LoJack's signature product helps police recover stolen vehicles -- a chilling thought for those driving hot cars. When a car equipped with a LoJack transmitter is stolen, its signal is activated and tracked by police. The company rents tracking computers to law enforcement agencies, then markets transponders to dealers and operators in 28 states and the District of Columbia, and more than 30 countries internationally. It also sells products for tracking people, personal electronics, cargo, data, and commercial equipment. LoJack provides installation and maintenance of its units, which are manufactured by third parties. Canadian subsidiary Boomerang Tracking uses cellular technology to track stolen vehicles.
LoJack's products have led to the recovery of more 300,000 vehicles worth more than $5 billion. When a car is stolen, a radio signal is transmitted to the automobile's unit, which activates its tracking signal. Law enforcement officers in patrol cars or aircraft, in participating jurisdictions, can follow the signal to the stolen vehicle. The units, which are covertly installed (with no antennas or markings on the vehicle) and use a radio frequency (RF) technology that can transmit through buildings and containers, yield a recovery rate of approximately 90%.
While the company operates through its two regional segments, North America and International, a third "Other" segment comprises SC-Integrity (SCI) and LoJack SafetyNet. LoJack owns approximately 60% of SCI, to which it licenses its LoJack brand name for cargo and data tracking and recovery products. LoJack SafetyNet is its search and rescue product for people at risk of wandering (such as those with Alzheimer's, autism, Down syndrome, and dementia). Potential wanderers wear a bracelet that sends an RF signal, which can be tracked by police equipment.
LoJack saw its revenues decrease in 2008 and 2009 as a result of the economic recession that caused a significant decline in the global automotive industry and on aftermarket products such as LoJack Units. The company consolidated its Canadian and US units under the North America banner, reduced its workforce, and took steps to streamline operations. The region's sales did improve slightly in 2010. While it has yet to return to profitability, LoJack's losses have decreased.
Even with the reductions in North America, the company is looking to expand globally by growing its operations in Italy, partnering with licensees, and increasing its LoJack SafetyNet and SCI offerings. It has also launched its RF technology in Canada to replace cell technology. LoJack plans to continue its growth strategy by strengthening its traditional products, as well as expanding into newer markets. It plans to do this through acquisitions, technological advances, new product development, and global partnerships. – less