SenSen Networks Ltd (ASX:SNS) has won a $2.5 million contract with the City of Las Vegas for the furnishing, installation and support of a complete Licence Plate Recognition System for the city’s Parking Services Division.
SenSen’s proprietary AI and video analytics software won the competitive tender process, showcasing Gemineye, a smartphone-based AI solution, and SenFORCE, a fully automated and mobile by-law enforcement solution.
SenSen chief executive officer Dr Subhash Challa said the company was extremely proud to be working with the City of Las Vegas.
He said: “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 Software as a Service (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.”
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, for city officers patrolling streets and car parks on enforcement vehicles, Segways and Go4 scooters.
This is the largest commercial implementation of Gemineye by a single SenSen customer since the product’s launch a year ago
SenSen will earn a total of US$1,584,500 (around A$2.5 million) over the five-year term of the contract, including:
- US$397,600 (around 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 (around 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.
Revenue will be paid in equal monthly instalments of US$19,781 (around A$31,000) over five years, totalling 60 payments with the first milestone payments expected this half-year.
Annual recurring revenue of around AU$376,000 from this contract was not included in recent SenSen operations update financial commentary and generates upside to the financial guidance commentary.
SenFORCE is attached to a patrol car and is capable of reading number plates at normal driving speed.
Innovate Vegas program
Las Vegas is charting a course to become a Smart City by 2025 and SenSen is assisting with its intelligent transportation systems and smart technology.
Under the ‘Innovate Vegas’ program, the City of Las Vegas has already invested in smart infrastructure and is working quickly to create a place where intelligent transportation systems and smart technology operate seamlessly to provide services efficiently to the 650,000 residents and 42 million visitors.
The city is seeking to improve the interoperability among all public service sectors including transportation, energy, public works, facilities, and public safety/law enforcement through open-source data sharing, real-time data analytics and decision support.
City function crucial
The company believes this is a highly significant outcome during the current challenging period affected by COVID-19, as it demonstrates the critical importance of cities and communities continuing to function efficiently and deploying assets equitably for citizens
This contract also builds on SenSen’s expanding footprint in the US following the ongoing collaborative services agreement with Chicago Parking Meters, LLC (CPM) to improve parking space management efficiency in the City of Chicago.
Additionally, the company is in active discussions with additional US city customers and distribution partners.