The chairman of the major red light camera vendor, Redflex, has told the company's investors that North America is a "low/no-growth market" and that the company continues to face "potential legal risk as a result of the investigative findings."

Redflex has been under fire in particular as a result of its Chicago contract that resulted in a federal corruption case. In October 2014, one of the three defendants in that case pleaded guilty, which marked the first guilty plea in a high-level case involving Redflex.

Since losing the Chicago contract as a result of this corruption scandal, Redflex’s 2013 pre-tax profits in its North American division (its corporate parent is an Australian company) have plummeted over 33 percent—from $3.4 million in the first half of 2013 to $2.28 million in the second half. The company announced that it lost $1.2 million during its fiscal year ending June 30, 2014. At present, the company operates in California, New Jersey, Florida, Alabama, and Virginia, among other states.

"Let me ask you to consider the unprecedented amount of change that Redflex has faced," Adam Gray told investors last Thursday. "Over just the past three years, this company has seen seven directors leave the organization, has had three chairmen, and is on its third Group CEO. Seven directors. Three chairmen. Three CEOs. Over three years."

Finally, Gray concluded, "Redflex needs to be de-risked. Revenue volatility, geographic and product concentration risks, class actions, federal investigations, different technology platforms all create a high risk business. To move into the non-Photo Enforcement market, organically or inorganically."

In December 2013, Ars reported on red light cameras nationwide, and in particular Redflex's four cameras in the central California town of Modesto.