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 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 at the 2019 Barnes Buchanan Conference. However, despite that narrative, it is a "great...
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...
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...

Most Recent Industry Reports

Security Installation Tools Guide - 22 Tools Listed on Feb 19, 2019
In this guide, we cover 22 tools that security installers frequently use. This is one part of our upcoming Video Surveillance...
Sales Cuts At Rasilient on Feb 19, 2019
Over the past 2 years, video surveillance storage specialist Rasilient has expanded its workforce significantly, aiming to build its own branded...
Exacq Raises VMS Software Pricing Twice in Less Than a Year on Feb 18, 2019
Most VMSes regularly release new features, but rarely increase their prices. For the 3rd time in 4 years, and 2nd time in 8 months, since being...
Axis IR Multi Imager Camera Tested (P3717-PLE) on Feb 18, 2019
Axis has released their first IR multi imager, the P3717-PLE, a repositionable model listing 360° IR illumination and flexible positioning,...
Ubiquiti Favorability Results 2019 on Feb 18, 2019
Ubiquiti has quietly grown into a $1+ billion annual revenue company, with offerings across wireless, wireline network and video surveillance (see...
Casino Surveillance Pro Interview: James Lathrop on Feb 15, 2019
James Lathrop has been working in casinos for almost 25 years. During that time, he says he has held "just about every job you can do in the...
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...
Hanwha Smaller Multi Imager Tested (PNM-9000VQ) on Feb 14, 2019
Hanwha's first repositionable multi imager PNM-9081VQ tested well, but was huge, over 12" wide and weighing in at over 10 pounds. Now, they have...
ADT And 'The Defenders' Silent About Massive Complaints on Feb 14, 2019
ADT's largest dealer, "The Defenders" has been the subject of a massive number of complaints over many years and many forums, most recently a CBS...
Hikvision Chairman Praises United Front on Feb 14, 2019
Hikvision’s controlling shareholder held a meeting last month praising the United Front, a Communist Party organization known for its secretive...

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