Australian Smart Cities solutions provider SenSen Networks Limited (ASX: SNS) has won an A$2.5 million contract to provide a Licence Plate Recognition System to the City of Las Vegas.
This Contract provides for the furnishing, installation and support of a complete Licence Plate Recognition System for the City of Las Vegas Parking Services Division.
Commencing immediately, the contract initially covers the City’s purchase of two SenFORCE mobile parking enforcement units and 80 Gemineye Mobile units for use in City enforcement vehicles; the system will also be used by City officers patrolling streets and car parks on enforcement vehicles, Segways and Go4 scooters. In addition, associated software and services are included in the Contract.
SenSen CEO, Dr Subhash Challa said the City of Las Vegas attracts over 42 million visitors annually. It has a population of more than 650,000 residents while the larger Las Vegas metropolitan area has a population of more than two million.
He said SenSen’s technology will assist in keeping roads safe and congestion free through automating the enforcement of hundreds of bylaws associated with regulating traffic and parking on city streets.
“SenSen is extremely proud to be working with the City of Las Vegas. Las Vegas is a flagship US city and SenSen is excited to be providing its world-leading AI and video analytics expertise in improving the amenity of the City’s citizens by helping reduce traffic congestion and efficiently manage its parking.
“Shareholders should also note the multi-year SaaS nature of this contract revenue.
“SenSen expects its operations will continue to grow in the US as more cities seek Smart City intelligent transportation solutions.”
There are no material conditions that need to be satisfied prior to the commencement of the Contract and SenSen will earn a total of US$1,584,500 (~A$2.5M) over the five-year term including:
US$397,600 (~A$638,000) for the systems, software and commissioning of the units, which will be paid in a milestone delivery-based schedule from May to August 2020; and
US$237,380 (~A$376,000) annually in recurring revenues and fees for the software licence, hardware maintenance and support services under the five-year term of the contract. This Software as a Service (SaaS) revenue will be paid in equal monthly instalments of US$19,781 (~A$31,000) over five years (60 payments).