Anixter Security Business Struggling

Author: John Honovich, Published on May 05, 2014

Just a week after their key partner Axis turned in disappointing results, mega distributor Anixter's financials reveal significant struggles in their IP security business.

Over the past decade, Anixter has emerged as a major distributor in this industry, move ~$800 million of security products annually. However, now they have hit a wall.

In this note, we dig into the financials, management's explanation and the impact of this situation.

Anixter Financial Details

**** * **** ***** ***** *** ******* **** ****** ** disappointing *******, **** *********** *******'* ********** ****** *********** ********* ** their ** ******** ********.

**** *** **** ******, ******* *** ******* ** * ***** distributor ** **** ********, **** ~$*** ******* ** ******** ******** annually. *******, *** **** **** *** * ****.

** **** ****, ** *** **** *** **********, **********'* *********** and *** ****** ** **** *********.

Anixter ********* *******

[***************]

******* ******* ********* ~$* ******* ****** *******. *******, ******** ** only *** ******* ** *** ***** ** ******* (*** - Enterprise ******* *** ********).

******** ** **** ******* *** ~$*** ******* ***, '********* ********' year **** ****. ** ***** *****, ********* ******* ********'* ******** overall ** ****.

**** ********* * ******** ***** *** *******'* ******** ********. **** in****, ****** *** ***** ** **%*** ******, ** *********** ** ~**%. ***, ***** ** *********** ** ******.

Anixter ********** ******** ***** ********

******* ** ****** **** ***** *********, ** **** ******* *** repeatedly********* ** ***** ** **** ******** ****, ******:

  • "**'** *** *** ********** ******** ** ****** ***********." *********, **** are ************ ****** ** *** / *** / ****** ***** security ******** **********.
  • "** **** ** ********* *******."
  • "**'** ******* *** ***-******. .... *** **'** **** ****** *********** to ****** **** ***-******."
  • "******** ****** ** *** **********, *** ** *** *** ***** **** ** ***** **** the ***** *** ***-**** **** ** **********, ******** **********."
  • "** *** * ****** ** *** *.*.,****-******* *******. *** ****-**** ******* **** **** ** *** ********** market *** *** ***** *** ***-**** ********** ******. *** ***** security ***** *** ******** ***** ********** **** ** **** ******."

Market ************

******* ******* ** ** ****** * ****** ** ********** ******:

  • *** ********** ****** ** ** ****** ** ********** ** ** used ** **. *** ****** *** **** ********** *** ***** to ********** ** ** *** *** **** ** ** ******* done, ** ** ****** ** *** *** **** ****** ** years **** (*.*., **** ** **** **** ** / *** now?)
  • **** *** * *********** **** ** ***** ********* ****** ** security *** ***, **** ** ******* (******* ******, ******* ****). ******* ***********, **** ** ********* ** *** ********** ******, the **** ***** ****** ** **** ***********.
  • ******* *** ***** **** ** *** ***** *** ***-**** ************* * *** ** ***** *** **** '***********' *** ******* / ****** *****. ** ******* ****** ***** / ***** ** deal **** ****? *** ** **** ****** **** ** ***** those *****, ** **** **** ** ****** **** ** ** ADI **** ******* **** ** **** ******? (****** ** **** **** ******)

******* ***** ********* *** *********. *** ********, *** ***** ****, gives ** *** ***** ** ***** ********** ********* ***** *** extensive ********* ********, **** ** ***** ******* **** *********** *******.

***, ***** *******'* ***** ** ********* ****, ** ****** *** results **** *******. *******, *** ********** ****** ******** **** ******* 10 - **% ****** **** ************ ** * ******* *** Anixter ** ******* ** ********.

Comments (8)

Undisclosed 1 Integrator

| 05/05/14 01:08pm

"** *** * ****** ** *** *.*.,****-******* *******...."

** ****** ** *********, *** **** **** **** ****-**** *** Anixter *** *** **** ** **** ** *** **** *******?

Undisclosed 2 Integrator

In reply to Undisclosed 1 Integrator | 05/05/14 01:17pm
****-**** *** ****** **** * ******** ** *******.

Undisclosed 1 Integrator

In reply to Undisclosed 2 Integrator | 05/05/14 01:22pm

******. * **** ***** **** ****, *** **** **** ** know.

Undisclosed 3 Integrator

| 05/05/14 04:11pm

** **** ************ **** **** ******* ** *** ***** *** data ******* **** (*********, *****, ******* *** *** *********) *******, on *** ******** ****, ***** ***'* **** ********** ***** ***** than ***** *********. ** **** ***** **** ** *** ***** purchasing ** *** ******* **** ******* **** **** **** ***** quoting.

*** *******, * ** *** *** **** ****** ** ***** conversion *** *** *** *** ******** ** ** * ******** complex ** ****** **** ******* **** ******** ******** ********, ** varying ***** ** ***** *********** (*********/**********/*********, ***.

** *** ********, *** *** ***** ** '***'* **** ****' but ** *** **** * ****** **** ********* ** **** with *********** *******.

Undisclosed 4 Manufacturer

| 05/06/14 01:46pm
****! ***** **** ** ***** **** ******** *** ******** ******** will ** **** ***. ** ***** ** ******** ********...*******'* ***** team ***** ********** ** "****** ********." ** *** ** *****, all * **** **** **** ** ** ****** ******* ************* when ** ******** *** *********. **** *** *************, **** ****** meetings ** *** **** ******, **** *** ***** ****** *** pushy, ******** ***** ******* ** *****. ***, **** ***** **** direct ** ***-*****, **** ****** **** ******** ** ***** **** don't, *** ** ********* *********** ***** *******. *** *** ********** have **** **-******* ** ***** *****. *** **** ***** **** product ***** ***** ** **% **** ****. ******** **** ** the *********** **** *** ** ***** ************ *** ********* (********* discounts *** *********** ** **** ********, ******** ****** **** ****** up *******, ***.). **** ************ *** ******* * ********* **** and ***** **** ****** ******** **** *** *******.

Undisclosed 5 Integrator

| 05/06/14 02:32pm

** *** **** **** *** ********? (*****/*** **** ***********). ****** be *********** ** *** *** ****'** *** *********** *** ****** our ********* ****** *** ***** *** *** *** *** *** trust & ********. ***** **** ******* ** ** *** * healthy **** ** ***** *** *** ***** ****. * **** didn't **** ****-**** *** * ******** ** ******* *** **** now *** **** ** ** **** ** ************ *** ** buy **** (*** **** *** *** ***).

Undisclosed 6 Manufacturer

| 08/11/14 01:12pm

* ***** **** ***** **** ** ********* ****** ****** ***-** that ******* **** ****** ***-**.

** * ***** **** ***** *** ** ******** ** *** security ******!

Undisclosed 5 Integrator

| 08/11/14 03:20pm

**** * ****! ******* *** ***** ** *** "** *** buy" ****. ******** **** ******** **** ** ** ** ****** to ********* **** *** **** ******** ****** & ***** ** the ***** ** *** **** *********** ** ***** **** - they ***'* ** *******.

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