Rekor Discover(TM) Broadens Reach in Western U.S. with New Expansion
Rekor Systems, Inc. (NASDAQ: REKR) has secured a pay-for-data agreement with the New Mexico Department of Transportation for the deployment of its cutting-edge Rekor Discover platform to conduct vehicle class, count, and speed data reporting for a phase one statewide deployment. The agreement follows the Company's standard MSRP pay-for-data pricing and will commence monthly payments as each system is brought online. The AI powering Rekor Discover was a critical factor in this partnership, as it can reliably capture traffic analytics in New Mexico's varied climate. Rekor's solution replaces traditional, outdated traffic analysis methods, providing highly accurate traffic data, and promoting transparency and effectiveness in the U.S. highway system.
The agreement between Rekor Systems and the New Mexico Department of Transportation (NMDOT) for the provision of traffic data services is a strategic move that can have a positive impact on Rekor's financial performance. The adoption of Rekor's Urban Mobility division's Rekor Discover™ platform by a state agency for federally mandated traffic data reporting indicates a growing market acceptance of Rekor's technology. This could potentially lead to an increase in the company's market share within the transportation analytics sector.
From a market research perspective, this partnership not only validates Rekor's technology but also showcases its competitive advantage in terms of accuracy and reliability in diverse climate conditions. The shift from traditional traffic analysis methods to Rekor's AI-powered solutions could signify a broader industry trend towards smarter, more efficient roadway intelligence systems. This trend may result in increased demand for Rekor's services, which could subsequently drive revenue growth and enhance shareholder value.
Rekor's pay-for-data pricing model with the NMDOT is indicative of a scalable and recurring revenue stream, which is favorable for the company's financial health. The transition from one-time sales to a subscription-based model can lead to more predictable cash flows and potentially improve the company's valuation metrics. Furthermore, the monthly payments by NMDOT as each system goes online will likely contribute to a steady increase in Rekor's revenue, which can be an attractive point for investors.
It's important to analyze the gross margins associated with this service, as the costs of deploying and maintaining the Rekor Edge Series units will impact profitability. If Rekor can manage these costs effectively, the agreement could lead to an improvement in net income margins over time. Investors should monitor future financial statements for updates on the performance of this segment and its contribution to the company's overall financial position.
The technical aspects of Rekor's Edge AI technology and its ability to withstand New Mexico's varied climate conditions underline the company's innovation in roadway intelligence systems. This technology represents a significant upgrade from traditional traffic analysis methods, which are prone to failure and can cause traffic disruptions. The Rekor Edge Series units' side-of-roadway operation and real-time data transmission capabilities enhance safety and reduce the environmental impact associated with older technologies.
As a technology analyst, it is noteworthy that Rekor's solution can provide continuous, accurate traffic data, which is essential for evidence-based decision-making and the overall effectiveness of the U.S. highway system. This deployment could serve as a case study for other states considering modernizing their traffic data collection methods, potentially leading to further market expansion for Rekor's products and services.
01/30/2024 - 07:30 AM
Rekor Clinches Pay-For-Data Agreement with New Mexico DOT for Class, Count, and Speed Data Services
COLUMBIA, MD / ACCESSWIRE / January 30, 2024 / Rekor Systems, Inc. (NASDAQ:REKR) ("Rekor" or the "Company"), a leader in developing and implementing state-of-the-art roadway intelligence technology, today announced its Urban Mobility division's cutting-edge Rekor Discover™ platform has been chosen by the New Mexico Department of Transportation (NMDOT) to conduct Federal Highway Administration (FHWA) 13 bin vehicle class, count and speed data reporting for a phase one statewide deployment. Each of the initial 40 systems features Rekor Edge Series units utilizing advanced Edge AI to aggregate, transform, and securely deliver holistic traffic insights in real-time to Rekor Discover™. This agreement follows the Company's standard MSRP pay-for-data pricing and the NMDOT will commence monthly payments as each system is brought online.
A critical deciding factor that led to this partnership is the AI powering Rekor Discover™. The ability to capture traffic analytics reliably and precisely throughout all of New Mexico's varied climate, ranging from snowy conditions to extreme heat, was a key requirement met by Rekor's technology. Rekor's solution replaces traditional, outdated traffic analysis methods such as rubber tubes and embedded roadway sensors in a noteworthy leap forward. These legacy technologies are prone to failure, create traffic disruptions, contribute to pollution, and put workers in danger as they deploy analog technology directly onto roadways.
Traditional data collection methods are also vulnerable to weather-related disruptions, many of which have experienced significant service outages. Rekor Edge Series systems, on the other hand, operate at the side of the roadway and seamlessly transmit key insights into the Rekor Discover™ platform, eliminating the risks mentioned above while delivering highly accurate traffic data. Rekor Edge Systems, combined with the Rekor Discover™ platform, deliver technology resilient to weather-related changes, ideally suited for statewide deployment in New Mexico, providing a reliable and continuous feed of federally required traffic data.
