What **** *****
*******'* ******** ****** ******** chances ** ****, ****** out ******* **** ** 2014 ** **** **** could *** *********. ******* a *********** ** ******* to *** ****-**** ******* problems *** *** **** of *** *******, *******'* revenue ******** **% ** 2017. ******* ** ****, Arecont *** ** ****** able ** *** ***** debts *** **** * buyer **** ***** *** them ****** ** ***** what **** ***** (***** $73+ *******).
What *** - ********** **********
** *** ******** **** for *******, ******* *** agreed ** **** ** Turnspire ******* [**** ** longer *********], * ******* that *********** ** ******* around ********* *** *** such ********. *** **** is **** **** **** enable **** ** *** their *********, ***** ********* creditors, ********* *** **** loan ******* *** ******* them *******/****** ** **** themselves ******.
Bidding ******* - ********* *** ******** *** ***
** **** ** *** Chapter ** **************, ********* to **** **** *** company's ********* ** *** back *** **** ****, there **** ** * bid ******* *** ****** who ***** ** ********** in *******. *******, ***** an ********** ****** ******* contacted **** *** ********* bidders ** *** **** month, ** ** ********, though ********, **** ** outsider ***** ***** ******.
* ******* *****, ******* ****** **** ***, ** ******** ***** the ****** ******* ******** for ******* ******, ********** difficult ** *** ******* trade ***********.
Source *********
******* ******* ****** ******** LLC, ** **. ****** Website*** ****** ********* ** the ******* ** ******, with**** ******** ********* ********* details****** ******* ** ******** showing * **** ** debtors *** ****** *******.
Revenue **** **** $** ******* ** $** *******
*******'* ******* **** **** $72 ******* ** **** to $** ******* ** 2017, * **** ** over **% **** **** year. ******* ******* ********* revenue ******** ***** ****, when ******* *** **** $64 ******* ******** [**** no ****** *********]. **** that * **** ****** (2011 - ****), ***** net ******* ****** *** ~12%, *** ***** **** the ******** *******.
Owe $**+ *******
*** ******* **** ******* owes $**+ *******:
**** ** ****** ******** for ***** ************ *************, as **** **** *** unnecessary ** **** **********, used ********* ** *** benefit ** *** ******** and ************.
Key *********
*** ****** **** ********** a ****** ** *** brand ******* *********:
*******, *** ****** ** all ** ***** ******** are *******, *.*., ***:**** ****** ******* ******* Out ** ******
Blame ****** ** ******* + **** ******
*** ******* ***** *** primary ***** ** *** Chinese *** *** *** chip ********* (*********** ** Arecont's **** ********):
** ******* *** ******* significant******** ** ******.
Blame ** ******* *** ********* ******
***** *** **** ** Chinese ************* *********** *** impacted ***** ******* ************, the ********* ******* ************* (such ** ********* **** Axis *** ********) **** continued ** **** ******* that. ** ********, *******, who *********** **** ****** as ********** *** ***** experience ******,****,***********, **** **** *** big ******** *** (*** ousted) ******* ********** ******* to **** ** *********, offering ******* *******.
More ***** ** *** **** ****
*** ******** *** ******* to ***** *** *** 2014 **** ***** *** no ********** *********** *******, as *** ****** ****** explains:
******* **** ****, **** if *** *** ***** mistakes **** ****, ***** would **** **** ** need ** *** ******** or ** ****** ** pay **** $** ******* even ** *** *******'* revenue ******* **%. **** is *** *********** ******* of ****** **** ****.
Headcount ****** **%
** *** **** ****, Arecont *** *** *** headcount ****** **% ** reduce *****:
Founders ****** ***
***** *** *********, *** 'settlement' ****** *********** ***, ** ***** reported **** *****:
For **** - *** ******* *********
**** *** **** *****, Arecont's ****** ******* ******* to *** *******:
Arecont ******* ****** ** *******
***** *********** *********** *** users *** *****, ******* finally ********** ******. *** market ** ***** *** video ************ *** ******* had **********, **** *************, and **** **********. *** fact **** **** ***** not **** *** ***** their ******** ** ***** own *****. ********* **********, ****** **** ****, have ** *** ** blame *** **********.
Future - ****** **** ******
*** **** **** *** Arecont ** **** ******* the ******** **** ** clear *** ** ****-********* that **** *** ** addressed *** ***** (******, the ******** *** ******* being *** ** **** the ******). *** *********, though, ** **** ******* 11 ************** *** ****** to ** ****** ** a ********** ********** **** them ** *** ********* and ********* *********.
