Sales force is responsible for the short term gain, building on the foundation of Engineering. Engineering is where a company's real longevity lies. How does Avigilon seem to be doing on that front?
Avigilon Analyst's Theory On Ex-Execs: "Road to Riches"
Published Jun 23, 2014 04:00 AM
Avigilon's stock tumbled after their CFO departed, a culmination of 4 executives out in half a year. Many investors and financial press commentators cited 'management turnover' as a concern.
Now, an Avigilon analyst has an intriguing new theory about why these executives were leaving and what Avigilon's CEO prefers.
"Road to Riches"
****'* *** ****** **** ***** ******-**** [link ** ****** *********], ******** ********* at **** ***** *******, ********* ** us ** ** ********:
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** *** ***** ****, **** ****** leave ** ** *** ***, ** is ********** ******* **** **** **** forced *** / *****.
******-**** *****:
"**** ****** ****** ** *** ***** ** 2012 ** *** * ****** ** $180K **** ******* **** **** ********* as *** ***** ***** *** ***** the *** *** ******** ***** ** $4.50.
** * ***** ***** ** $** at *** **** *** *** *** posted ** ******** ******** *******, *** ****** ***** options (*** **** *** ** ***** would **** ****** ** ***** ****), acquired ******, ****** *** ******* ***** have ******* ***** ** $* ******* gross."
**** ****** ****** *** ******** **** ********* internal ******** / ************** ** ********* about *** ****** *********'* *********.
Sales ***** ****
*** ***** ***** ****** ******** ** the ***** **** (*.*., ********* ******) ** ********** *******. **** *** fairly ***** **** ***** ** ***** ******** ** ***(*.*., **** *** ********* ***** **** VP ** ********** '****' ** *** pushed ***).
**** **** ** *********** ** *** is ******* *** **** ******** ***** organization's ******* *** ******* **** ***** well ** *** **** ** *** organization (*** ********* **** ***** **** *****, ****** and *****).
CEO ******* **** *********
**** *** **** *****, ********'* *** has **** ****** *** ** **** with ******* ********* *** ********. *** stock ***** ********* **** ** ** doing * **** *** ** ********** them. ***** ********* *** ***** $** per *****, *** ***** ***** *** rebounded ** $**+. ****** **** ** not *** *** *** **** ** the $** ***** ****** *** *** exit, ** *** ********* *************.
******* ** *** **** ****** ***** the ******** ***** ** **** (** are *********), **** ****** ** ******** rallying ****** *** ************ ******** ***** organization, *** *** ********** ********* *** revenue ****** ******** ***** ***** *********, but **** *** ** ******* **** the **** *********** **** ** ******* the ****** *******.
Comments (12)
UM
Undisclosed Manufacturer #1
Jun 23, 2014JH
John Honovich
Jun 23, 2014Avigilon's products are strong and that is certainly an output of the engineering team (e.g., one of the favorite ip cameras, VMS and analytics).
Now what happens going forward, after the turnover / changes, I do not know. But they certainly have a strong foundation in place.
RW
Rukmini Wilson
Jun 23, 2014On the other hand, when people leave to no new job, it is frequently because they have been forced out / fired.
On both hands, as an exec's wealth rises to the point they can cash-out, they become less motivated to put-out (the effort), and will often get pushed-out. It's not really an either/or the way you frame it...
Also most top Exec's are expert wall-readers (and ship-jumpers), and although they sometimes can't prevent being pushed out, they usually know to switch-tracks before they reach the end-of-the-line. But even if they don't see it coming, these people are generally employable folk (although the hiring proccess moves at a snails pace for Execs) and if after a year of downtime they are still not gainfully employed, then there's a good chance thats the way they want it...
Finally, sooner or later, you would expect a bitter Exec to admit to the palace coup, if that was the case...
JH
John Honovich
Jun 23, 2014For sake of argument, let's assume the exited CFO wanted to cash out, why did he do it right before the financials were announced?
He didn't realize that this would spook the market? He timed it on purpose to hurt them? And then Avigilon's CEO shielded him by claiming he was sick?
There's just a lot of improbable points that need to come together for the CFO and all these other execs quitting just to cash out.
RW
Rukmini Wilson
Jun 24, 2014I agree about the CFO as I've stated before, my point is if all these people don't get new jobs ever, they probably didn't need them. On the other hand if they are all working within 6 months and at a job of equal or lesser stature, then the cash out theory is a bust...
JH
John Honovich
Jun 24, 2014They probably didn't need new jobs?
"close to $3 million gross" earned over a 2+ year period is not exactly f-u money, especially after taxes, etc.
I could understand if you were talking tens of millions, but that is not the case here. And the CFO has only been out a little over a month.
Plus, why would he jump from Avigilon if he really believed the company's story that they were heading to $500 million revenue in just 2 years? That would invariably mean lots more stock options in the money for millions more.
And, by the way, I thought he was sick. Now, we are debating how greedy he is?
If this is a spin job by Avigilon, kudos to them for a well played effort.
RW
Rukmini Wilson
Jun 24, 2014Damn, your right! I didn't assess the three million number correctly, processing it only as 'sh#tload'...
Whose hoarding the other 997 million then? :)
U
Undisclosed
Jun 24, 2014This is sounding more and more like Canada-company-morphs-to-US-badass (or at least US attitude). See Entrust, Nortel, Certicom, Blackberry, others. Complete with weird stock transaction deals we find out about late in the story.
Luis Carmona
Jun 24, 2014JH
John Honovich
Jul 30, 2014Here's another analyst who supports the greedy ex-execs theory. Again, this would be more convincing if (1) they really made a ton of money (they didn't) and (2) Avigilon didn't claim the CFO was sick at first.
RW
Rukmini Wilson
Jul 30, 2014So much for that theory, Brad Is Back! Apparently Brad caught a 'second wind' and made a speedy recovery back in JUNE:
Ethan Ace
Jul 30, 2014