The required monthly data reporting from state Departments of Transportation (DOTs) to the FHWA enables evidence-based decision-making, promotes transparency, and contributes to the overall effectiveness of the U.S. highway system. Federal policy requires state DOTs to report traffic data to the FHWA for several important reasons:
Assessing Highway System Health : The FHWA uses this data to evaluate the condition and performance of the national highway system. By collecting information from state DOTs, the FHWA gains insights into road conditions, traffic flow, and infrastructure health. This assessment helps inform decisions about funding allocation, maintenance priorities, and investment strategies for highways across the country .Informed Policy Decisions : The data collected by state DOTs contributes to informed policy decisions at both federal and state levels. It allows policymakers to understand transportation trends, identify areas for improvement, and develop effective strategies to enhance safety, efficiency, and sustainability.Transparency and Accountability : By sharing traffic data with the FHWA, state DOTs promote transparency in the transportation sector. The public can access this information, including local governments, private businesses, and the media. Transparency fosters accountability and ensures that decisions related to transportation infrastructure are made based on reliable data.Monitoring Road System Performance : The FHWA licenses the National Performance Management Research Data Set (NPMRDS), which includes traffic data. State DOTs and Metropolitan Planning Organizations (MPOs) use this dataset to monitor and report on road system performance. It helps track metrics such as travel times, congestion, and reliability ."In a digital age where innovation and accuracy are paramount, the New Mexico Department of Transportation's adoption of Rekor Discover™ marks a significant milestone," said Robert A. Berman, Chair and CEO of Rekor Systems. Berman continued, "This partnership is especially noteworthy as it originated from a proof of concept (POC). It has now evolved into a revenue-producing contract, a significant achievement in a state where Rekor Systems previously had no established relationships. This successful transition from a POC to a profitable contract not only highlights the groundbreaking capabilities of Rekor Discover™ but also demonstrates the trust and confidence that state agencies are willing to invest in our technology, even in new markets. Similar to our success in New Mexico, we expect other states with existing POCs to transition into revenue-producing contracts."
Benefits of Rekor Discover™
Automate accurate roadway intelligence: Artificial intelligence fully automates the accurate and precise capture of traffic data, reducing errors and manual intervention allowing transportation agencies to focus on other critical tasks.Deploy safely and without disruptions : Rekor's Edge systems are deployed quickly and easily on the side of the road without requiring workers to enter unsafe conditions, cut into the pavement, or disrupt traffic.Gather ground truth in all conditions : Built to function in adverse weather conditions and various traffic situations, Rekors systems are ready for a wide variety of rugged and changing environments.Always on and always up-to-date : Rekor's systems are remotely monitored through a connected operations dashboard to perform necessary health checks as well as seamless software and firmware updates, optimizing up-time and incorporating the latest in AI technology.For more information about Rekor Systems and its transformative AI traffic data collection solution, please visit the Rekor Discover webpage.
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Forward-Looking Statements This press release and its links and attachments contain statements concerning Rekor Systems, Inc. and its future expectations, plans, and prospects that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the impact of Rekor's core suite of AI-powered technology and the size and shape of the global market for ALPR systems. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements that are not statements of historical fact may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue," by the negative of these terms or by other similar expressions. You are cautioned that such statements are subject to many risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the statements regarding the use of proceeds from the sale of the Series A Notes in the offering and the risks that actual circumstances, events or results may differ materially from those projected in the forward-looking statements, particularly as a result of various risks and other factors identified in our filings with the Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made and are based on management's assumptions and estimates as of such date. We do not undertake any obligation to publicly update any forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events, or otherwise.
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SOURCE: Rekor Systems, Inc.
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What is the pay-for-data agreement secured by Rekor Systems, Inc. (REKR)?
Rekor Systems, Inc. (REKR) has secured a pay-for-data agreement with the New Mexico Department of Transportation for the deployment of its cutting-edge Rekor Discover platform to conduct vehicle class, count, and speed data reporting for a phase one statewide deployment.
What factor led to the partnership between Rekor Systems, Inc. and the New Mexico Department of Transportation?
The AI powering Rekor Discover was a critical factor in the partnership, as it can reliably capture traffic analytics in New Mexico's varied climate, which was a key requirement met by Rekor's technology.
What are the benefits of Rekor's solution over traditional traffic analysis methods?
Rekor's solution replaces traditional, outdated traffic analysis methods, providing highly accurate traffic data, promoting transparency, and contributing to the overall effectiveness of the U.S. highway system.
Why is the monthly data reporting from state Departments of Transportation (DOTs) to the FHWA important?
The monthly data reporting enables evidence-based decision-making, promotes transparency, and contributes to the overall effectiveness of the U.S. highway system.
