The City of Manteca is considering contracting with Nestor Traffic Systems for a series of "red light cameras." A public hearing on the issue is scheduled for Tuesday, 2 Sep 08 at 7pm at "city hall."
Here's an article that says they are "beset with losses." And they are hugely in debt. And that's from April of this year. Last year the firm was delisted from the NASDAQ. And evidently, since then things have only gotten worse -- the stock price dropped from 22 cents per share last May to 8 cents a share today. One of the principles has left the board of directors and there's "no plans to replace him."
From the looks of the balance sheet, they have suffered huge losses and the losses continue. They might be on target to only lose 6 cents a share this year, which is good 'cause the stock is only worth 8 cents a share!
One of the statements reads:
The opinion of our auditors ... and as further discussed by management ... contained an unqualified opinion ... regarding our substantial net losses in recent years which raised doubt regarding the Company's ability to continue as a going concern. ... We continue to seek additional sources of equity and debt financing to fund system installations ... however, there can be no assurance that the funds will be available on terms acceptable to us, if at all.
Clarence A. Davis, Chief Executive Officer of Nestor, Inc., stated the following: "Although we are disappointed that the market has not yet recognized the dramatic advances the Company has made, we remain confident...."
Evidently the City of Santa Fe Springs was one of those that hasn't yet recognized the dramatic advances: They terminated their contract with Nestor saying "it was not satisfied with the service provided by the Rhode Island-based Nestor Traffic Systems..." and "the council was dissatisfied with the company," said City Manager Fred Latham. Areas of concern included customer service, experience and accessibility, he said.
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