** **** ********** **** as *** ******* ******** in *** **** *** months *** ****** **** the **** ** *********.
Poll / ****
Comments (32)
Undisclosed Manufacturer #1
To Arecont's credit, they gave the industry excitement in megapixel resolution and multi-imager solutions. Both are now widely available and less expensive.
Then they took that huge business advantage, along with being "American Made" and drove a fatal customer service/quality control stake through its heart, over and over again.
What could they possibly release that could equal either of those?
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Undisclosed #2
From the press release:
"Industry leader" and "bankruptcy filing" are an odd combination. Maybe it is just me, but when companies issue press releases where they try to proclaim themselves as the "leaders" in things like this, it makes me think they are anything but "leaders".
Stop doing this. Nobody cares that you think you are the leader is some contorted category, particularly when it is easy to see from the content in the rest of the release that you are anything but a "leader". (I am saying this not just to Arecont).
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Tom Sharples
Unless the "made in USA" aspect somehow becomes a dominant factor over and above common sense, these guys are toast. Maybe the brand name and some of their designs can be applied by Hikvision to a line of cameras made there. Too bad. They have had a number of chances to fix this including a close friend of mine who they had considered as engineering VP 4-5 years ago but ended up not hiring. This is what happens when you want to keep all the marbles for yourself and have an NIH attitude.
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John Honovich
I added a new section on the 2014 loan as I think it is important to appreciate its role in leading to this situation:
The founders are further to blame for the 2014 loan which had no productive operational purpose, as the filing itself explains:
Without that loan, even if all the other mistakes were made, there would have been no need to pay interest or be forced to pay back $73 million even if the company's revenue dropped 40%. That is the fundamental benefit of equity over debt.
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Fabian Muyawa
IPVMU Certified | 05/14/18 09:36pm
I remember purchasing some cameras from Arecont constituting 180 degrees and 360 degrees which were intended for outdoor installation. Unfortunately, the package came with wrong wrong brackets which costed us time and money to ship back for the replacement. How knows! could be human error but, costly any way.
Again the performance of the multi image sensor cams appeared to be unstable coupled with unsatisfactory Tech Support. I think a lot required to be fixed.
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John Honovich
Contrary to his LinkedIn description:
(1) As the bankruptcy filing itself shows Arecont was already in trouble while Schafer was still completing 'his assignment':
(2) Revenue fell 40% in 2017 and by the time Schafer was ousted in October 2017, Arecont well knew their deep problems:
(3) Schafer was the public face and head of Sales, Marketing, Service and Quality. His tactic, over and over again, was to pretend that everything was great.
For years, anytime integrators complained on IPVM about Arecont's quality, Schafer offered some excuse (user error or old news or people just were against them). The man simply could not take responsibility.
A month before Schafer was ousted, at ASIS, in the midst of rep firms and employees resigning or being let go left and right, Schafer was all happy talk. Things are great, blah, blah, blah.
Best summing up Schafer is how he handled IPVM's report on Arecont Getting Kicked Out of Google:
Schafer is now selling consulting services to security companies. Be warned.
Note: I plan to make this a discussion later to highlight on its own.
NOTICE: This comment has been moved to its own discussion: Scott Schafer Responsibility In The Fall Of Arecont
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Undisclosed #4
Can’t say I’m surprised ;)
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Undisclosed #2
Curiously (or not), Raul Calderon has not been named CEO in this, he is still COO. It seems probable that Arecont will get a new CEO soon. The problem then is that they will likely find a "turnaround expert" CEO from outside the security industry, which makes it unlikely that Arecont resurfaces as any kind of dominant player.
Their recent moves of OEMing OpenEye's cloud VMS and cheap low-end Chinese hardware are not laying the groundwork for a strong return.
I would wager that Arecont ultimately gets sold off to some other company within the next year or two. They may make some motions around revamping their product line with new multi-imagers that use more current technology (e.g. not some FPGA-based approach) and other things, but I do not see them having the runway (financially, reputationally or otherwise) to truly turn the company around into a stand-alone entity.
Too bad, I will really miss the free drinks in their booth at trade shows.
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Larry Tracy
Nice work on laying this out John.
What is the history in the video business of turning around sick businesses ?
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Undisclosed Integrator #8
With them moving assembly more to Asia, is this going to hurt their opportunities with installs that have Buy American and similar procurement requirements that gave them an advantage?
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Undisclosed #2
And now Arecont has some new debt :)
Arecont Gets Initial $4M Ch. 11 Loan
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John Honovich
Comeback? :) Top billing in today's ADI flyer (though surely Hikvision or FLIRua will resume next week):
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