LoJack Corp. (NASDAQ: LOJN – News) may have seen some of the first positive news in some time, which will allow the company to migrate away from being reliant solely upon tracking autos at a time where consumers are cutting whatever expenses they can cut without disrupting their lives. The FCC has granted LoJack’s petition from back in 2005 which will allow it to use the nationwide frequency used to assist in stolen vehicle recovery for a more diverse tracking and recovery applications in previously untapped or at least have not been deeply penetrated.
The new approved use will include missing people at risk, individualsof interest for law enforcement, lost/stolen cargo, and even can beused to track hazardous materials. The FCC has also granted requeststhat will facilitate the transition of LoJack’s network from widebandto narrowband, which will be completed by 2019.
The company may be able to immediately see benefits from thisapproval. LoJack acquired the assets of Locator Systems in April 2008,to help police locate and rescue missing persons with Alzheimer’s,Autism and other disabilities. Just last month it boosted its stake to60% in Supply Chain Integrity, a company which reduces and manages riskthroughout the supply chain from theft, terrorism, and naturaldisasters.
The hope here is that this will reignite stagnant revenues. Therevenue growth of roughly 12% in 2006 slowed to roughly 5% in 2007; andanalysts are expecting revenues for both 2008 and 2009 to be under the2007 and 2006 levels. How much this will add is dependent upon manyissues, but the company may soon start to be known for other itemsbesides auto tracking.
Shares of LoJack are up roughly 5% right after the open at $7.55. Its 52-week range is $5.43 to $20.25.
Jon C. Ogg
September 3, 2008
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