IndigoVision wins Arizona contract

  • Aug 01, 2007

INDIGOVISION has continued its drive into the potentially lucrative casino security market with its largest deal in the US to date.

The digital CCTV company said it had been awarded a "prestigious, multi-million-dollar contract" to upgrade the video systems at the Casino del Sol and Casino of the Sun in Arizona, both of which are operated by the native American Pascua Yaqui tribe.

A local contractor will install 1,100 digital cameras at the two casinos, located a mile apart, to be connected through a fibre link allowing both to be monitored from one location. The new system will cut the total space needed for surveillance monitoring by about 70 per cent.

Edinburgh-based IndigoVision has been targeting the casino market for some time. While casinos are heavily reliant on security footage, almost none have transferred to digital footage from traditional analogue systems.

Last November the firm announced it had won work at the Mardi Gras Racetrack and Gaming Center in Hollywood, Florida, which IndigoVision said was the only casino in the US to use a fully digital system. This month the company announced it had won a contract in Macau, the former Dutch colony that is now an administrative zone of China, part of which will monitor a casino.

The latest contract is the company's largest in the US to date, eclipsing its previous casino contract.

Mateo Flores, director of surveillance for the Pascua Yaqui Gaming Enterprise Division, said: "IndigoVision's technology was chosen following extensive trials of competing systems and visits to existing casino installations."

IndigoVision also released a pre-close trading statement saying revenue for the year to 31 July is expected to be about GBP 13.6 million, an increase of about 80 per cent on the previous year.

Gross margins in the second half are expected to be about 61 per cent, similar to the level recorded in the first half. However, the company hinted that profits, while ahead of last year, would not grow in line with sales, as it lays down a platform for growth, saying overheads had continued to grow in the second half.

Earlier this month The Scotsman revealed the company was recruiting a global sales director, charged with increasing its sales force from about 30 to 250 over the next three year.

"This inevitably impacts growth in operating profits, which are nevertheless expected to be substantially ahead of last year," the company said in a statement.

The statement was released after the stock exchange closed last night. Shares in IndigoVision were unchanged yesterday at 885p, valuing the company at GBP 62.7m.

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