Analog CCTV Manufacturer's Revenue Shrinking

•Published Aug 31, 2009 00:00 AM

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4 publicly traded companies manufacturing DVRs and analog cameras (March, Samsung GVI, Techwell and Vicon)show clear declines in total revenue compared to last year. The average decline is approximately 8 -14% with one company dropping as much as 39%.

March Networks

Following 2% increase in revenue in Q1 2009, March Networks revenue dropped 14% in Q2 2009 compared to Q2 2008. This significant drop was driven primarily by a steep fall in North American Revenue. Read our March Networks Q2 and Q1 reviews for additional details.

Samsung GVI

In the first half of 2009, Samsung GVI's revenue was down 8% relative to the first half of 2008 (Q1 09 revenue was about 7% less than Q1 08 while Q2 09 revenue was about 9.6% less than Q2 09 revenue). Read the Samsung GVI 10Q [link no longer available] for details.

Samsung GVI is on pace to do $45 Million USD in revenue in 2009 (down from about $50 Million USD in 2008). However, their market capitalization is under $10 Million USD (as of Sept 1, 2009).

Techwell

Techwell's surveillance division suffered drops in revenue of 35% in Q2 2009 (compared to Q2 2008) and 39% for the first half of 2008. Read Techwell's Q2 10k report [link no longer available]. In 2008, total surveillance revenue was about $50 M USD annually. This year, Techwell is only on pace for $30 M USD annual revenue.

Examining their geographical revenue breakdown, it appears they a lost a major or major Taiwanese distributor in the last year. For instance, in H1 2008, 33% of $32 M USD came from Taiwan. In H1 2009, only 16% of $22 M USD came from Taiwan. That's a drop in $7 M USD just from that 1 region (70% of their total revenue drop). By contrast, revenue from China increased from about $10 M USD in H1 2008 to about $12 M USD in 2009.

[Note: Techwell's Q2 PR announcement emphasizes that revenue increased from Q1 to Q2. However, that is misleading and they know it. As they acknoweldge in their 10Q, Q1 revenue is lower because most of their customers are in Asia where Lunar New Year celebrations lower Q1 business.]

Vicon

In Q2 2009, Vicon's revenue dropped 9%. In the past 3 quarters (Q4 08 to Q2 09), revenue dropped 4.5%. As such revenue decline accelerated in Q2 09 relative to Q1 09. Read the Vicon Q2 10Q for details.