Profile: LoJack Corp (LOJN.OQ)
12 Dec 2013
LoJack Corporation (LoJack) is a global provider of technology products and services for the tracking and recovery of valuable mobile assets and people at risk of wandering. The Company’s integration with law enforcement agencies in the United States, together with its technology and radio frequency (RF), network provide a means for the tracking and recovery of stolen vehicles, motorcycles, construction equipment, cargo and people at risk. As of December 31, 2011, LoJack products were operational in 28 states and the District of Columbia in the United States, Canada and 32 other countries internationally. LoJack operates through three segments: North America, International and All Other.
The Company’s North America segment is comprised of its domestic operation, which sells products that operate in 28 states and the District of Columbia in the United States, as well as Boomerang, a provider of stolen vehicle recovery products in Canada. Its International segment sells products, licenses or owns and operates LoJack vehicle recovery technology in 32 countries and territories throughout Europe, Asia, Africa and Latin America and through its wholly owned subsidiary in Italy, LoJack Italia, SRL, or LoJack Italia. All Other segment includes LoJack SafetyNet and SC-Integrity, Inc. (SCI), which are providers of technology for the tracking and rescue of people at risk of wandering, or people at risk, and SC-Integrity, Inc., or SCI, which provides technology for the tracking and recovery of valuable cargo and business information.
The LoJack Stolen Vehicle Recovery System
The LoJack Stolen Vehicle Recovery System (the LoJack System) is based on RF technology. In the United States, the LoJack System consists of a Registration System, which the Company maintains and operates; a Sector Activation System (SAS) and Vehicle Tracking Units, collectively the Law Enforcement Components, each operated by law enforcement officials, and a LoJack Unit, which is installed in customer’s vehicles. The LoJack System is designed to be integrated with existing law enforcement computer systems and telecommunication systems and procedures. If a vehicle equipped with a LoJack Unit is stolen, its owner reports the theft to the local police department. If the theft is reported in a jurisdiction where the LoJack System is operational, a radio signal is automatically transmitted to the LoJack Unit in the stolen vehicle, activating its tracking signal. The Vehicle Tracking Unit, installed in police patrol cars and aircraft throughout the coverage areas is used by law enforcement officers to lead them to the stolen vehicle using RF direction-finding technology to locate the source of the tracking signal emitted from the Boomerang Unit.
The Boomerang System
The Boomerang System is based on RF and cellular technology and uses tracking devices internally developed by LoJack and the wireless network of a major Canadian telecommunications company for locating and tracking stolen assets. The cellular coverage area for Boomerang’s tracking of stolen assets includes most of North America; however its service area is primarily in certain Canadian provinces. The Boomerang System consists of the Boomerang Unit that is installed in a purchaser’s vehicle, the cellular network, the Boomerang Security Center and Boomerang Vehicle Tracking Units. If a vehicle equipped with a Boomerang Unit is stolen, the vehicle owner is instructed to report the theft to the local police department and the Boomerang Security Center. When the Boomerang Security Center is advised of a theft, it obtains the approximate location of the Boomerang Unit via a secure connection with the cellular carrier and then transmits a code causing the Boomerang Unit to transmit a tracking signal. Upon transmission of a tracking signal by the Boomerang Unit, a tracking vehicle, equipped with a Boomerang Vehicle Tracking Unit, is dispatched to the approximate location of the Boomerang Unit.
The LoJack Unit is a component of the LoJack System that is installed in a consumer’s vehicle. The LoJack Unit consists of a very high-frequency (VHF) transponder with a hidden antenna, microprocessor and power supply, and contains a set of secret codes unique to the the LoJack Unit. The LoJack Unit’s transmitter is activated upon receipt of its unique activation code from the SAS. In the United States, the entry of a stolen vehicle report into law enforcement information systems in jurisdictions where the LoJack System is operational causes the SAS to broadcast the activation code to the LoJack Unit in the stolen vehicle, in turn causing the LoJack Unit to transmit a signal. An activated LoJack Unit will continue to broadcast until it receives a properly coded message to stop. The deactivation command is automatically sent to the LoJack Unit upon entry of theft recovery information in the law enforcement information system.
LoJack Early Warning, sold as an optional component of the LoJack System, provides early notification to a vehicle or motorcycle owner in the event of operation by an unauthorized user. LoJack Early Warning consists of a coded key pass and a motion sensor that works with the LoJack Unit to monitor vehicle movement and detect the presence of the registered owner’s key pass. Should the vehicle move without the presence of the registered owner’s key pass, a communication from the LoJack Unit in the vehicle is transmitted to the LoJack Control Center, a Company-maintained database that provides automatic notification to the registered vehicle owner via e-mail, text message and/or phone call. LoJack for Construction Equipment is designed specifically for installation on heavy equipment. It functions similarly to the traditional LoJack Unit, but has been modified to meet the Society of Automotive Engineers design standards for use on heavy-duty vehicles. The Company offers warranty products that may be purchased as a supplement the original purchaser’s warranty. These warranty products include LoJack Extended Limited Recovery Warranty, LoJack Guarantee Plus 5000 (offered in all U.S. states except New York) and LoJack Protection Plus 5000 (New York only).
The Boomerang Unit consists of a cellular band RF transponder with antenna, microprocessor and power supply. If a vehicle equipped with a Boomerang Unit is stolen, the vehicle owner reports the theft to the local police department and the Boomerang Security Center. When the Security Center is advised of a theft and after a police report has been filed, the Security Center locates the approximate location of the Boomerang Unit via a secure connection with the cellular carrier network and then sends a code causing the Boomerang Unit to transmit a tracking signal.
The Company’s BoomerangXpress product is similar in design and functionality to its Boomerang Unit but given the price point of the Boomerang Unit, it is generally installed in high end luxury vehicles while the BoomerangXpress Unit is priced to address the needs of the mid-price vehicle market. The Boomerang Espion and Espion Alert utilize multiple wireless sensors, to increase the effectiveness of the Boomerang system. The Boomerang2 and Boomerang Espion Alert Units are products that build upon the Boomerang Unit by integrating two-way communication and diagnostics to provide automatic theft notification by sending a tracking signal upon any unauthorized vehicle movements. A key fob, used in connection with both Units, contains a coded key pass and a motion sensor, which monitors vehicle movement and detects the presence of the registered owner’s key pass. The Boomerang 2 and Boomerang Espion Alert Units also monitor any tampering with the car battery. Should the motion sensor detect that the vehicle is moving without the presence of the registered owner’s key pass, an automatic call is made by the Unit to the Boomerang Security Center indicating an alarm on the customer car. The Security Center then contacts the client to verify the status of the vehicle. If it is determined the vehicle has been stolen, the Security Center proceeds with the same tracking and recovery steps as noted for the traditional Boomerang Unit.
The LoJack SafetyNet System is comprised of a Personal Locator Unit (PLU), worn on the wrist of the subscriber, a Search and Rescue (SAR), a Receiver used by public safety agencies, a database of key information about the subscribers to assist in the search and rescue, and training for law enforcement and public safety agencies in the use of its technology in the search and rescue process. As of December 31, 2011, it owns approximately 64% of SCI. The Company licenses to SCI the use of the LoJack brand name for its cargo and tracking recovery solution, called LoJack InTransittm. LoJack InTransittm uses three technologies, such as RF, Global Positioning System (GPS) and Global System for Mobile Communication (GSM) in combination to deliver a solution for the prevention, detection, investigation and recovery of stolen cargo.
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