ADI Returns To Growth, Back To 'Pre-COVID Levels'

By IPVM Team, Published Aug 05, 2020, 11:03am EDT (Info+)

While ADI was hit hard in April, with revenue declining 21%, the company's executives said on an investor relations call that ADI has returned to growth.

IPVM Image

Inside this note, we examine a positive turnaround and look to what this means for ADI and the industry. Is this a signal of recovery in the security industry?

Overview ** **********

******* ********* *** ******* ** ** earnings ****, *** **************************** ***************** ***** *******.

*** ********** *** **********, ***** ** *****,************************ ***** ******* **** **** **** but ** *********** **** *** **** few ******:

***** *** ****** ******* ******* *** earnings **** **** ************* ******** ** last ****, ********* *** ** *****, we *** *** ****** ********** *********** in *** ********.

***** ******** ************ **** ***** ******* the ****** *******, *** **** ***** were ***** **** **** ** **** P&S *** ***. ** ****** ******* on *** ********-******* ***** ** *** employees *** *** ********. ** **********, we *** ********** *** ********** ** business ************ ** ******* ****** *** in ********* ***** ** **** ********* manufacturing **********, ** **** ** ****** chain ******* *****.

**** ****, ****** *** ******** ** pre-COVID ****** **** *** **** *** weeks ** **** *** *** *** Products & ********* ********, *** ***** industry ****** ****** ** ** *********.

Positive **********

**** ****** *** ***** ***** ***** COVID-19 **** ***** ***** **** **** for ***, ****** **** ********** ********** ** "********* **********":

*** ********* ** ****, ** *** noted, ** *** ********* **********. **** was * ****** ***** *** **** ADI *** *&*, *** ** *** now ****** ********* ***** ***** **** above **** ****. ****** ******, ************ in *&* ******* ** ** ****** by *** **** ****** ****** **** channel **********.

Overall ******** **

*** ***** ****** **** ***** ******** ******** ******* ********* ** *** ******* (left) *** ****** (*****) ******* **** ADI *** ********* *****, ** *** turnaround ******* *** **:

IPVM Image

IPVM Image

***'* ** **** ******* **** ** 3% *** ******* ** **% ******** to **** ****, * "*****-** ******* decrease" ** "****** ******** *** ******** or ********** ********** ******** ** ***** customer ******** ** ******".

*** ******** ** ******* ** ******* terms **** **** ** *** ***** being *** **** ******** ** *****-**, and ********* ******* **** **** ****,*******'* *** **********:

*** *****, ***** ******* ***** **** down **% **** *** **** **% and *&* **** **%. ***** ******* include *** ****** ** *****-** *** other ******* *** ***** **** ******* components.

************, ******* ******** ******* *** ***** discounts ****** ** ******* ***** ** April *** ****** ****:

******* ******** ****** *** **** ********** impacted ** ******* ******** ******* *** lower ***** *** *********.

ADI ****** **** *&*

*******'* *** *********, *******, *** *** appears ** **** **** ****** ********** during *** **** *** ** **** recent ****** **** *&*, ** * "well *** ********" **** **** "* more ******* ********":

*** ** * **** *** ******** and ** ***** ** **** * more ******* ******** ** ***** ** ADI ******** ** *&* *** *** functional ******

**** *** ******* **** ***** **** been **** *** **** *** ******* layoffs ** ***, ***** *** ******* to ** *** ****:

********** ***** [*****-**] ******* *** ********* aggressive **** **********, ****** * ******** at ***.

*** ***** **-********, *******, ****** *** positive ********:

********, ** ***** *** ****** ******* under ********** ********* ********* ** **** branch ********, *** *** ********** ******** improvement **** ***** ********** *** ******* and ***** ***** ******** ********* ** restrictions ****** *** ******** ********.

*****, **% ** *** ******** *** fully **** *** ********* *** ** our ******** *** **** **** ********* those ***** ******** ********** *** ******** pickup.

*&* ******* *** ******* **** **** significantly **** ***'* ***, ******* **** ***** **. *** ********* ***** **** *** "negatively ******** ** ******* *** *** increased ******* ***** ******* ** *****".

