Lojack reported a profitable December quarter as auto sales picked up. And it plans to offer new, more aggressive programs to car dealers who are looking for new areas of profit.
CEO Richard Riley told analysts on a conference call Wednesday, there’s growing confidence that “the worst is finally behind us,” in auto sales and as a result the Lojack is shifting the way it does business with auto dealers.
It aims to make it easier for consumers to finance their Lojack purchase at the dealer through a new credit facility. And it plans to offer programs for Lojack in used cars. It is also working on volume buying programs for auto dealers.
Riley said dealers are dealing with reduced margins on new cars so they are looking for profitability elsewhere including products such as Lojack.
As a sign the economy is shifting for the better, Lojack said it will add back benefits for its employees this year and return to larger advertising outlays.
But it doesn’t expect the car market to return to the levels of 16 to 17 million annual car sales any time soon.
LoJack also expects to expand its SafetyNet program that provides technology for finding and rescuing individuals with conditions like autism or dementia. SafetyNet is currently offered in a few cities such as Philadelphia.
For Q4, Lojack reported U.S. revenues were up by 8 percent from the year ago quarter. Revenue for the full North America increased slightly less, by 5 percent to $23 million, up from $21.9 million for the year ago quarter.
Source: Lojack, CEoutlook