With acquisitions of Lorex, DVTel and ISD, adding to their core thermal offerings, FLIR has been building up its presence in the security / video surveillance market.
In this report, we examine FLIR's security revenue, their financial trends over the last 3 years and challenges they are facing.
Financial ********
****'* ******** ***** ** ** **** for $*** ******* ******* ** ****, this ******** ***** ************ *******, *** / **** *** ******** *******.
******** ** ****, ******* ** *********** flat. **** ************, ** ** ****, year **** ****, ******* ** **** 5%.
******* **** ************* ** ****, ** ~26% **** $*** ******* ** ****. Likewise, ******* **** ******* ** ****, up ~**% **** $*** ******* ** 2013.
**** ******* ********* ******** ******* ** a ***** ** ****, *** **** after **** ******** *****, *** *** previously **** ~$** ******* ** ******* itself.
Revenue ********** ** *****
****’* **** ******** ******* ** $*** million ****** **** ***** **** ******** providers *** ***** *** ******* ******, some ********** ** ******* *******:
Security ** ***** ******** ** ****
******** ** *** *** ******* ******** segment *** ****, ************ **% ** total *******.
*** ***** *****, ********* **** ***** 2015 ****** ********** [**** ** ****** available] ******** *** ********:
****, **** *** * "************' *****, which ** ***** ********/********** ********, ***** sells ******* ******* *** ***** ****-*** imaging ******** ******** **** *** ******** division.
DvTel *********** ***** ******* ******* *******
******* **** ******, ********* *** ****** DVTel ***********, ** ******** **** ************* for ****. **** ******** ***** ** November ****, ******* **** ** **** had ** ***** *******, ***** ** 2016 ***. ***** ** ********* ************ to **** ******* ** ****. ** estimate ~$* ******* *** *******. ********* this **, ** ****************** *** ****'* ******** ***** ** down **-**%.
FLIR ******** ** ******* **** ** ******
**** ** ****'* ******** ** **** much ** ***** ******** *** **** from *** ******* ****-*** *** ***-*** of *** ******. ** *** ****-*** side ***** ******* ******* *** ****** compared ** ******* *******, *** ***-***** advances ** ******* ******* **** ******* applicability *** ******* ** **** ******. On *** ***-***, **** **** **** China, ********* **** ****** ***** ************ sales, *** * ****** ** ***** resellers ** * *****-****** *******.
Still *********
******* ***** ******* ** ******, **** is ***** ********* ** ***** ******** business,********* ********** **** **** ** **** **** round *** ***** ****** ********* *** design ************. ** **** ****** **** some **** ****** **** ********** **** off ** *** **** ** ******* growth ******.
Outlook *** ****
*** ***-*** ****** ******* **** ***********, leaving **** ** ******* ** *** mid ** ****-*** ******* *** ***** primary ******. **** *** ***** ***, they **** ** *********** ** ******* against ******** *** *********** ******* *** an ***-**-*** ********, *** **** **** be ********* ******* ********* ** **** segment ** **** ******* ********* ** try *** ******* ***** ****** ***********. FLIR's ******** ******** *** *** ******* of ***** **** ** * **** larger ************, ****** **** * ****** chance ** ****** *** * ******** in ***** ****** ***** **** ***** all ** ***** ************ ******** **** a ************* *********.
UPDATE: **** ******* $****
****'* ******** ******** *** * ********** strong ** ** ****, **** *% growth **** ** **** *** $**.** total ******* [**** ** ****** *********]. Total ******* ** ******** *** $**** for ****, ****** *% ****** **** 2015. ***** **** ****** ** **** dramatic **** ******** *****, ** ** noteworthy ***** **** **** *** * number ** ***-**** ******** ** ***** Lorex *** ********* ***** **** ******* directly **** ********* *** *****, ***** race ** *** ****** ***** **** have **** *** ***-**** ****** ******* challenging *** **** ***********.
Thanks, Brian!
What division do you think they will put the Point Grey acquisition? It could certainly continue to mask the drop in organic security revenue were its (or even a small portion of it) revenue to added in to security. Or maybe they are starting a new division for Industrial Imaging?
We actually covered that in the Point Grey acquisition report you linked to:
Point Grey will fall within FLIR's OEM & Emerging Markets division, expanding FLIR's ability to provide optical imaging solutions to their industrial customers.
If the ~$100M revenue estimate for Point Grey is not too far off, that could make the OEM & Emerging markets division overtake Security for the #3 spot, unless Security posts a large revenue spike (which seems unlikely for 2016).
The "Outlook" section reframes the big picture in a way I hadn't considered - not because it was obscured or anything, I'm just not used to those brands working together in such a way. If they can consolidate everything into one well-oiled machine instead of a handful of unrelated surveillance brands, it'd be very impressive.
They really need to get better at marketing the VMS for this to work though. Not just raising awareness - I mean they have to provide a compelling reason for buyers to take a demo.
UPDATE - FLIR released results for Q4 2016, the Security division ended up with almost 6% growth YoY, with $240M in revenue.
FLIR is also recruiting a new CEO, with current CEO Andy Teich retiring after 33 years with the company.
Teich came to FLIR via a previous acquisition and has been a strong proponent of thermal cameras and technology. It will be interesting to see what a new CEO does with FLIR's diverse portfolio.