Reduced **** *** *******

******* ** *** ******* ********, *** the ** ****** **** ******** ******* making *** $** ******* ************* *******:

** **** **, ** **** *** regularly ********* $** ******* ************* ********* payment, ** **** ** * $* million ********* ********* ********* ******* ** Honeywell. ********* *** ****** ** ***** the ** ************* ********* ******* *** an ********** ** **** ******* ******* 30. ** ****** ** *********** **** Honeywell, *** **'** ****** *** ************ should ***** ** *** ******** ************.

**** ***** ** **** ** *******'* cash **** ********** ********* $*** ******* year-over-year, ********* * ****** ** "***** working ******* **** ** *** ******** in ******** ********".

*******, ** ** ***** ********** ** Resideo ***** ********* ******* ********, ******* and ************** ********, *** ********* ******* costs *** ** "***** ****** ******** and *********** ***** ***".

******* ** *********** *** *********** ********* approach ******* **** ****, ******:

*** ******* ********* ** ****-********** ** capitalize ** ***** ********. *** ********** announced ********* *** *********** ****** ** on ***** ** ******* $** ******* to $** ******* ** ******* ** 2020 *** **** $*** ******* ******** in **** *** ******.

** *** ** **** ***** ****, our *** ********** **** ** ******* pursuing ********** ************* ** ******* *** balance *****, ****** *** **** *********, improve ******* *** ***** ******* *** line ******. ***** *********** *** ** their ***** ******, *** ** **** forward ** ************* **** **** *** as **** **** ** ********.

Positive **** *** ******** *********

***** ***'* **** (****** $* ******* annual ******* **** ****), *** *** performs ** * ***** ***** *** the ******** ** * *****, ************ in ***** *******, *** ******* ******.

******, *** *** *** ******* *** fever / *********** ********* *********, **** no **** ********** ** *** ** home **** *****. ****** *** ********* results, **** ** * ******* **** that *** ******** ******** ** ********* to ******.

Vote / ****

Comments (8)

I was extremely pessimistic about my business outlook for the remainder of 2020... and then the rioting started.

Agree
Disagree
Informative
Unhelpful
Funny: 5

With the dismal product stock of DSC products at Anixter, we've had no choice but to switch to Honeywell which we purchase from ADI. I can imagine we are one of many that have had to shift purchases to ADI which would help their numbers.

Agree: 1
Disagree
Informative: 1
Unhelpful
Funny

Heard Honeywell alarm products are becoming difficult to find because of the DSC issues.

Agree
Disagree
Informative: 1
Unhelpful
Funny

This is a good analysis for the remainder of 2020. Here's why, so we can gain perspective by tracking all distributors distribution on one graph so we can review and comment on a broader spectrum? I could care less what integrators are doing what and how(other than scratching their heads). If the security industry distribution can be scaled that would give some a much needed hindsight metric to ponder and poke.

Agree
Disagree
Informative
Unhelpful
Funny

Said a lot without saying much...

Agree
Disagree
Informative
Unhelpful
Funny: 1

Distribution indeed is a good barometer of industry nuances. It is still a mixed bag of expectations. Meaning, many wholesalers are still affected by the same level of lockdown/opening we all are. Several have touted fever technology products as a prime Q2 lift element to offset delayed project business.

That said, retrofit and upgrade business (heavy on commercial touch-free access and residential home experience) is helping keep a lot installation companies in business while we all await new work to return, albeit with a smaller end user base.

As a rep firm, we are catering to the interim opportunities by making dealers aware of legacy account add-on solutions as well as Fever/Mask/Biometric technology.

Agree
Disagree
Informative
Unhelpful
Funny

As a ADI customer they are not stocking all kinds of products as before, so no doubt helps cash flow. Most likely on purpose.

Agree
Disagree
Informative
Unhelpful
Funny

ADI Response:

There was no fundamental change outside of market driven demand. Our performance in Q2 could not have been achieved without proper inventory management across our entire product portfolio.

Agree
Disagree
Informative
Unhelpful
Funny
Login to read this IPVM report.
Why do I need to log in?
IPVM conducts reporting, tutorials and software funded by subscriber's payments enabling us to offer the most independent, accurate and in-depth information.
Loading Related Reports