While new business (both surveillance and access control) maybe slowing, the retrofit business is very strong and should be strong for years to come. The acquisition of Red Cloud should position them to have continued dramatic growth over the next few years.
Avigilon CEO Looks To Rebuild Investor Confidence
Published Jul 02, 2014 04:00 AM
Avigilon's CEO has been making the circuits seeking to rebuild investor confidence following their shock CFO departure.
Here he is on Canadian business TV:
Inside this note, we break down the 3 main claims:
- Market price pressure impacting (or not) Avigilon
- Unmotivated rich employees
- Phenomenal market growth (or not)
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No ***** ********?
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*******, ********'* ***** *************** *** ********** substantially ** *** **** * *****, primarily ******* ***** ******* *** ****** relatively ******** (*** ***** ****** ***** *****) ***** ****** **** ****** **** more **********. **** ********* ****** ** more ******** ******* ******* ** **** up *** ***** ******* (**** *********) ** ****** ***** ***** ** * substitute ** ******** ****. ************, **** **** makes ** ****** ** ****** ** offer ***** **** *********.
Unmotivated **** ********* *****
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**** ** ************ ***** ********** ****** ** ******** ****** ***** Avigilon **-**************** ***** ****** *** ****. *******, ****** this **** ** ** **** *** Avigilon *** ********** ** ***** *** central **** *** ****** ** ********'* campaign ** ******* ******** ******** ***** management ********.
*******, **** ** * ***** ******** strategy. *** **** ******* ** ********* employees **** ** ***** *** ******** disparaging ****** **-*******? ****, ********** ** *** sales **** **** ******* **, *** sure. *** ** ** * ***** proposition *** *** **** ** *** company, ********** *** ********* ************ ********* whose**** ***** *** ****** **** **** questioned.
Market ******
*******, ********'* *** ****** ***** '********** growth' *** * $** ******* ** market, ******* ~**% *** ****.
*******, *** *** / *** ******* are ****** **** **** ****** **** and***** ******* ********. *** **** **** ** **** making **** * **** ********** ** Transparency ****** ******** (***************), ***** ** ** ******* *** unrespected ****** ** **** ********.
*** ******* ****** ****** **** ** certainly *** ***** **** **%, ********** in ******** ****'* ******* ** ***** America *** ******, ***** ** ** much ****** ** *% ********.
Next ******* - ****** **** ******
**** ****, ** ****** **** ****** *** Q2 **** (*** **** ******** ***** - **** *********). ******** *** ***** it *** **** *** ******* *** that *** ***** **** ** ****** and ******* ** ***** **. ****, Avigilon's *** ***** ** ***** **** to *** *** ********** ******** ******** *** the*** ******* **** ** **** ** *** deliver ** *** ***** **** *******. As ****, ** ******* **** ****** *** all *** ***** ** **** ***** number.
** ****** ******** ** ****** ** least **% **** **** **** ****** and *** ***** ** ***** ******* $30 ** *** *** ** **** 2014.
Long **** ******
*******, ********'* ****** **** ****** *** ********. Their ***** ********* ** ***********. ***** ******** pressure ****** ******* *** ****** ** cause **** ****** ** **** ****. The ****** ** ******* ****. *** they ****** ** ***** ** ******* their ****** ***** ****, ***** ***** it ****** *** ****** **** **** to ****** ** *** ******** ******.
Comments (15)
PH
Patrick Heenan
Jul 02, 2014
Brian Rhodes
Jul 02, 2014JH
John Honovich
Jul 02, 2014RedCloud, when acquired, was doing ~$2 to $3 million annual revenue compared to Avigilon who did $178 million in 2013. Even if RedCloud sales exploded, it's hard for it to be a big factor.
I actually think VideoIQ has a much greater chance of being a meaningful revenue contributor for Avigilon.
Michael Budalich
Jul 03, 2014Make that two of us. VideoIQ was arguably the best company in the video analytics space. Nobody in their right mind would consider Red Cloud to be the number 1 access control provider. The Lenel, Genetec, Software House, S2's of the world all have far more market penetration than Red Cloud, especially at the Enterprise level.
Brian Rhodes
Jul 03, 2014Even if Avigilon had purchased a huge established access brand I wouldn't call it a catalyst for dynamic growth in the next few years.
As we covered in our recent survey piece "Lifespan of Access Control Systems", system changeover is rare. I doubt any of the access incumbents are realistically bracing for an onslaught of new business.
JB
Jeremiah Boughton
Jul 03, 2014I'm not an Avigilon user, dealer, installer, rep, employee, distributor, outsourced marketer or groupee...But I'm curious... why so many articles about Avigilon and not about others? Is it because they are a Public company and information is readily available? Or because they are like a Google, Apple or Microsoft in the industry? (Big 3 in Tech - TechCrunch, The Verge, Mashable, Engadget & Etc. is always writing about them)
Who are all the Public Companies in the Security Surveillance Industry?
JH
John Honovich
Jul 03, 2014Because lots of members like to read about them.
AK
Alex K
Jul 03, 2014JH
John Honovich
Jul 03, 2014AK
Alex K
Jul 04, 2014Oops sorry John my bad
btw your next job interview with Avigilon going to be at the end of July :)
RW
Rukmini Wilson
Jul 04, 2014Actually John, since no one would believe it, yet still it could help enlighten those people who keep insisting that there is no conflict inherent in the Canon-Milestone deal, I think a satirical letter to the troops may have value in making it more real...
A tongue-in-cheek communication announcing your acceptence of the position of CAO, Cheif Advisory Officer at Avigilon, starting immediately, and explaining why this should not concern anyone. Something that might start like:
Dear Pro Members, as you may or may not be aware, I have accepted the recently created CAO spot at Avigilon. Now let me assure you from the start that there will be no impact to IPVM, i.e. what happens on that side of the wall, stays on that side of the wall. Here's why...
AK
Alex K
Jul 04, 2014Hmm,
I think the reference ( and few good words ) I provided for John will qualify him for ....?
You wanna try to guess ? :)
JH
John Honovich
Jul 04, 2014I actually thought something similar in the aftermath of the Canon / Milestone deal.
It would be just like a manufacturer acquiring IPVM and then me going out and talking how they assured us we were going to be an 'independent member' and how there would be a 'Chinese wall.'
That said, from having dealt with Milestone for many years, my take on their unbelievable post-deal claims is that they are naive / gullible.
RW
Rukmini Wilson
Jul 04, 2014That said, from having dealt with Milestone for many years, my take on their unbelievable post-deal claims is that they are naive / gullible.
With a lot of finger-crossing going on. This might sound a bit far-fetched, but in some ways I feel that just as compromising as being bought by a hardware manufacturer, is fact that they are now part of a public entity.
For instance had they IPO'd and remained independent, over time the pressure of public institutional shareholders who think being independent is great, right up until the inevitable missed earnings slump. Then its just, "How do we turn this thing around?", we could do this or this... Everything is on the table then.
Remember when Google's slogan was "Do no Evil"? At the time I thought, "Yeah, good idea, no evil, just don't do it!" Then between the privacy stuff and the creative tax evasion strategies, they seem to have done plenty of it... But really how could it be otherwise, since shareholders come and go and some are less committed to evil reduction than others, and eventually the slippery slope beckons and the defacto motto becomes "Do no Evil, if at all possible" to where it stands now, right between "Do no Evil by accident" and "Don't always do Evil".
Luis Carmona
Jul 04, 2014