ACTi Financial Results 2011 Examined

By: 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

ASCMA / Monitronics Declares Chapter 11 Bankruptcy on May 22, 2019
Monitronics is entering into Chapter 11 bankruptcy. The company, also called Ascent Capital Group Inc., aka ASCMA, aka Brinks Home Security,...
Milestone Execs on Financials, China and Future on Apr 29, 2019
Milestone has released a 44-page annual report for 2018, an atypical and unrequired move for a subsidiary of a large company, however, Milestone...
ADT Stock Drops After Announcing Loss And Amazon Delay on Mar 12, 2019
ADT's stock price dropped significantly after reporting heavy losses and delays in its Amazon partnership, as seen in the screenshot below: In...
Hikvision 2018 Revenue Tops $7 Billion USD But Growth Slows To Low on Feb 15, 2019
Hikvision's annual revenue topped $7 billion for the first time in 2018, although growth slowed sharply. In this post, we analyze the latest...
Barnes Buchanan 2019: Despite 'Strange Narrative' Great Time To Be In Security on Feb 11, 2019
A "strange narrative" is being spun, said Michael Barnes [link no longer available] at the 2019 Barnes Buchanan Conference. However, despite that...
Hikvision Growth Declines Q3 2018 on Oct 22, 2018
Hikvision's growth continues to decline in 2018 going from: Q1 - 33% Q2 - 22% Q3 - 14.6% In this note, we examine Hikvision's newest Q3...
Axis Strong US Growth, Flat EMEA - Q3 2018 Financials on Oct 18, 2018
This spring, Axis had its best financials in many years (see Axis Strong Q2 2018 Results). However, over the summer, Axis had many products sold...
Axis Strong Q2 2018 Results on Aug 20, 2018
Axis reported strong Q2 2018 financial results and, for the first time in many years, Axis grew faster than Hikvision. However, the company's...
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...

Most Recent Industry Reports

Hikvision Markets Uyghur Ethnicity Analytics, Now Covers Up on Nov 11, 2019
Hikvision has marketed an AI camera that automatically identifies Uyghurs, on its China website, only covering it up days ago after IPVM questioned...
Open vs End-to-End Systems: Integrator Statistics 2019 on Nov 11, 2019
Preference for open systems is on the decline, according to new IPVM statistics. We asked integrators: For video surveillance systems, do you...
Biggest Low Light Problems 2019 on Nov 08, 2019
Over 150 integrators responded to our survey question: "What are the biggest problems you face getting good low-light images?" Inside, we share...
US Issues Criminal Charges For Fraudulently Selling Hikvision And Other China Products on Nov 07, 2019
The US government has made an unprecedented move on the video surveillance supply chain, charging a US company, Aventura for "having conspired with...
The Access Control Codes Guide: IBC, NFPA 72, 80 & 101 on Nov 07, 2019
For access, there is one basic maxim: Life safety above all else. But how do you know if all applicable codes are being followed? While the...
Rhombus Cameras, VMS and Analytics Tested on Nov 06, 2019
Rhombus boasts they have created "the new standard in Enterprise, cloud-managed video security" and told IPVM in January 2019 they offer twice the...
"Stress in the Residential Market" - Major Lender Exits on Nov 06, 2019
The residential security / 'alarm' market is getting worse, at least for traditional players. Now, one of the biggest lenders in the industry has...
Aiphone Video Intercom Tested (IX Series 2) on Nov 05, 2019
Aiphone was one of integrator's favorite intercom manufacturers but how well do their products work? The company's newest offering, the IX Series 2...
90+ Companies Profile Directory on Nov 05, 2019
While IPVM covers the largest companies in the industry regularly (like Axis, Dahua, Hikvision, etc.), IPVM strives to do a profile post on each...
Hikvision USA Fights LTS on Nov 04, 2019
Hikvision's USA subsidiary is fighting with LTS, having recently quietly dropped LTS as an authorized distributor amidst ongoing face-offs between...