Anixter's Q3 2009 Financial Results Reviewed

Anixter [link no longer available] is a growing force in the video surveillance market who clearly is benefiting from the transition to IP video. However, Anixter's growth rate has shrunk significantly over the last 9 months.

Since Anixter carries a broad range of IP video products, they are a good proxy for the overall IP video market.

Overall, Anixter had 2008 sales of over $6 Billion USD. Only about 10% of Anixter's total sales are in security/surveillance as it is a growing but minor part of Anixter's overall electronic cabling, electrical wiring and OEM Supply business.

According to Anixter's 2008 annual report [link no longer available], security growth was robust: "During 2008 our sales grew by approximately 21 percent and we ended the year with an annualized sales run rate of nearly $650 million." Actual 2008 sales are somewhat lower than $650 million since they choose to characterize it based on run rate.

According to Anixter's Q3 2009 earnings call transcript [link no longer available] growth was essentially flat in Q3 2009: "Exclusive of foreign exchange effectives, security related sales increased by 1% compared to the third quarter of 2008."

For the first 9 months of 2009, growth in security was moderately better, "Year-to-date through the third quarter, security sales have increased over 4% with stronger growth in EMEA and the emerging markets." This implies that comparative growth in security sales weakened in Q3 compared to the earlier part of the year.