The U.S. prison system currently houses 2.3 million inmates, and this population continues to grow year after year.
With most inmates eager to maintain their personal connections, the U.S. market for prison telecommunications services now exceeds $2.0 billion annually. The market is primarily composed of small regional operators lacking advanced technology, and large national providers focused on larger facilities.
Lattice Incorporated (OTCBB: LTTC) is taking advantage of the fragmented, underserved market for smaller and midsize correctional facilities. Operating for 40 years, LTTC has a long track record of delivering industry-leading technology to government and private-sector customers.
The Company's Lattice Secure Communications (NYSEARCA:LSC) division provides call management technology for high-security installations such as correctional facilities. Its proprietary systems enable inmates to communicate with their families and friends. These systems also offer sophisticated investigative tools and value-added technology solutions, including payment kiosk integration, video visitations, live monitoring and recording features. The system operates on a prepaid basis, dramatically reducing the bad-debt risk previously associated with traditional collect calling at correctional facilities.
A Company owned and operated central-switching system allows Lattice to quickly execute low-cost implementations for its customers. Its infrastructure also allows the Company to provide the same feature-rich systems to both small and large facilities, enabling Lattice to provide services traditionally unavailable to smaller facilities.
LSC also licenses its innovative technologies to other service providers in the telecommunications and secure communications industries. Lattice's technology and solutions have been implemented both domestically and internationally.
LTTC generates additional revenue from its Lattice Government Services (LGS) division, which develops and implements advanced information and communications technology for government agencies such as the U.S. Departments of Defense and Homeland Security. Areas of expertise include decision analytics, information management, and modeling and simulation.
The rapid expansion of the Company's LSC revenue is expected to drive overall sales growth and margin improvement. Revenue generated by the communications division increased 80.1% year-over-year for the most recent reported quarter, accounting for 77.7% of total quarterly revenue. LTTC continues to gain market share, recently announcing new installations at correctional facilities in Iowa and Canada.
Currently trading at a low price-to-sales ratio of 0.2, LTTC is an undervalued tech stock with strong appreciation potential. To learn more about LTTC, watch the Company's presentation from the RedChip Small-Cap Virtual Conference, or view their company profile.
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