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MARKET COMMENT
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One of the numerous casualties of the tech fallout has been Trafficmaster (LSE: TFC). A surprise to some perhaps, since the company's provision of traffic information appeared genuinely useful. But like most 'jam tomorrow' shares, all the hopes and dreams failed to convert into profits. Annual results today showed the harsh reality. Alongside a £53m loss, Trafficmaster admitted: "The anticipated general rise in demand for traffic information products has failed to materialise". The accounts revealed a £13m write-down relating to additional sensors recently installed to the firm's UK network. Another £16m was written off against Trafficmaster's German operation. It's all a far cry from three years ago, when comments about 'explosive growth' and 'hockey stick effects' were de rigueur. With traffic information revenues appearing flat at best, growth efforts now encompass in-car navigation, vehicle tracking and fleet service systems. So what went wrong? The technology came unstuck by down-to-earth reality. Most drivers tend to use familiar routes, know all the alternatives if a traffic jam occurs, and hardly ever have pressing appointments. There's also the cost; why pay for a fancy traffic system anyway, when you can get free road news on the radio, or just set off earlier? All straightforward stuff, yet was overlooked by Trafficmaster and its once enthusiastic shareholders. However, although the shares have collapsed 99% in the past three years, Trafficmaster remains upbeat about its propects and a new navigation system: "We are encouraged by the outlook for Smartnav, which we believe has enormous potential...". Don't be surprised when the public stick to their trusty road atlases! More: Trafficmaster: Not A Rule Shaker | The Good Old Days: Interview With (Now Ex-) Finance Director Bill McIntosh Red Nose Day Clue 3: The first name of Mr. Berger (Fool UK co-founder). A new clue will be published in one article each day this week. Take the first letter of each answer, solve the anagram and reply to Friday's lunchtime e-mail with the complete word. For each correct answer the Fool will donate 10p to Comic Relief.
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