ACTi Financial Results 2011 Examined

Author: John Honovich, Published on Jul 17, 2011

A few years ago, ACTi was widely acknowledged (including by us) as one of the leading growth companies in the IP video surveillance market. Over the last 2 years, a clear and worrisome trend emerged of slowing product development and market progress.

In this note, we examine ACTi's financial results from 2009 - 2011 that confirm the challenges the company is facing.

Let's review key financial data points:

  • ACTi had $1.05 Billion NTD sales in 2009. This is approximately $36 Million USD, a fairly sizable amount for the IP camera market during that time that put that among the world's top selling IP camera providers.
  • In 2009, ACTi's reported operating margins were 19%, indicating strong profitability equal to or higher than companies like Axis and Mobotix.
  • In 2010, ACTi's revenue only grew ~12% to $1.17 Billion NTD. This is approximately $40 Million USD.
  • At the same time, 2010's operating margins dropped to 11%, still fairly profitable though much lower than in 2009. This is especially noteworthy because the general trend in 2010 was rising operating margins as the macroeconomy recovered / stabilized.
  • For the first 6 months of 2011, ACTi's revenue is flat year over year compared to the same time period in 2010, putting them on pace for ~$40 Million USD in 2011.

Readers may review ACTi's income statement and 2011 interim results.

On the one hand, flat to slow growth can be interpreted as simply standing still, a result that many large scale incumbents would be happy to achieve in the last few years.

On the other, ACTi is an IP surveillance only company in a market segment that is growing ~30% per year in this time frame. Simply matching the market growth, ACTi should be at roughly $60 Million USD in 2011, a number they are almost certainly will not hit.

Worse, in this time frame, their main geographic and market subsegment rival, Vivotek has doubled their revenue. In 2009, ACTi and Vivotek's revenue was fairly close. Now, Vivotek is on pace to be twice as large as ACTi - an outcome many would have that impossible a few years ago.

It remains somewhat of a mystery how a company doing so well in a growing market could stumble this badly. From an external viewpoint, the two most striking signs were the precipitous decline in new product releases and the rise of the marauding booth babes (though the former is much more likely to have a practical impact than the latter).

Going forward, some financial improvements from ACTi are likely to be expected. While ACTi pre-announced their 4MP lineup very early, the cameras are now shipping and should help ACTi regain some ground. At the same time, ACTi will need to aggressively expand and update their product development to keep pace with direct competitors like Axis, Arecont, Vivotek, etc. who have released far more products than ACTi in the last 2 years.

3 reports cite this report:

ACTi New Low Cost HD Cameras (TCM) on Feb 06, 2012
In the past two years, ACTi has struggled. As we saw last year, their growth has not kept pace with the overall IP camera market. Recent product...
ACTi's 4MP Price/Performance Analysis on Aug 30, 2011
Over the past year, Taiwanese megapixel manufacturer ACTi released a line of four-megapixel cameras, while discontinuing most of the standard...
IP Cameras for the Mass Market on Jul 14, 2008
While Axis brought IP cameras to the enterprise, ACTi could be fostering IP cameras to the masses. With a broad camera line and extensive NVR...
Comments : PRO Members only. Login. or Join.

Related Reports on Financial Updates

Hikvision Strong Domestically, International Business Struggles on Jul 25, 2018
Hikvision's H1 2018 results are out. Overall revenue growth has sharply dropped, with the company acknowledging their "facing geopolitical...
Arlo IPO Filing Reveals Key Financial and Competitive Details on Jul 09, 2018
Arlo is going to IPO at a projected valuation greater than Axis. Now, Arlo has released their 175-page Form S1 Registration Statement for its...
Milestone 2017 Financials Examined on Apr 24, 2018
For ISC West 2018, Milestone released ... their financials, touting "strong revenue growth in 2017". However, there were discrepancies with the...
ADT Hammered Again, Loses Another Billion In Market Cap on Mar 16, 2018
ADT's CEO told investors that, 'in baseball terms', ADT was batting 5 for 5. But investors told ADT's CEO, 'in baseball terms', that he was...
Arlo, Bigger Than Avigilon, More Valuable Than Axis on Feb 08, 2018
Arlo, the wireless IP camera offering that Netgear bought ~5 years ago for a few tens of millions is now doing more revenue than Avigilon and...
Axis Breaks 1 Billion USD Annual Revenue on Jan 26, 2018
Axis Communications annual revenue has exceeded $1 billion for the first time in 2017. In this note, we examine Axis financial performance over...
Sentry360 Bankruptcy on Nov 30, 2017
Sentry360, a US-based video surveillance manufacturer, most well-known for its panoramic cameras, has filed for Chapter 7 bankruptcy. In this...
Axis Q3 2017 Financial Results on Oct 23, 2017
A big issue for Axis this past quarter was their product shortage. Despite that, new Q3 numbers for Axis show solid financial results. In this...
Avigilon Shifts Strategy To Maximizing Profitability (Q4 2016 Results) on Mar 01, 2017
Avigilon had previously been known for big spending, hiring a large sales force and throwing lavish partner parties at tradeshows like ISC West....
Avigilon Stock Surges 40% On Strong Growth (Q3 2016) on Nov 15, 2016
The roller coaster continues. After a brutal Q2 heading down, Avigilon's Q3 growth is strongly up. Inside this note, we examine what powered...

Most Recent Industry Reports

Chinese OEM Avycon Gets ADI Push on Aug 15, 2018
Who is Avycon? An American company? A Korean company? A couple of guys relabelling Chinese products? The latter is the best explanation. While...
Backboxes for Video Surveillance Tutorial on Aug 15, 2018
Backboxes are a necessity in surveillance, whether for managing cable whips, recessing cameras, adding wireless radios. But it can be confusing to...
Genetec Stratocast / Comcast 'Motion Insights' Examined on Aug 15, 2018
Comcast recently announced "SmartOffice Motion Insights", an extension to their Genetec OEMed cloud video service (covered by IPVM here). This...
SimpliSafe Violating California, Florida, and Texas Licensing Laws on Aug 14, 2018
IPVM has verified that DIY security system provider SimpliSafe, founded in 2006 and acquired in June of 2018 at a billion dollar valuation, is...
Ban of Dahua and Hikvision Is Now US Gov Law on Aug 13, 2018
The US President has signed the 2019 NDAA into law, banning the use of Dahua and Hikvision (and their OEMs) for the US government, for US...
Cut Milestone Licensing Costs 80% By Using Hikvision and Dahua NVRs (Tested) on Aug 13, 2018
Enterprise VMS licensing can be quite expensive, with $200 or more per channel common, meaning a 100 camera system can cost $20,000 in VMS...
Nortek Sues SDS, Battle Over Unpaid Bill and Cancelled Lines on Aug 13, 2018
Nortek and SDS legal battle continues. As IPVM reported, SDS sued Nortek alleging bribery and antitrust violation. However, Wave fired back at SDS,...
Uniview Intrusion Analytics and VMD Tested on Aug 13, 2018
IPVM's IP Camera Analytics Shootout featuring Avigilon, Axis, Bosch, Dahua, Hanwha, Hikvision created some ill will with a Uniview distributor who...
ADT Employees Protest ADT CEO on Aug 10, 2018
So many ADT employees were so upset with ADT's CEO speech reported on by IPVM, that ADT's CEO was forced to send a mass email to employees to...
Axis / Avigilon Legal Battle Rises on Aug 09, 2018
In what is shaping up to be high-powered, will-not-back-down battle, Axis and Avigilon are squaring off in multiple legal contests. In 2017, IPVM...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact