Q-FREE - CONTRACTUAL CHANGES IN SLOVAKIA
SkyToll Inc. and Q-Free ASA have as previously announced 28th of May 2010 been in a dialogue regarding changes of the contract signed 23rd of January 2009.
The dialogue between the companies has been challenging and caused a material reduction of the contract at a late stage of implementation. The system delivered by Q-Free has been in operation since 1st of January 2010.
The changes imply that the customer takes over the responsibility for completion and maintenance of the central system as well as service and maintenance of the enforcement system.
The consequences of these contractual changes are that the company has, according to initial contract, items related to revenues, expenses and the balance sheet which need to be reversed / depreciated.
The effect of the above mentioned is that Q-Free reports revenues of 68 MNOK, operating profit of -115 MNOK and adjusted order backlog of 467 MNOK for the third quarter 2010.
As part of the contractual changes, Q-Free will be awarded a frame agreement of 5 MEUR for delivery of services and products in the years to come.
This announcement is based on what the parties have agreed to as the main principles for a revised agreement.
Trondheim 19.10.2010.
For further comments please contact:
CEO, Øyvind Isaksen, mobil +47 908 76 398
CFO, Roar Østbø, mobil +47 932 45 175
About Q-Free Q-Free is a leading global supplier of solutions and products for Road User Charging and Traffic Surveillance having applications mainly within electronic toll collection for road financing, congestion charging, truck-tolling, law enforcement and parking/access control. Q-Free offers solutions and products based on state of the art technology, and is the leading supplier within DSRC (tag) - and ALPR (Automatic License Plate Registration) and GNSS (Global Navigation Satellite System) based solutions, with deliveries in Europe, Asia-Pacific, Middle East and North- and South America. The company has appr. 300 employees in 11 locations and representatives in 7 other countries. Headquarter is based in Trondheim, Norway. Q-Free is listed on the Oslo Stock Exchange with the ticker QFR. http://www.q-free.com