialist Redflex Communications Systems (RCS), a complementary firm to Redflex Traffic Systems. Both companies do their own systems engineering, system integration and R&D.

RCS systems have been used by the Australian army, civil aviation, NSW State Rail and in airports in Dubai, Fiji, Mauritius and Bahrain, the company said.