Anne Arundel County-based Brekford Corp. reported a loss in the second quarter — a period that coincided with a decision by Baltimore officials to suspend the city's speed and red light camera program, which is supported by the company.
"We anticipated a net loss during the second quarter, as we incurred significant costs in anticipation of our role as the primary vendor in the implementation of" the city's camera program, CEO C. B. Brechin said in a statement released Friday.
The publicly traded company reported a net loss of $476,068 during the quarter, compared with net income of $126,535 in the year-earlier quarter.
Brekford's contract with the city began in January. No tickets were issued until late February because of a bumpy transition from a previous vendor. In mid-April, city officials stopped issuing any citations after learning of problems that included one speed camera being programmed with the wrong speed limit. Hanover-based Brekford receives a share of each fine payment.
The camera program's temporary suspension has dried up a big revenue source for the city. Officials are counting on $11.2 million from speed camera tickets in the budget year that began July 1, along with $4.6 million from red light camera tickets. The projections include Brekford's share.
The city has not said when it plans to resume camera enforcement.Copyright © 2014, The Baltimore Sun