Avigilon 2014 Financials Disappoint Investors

Author: John Honovich, Published on Mar 04, 2015

Hikvision admits their equipment got hacked in a large government deployment - stock down just 7.5%

Avigilon announces revenue up 42% - stock down 15%

If you are an Avigilon investor, you just cannot win over the last year.

In this note, we break down Avigilon's most recent financials including:

  • Their real growth rate
  • Becoming a US manufacturer
  • Their position on the Canon / Axis offer
  • OV patent licensing revenue
  • The long awaited new CFO

********* *********** ********* *** ******** * ***** ********** ********** - ***** **** **** *.*%

******** ********* ******* ** **% - ***** **** **%

** *** *** ** ******** ********, *** **** ****** ******* *** **** ****.

** **** ****, ** ***** **** ********'* **** ****** ********** including:

  • ***** **** ****** ****
  • ******** * ** ************
  • ***** ******** ** *** ***** / **** *****
  • ** ****** ********* *******
  • *** **** ******* *** ***

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

Financial ******** 

*******, **** ******* *** $***.* ******* ** **% **** **** year. Details:** **** ******** ********* ******.

*** *** *** *******, ******* *** $**.* *******, ** **% year **** ****. *** **********, ** **** *** **%, ** **** *** **%, ** **** *** **% *** **** full **** *** ~**%.

Their **** ****** ****

** ******** ~**% **** ****** **** *** **, **** **** year, ***** ********* *** (********) ******** ******** ************ *** ************. Unlike ****, ******** ******* ** ******** ******* ** ***** ******** terms ** ***********, ******** ** ******* ***** **** ****** ****.

*** *** **** *** *****, *** ********** ** ****, ******** benefited ******* **** *** *** / *** ******** ****. *** chart ***** ***** *** ****** ********* ********** ********:

** **** ***** **** ********'* ****** *****, **** ********* ****** all * ***** **********:

***********, **** *** *** ***** **** ********* *** ******* ***********, which ***** ~$** ****** ** ******* *************.

** *** **** ****, * **** ****** **** ** ** slightly ***** **% ** ***** ***** **** *** *** ***** surveillance ********, ********** ***** *** ******* ****** ******** ***** ***********. However, ********'* ****** **** ** ***** ******* ****, ** **** or ****, **** **** **** **** ***** **** * **** prior.

Becoming * ** ************

******** ** ******* * **,*** **** ** ************* ******** **** they ****** ** ** ***** *********** ** ** ** ** 2015. **** **** **, ** ********, ** ***** **,*** **** facility ** ******. ******** **** ******** ***** **** ******* $* billion ************* ********.

*** ** ******* ********'* ******* ******, ** ***, **** $*** million **** *******, ~**% ** *** *******'* *****.

Canon / **** ********

********'* *** *** *** ******** ** *****'* ********* ** ********* and ***** ** ******* ****, ********* ****:

"** ********* ***** *** ******** *** ********** ********** ** **** up **** ** ***-**-*** ********, **’* *** * ******** ******** to **** ***** ********** **** ***** **."

** ******, ***** ****** **** **** *** ****, ********* **, believe ** ** **********. ******, ** ********'* *** *****, * move ** * ******** ******** **** ** *********** ** *******.

***********, ********'* *** **** ****** *********** **** ****:

"*** **** ***** ** ********** ******** ***** *** ********** *** founders *** *** ********** ***** *** * *** ******** *** become ******* **** ********* ** ******** ******* *** ********."

OV ****** ********* 

***** ** *** ********* ************, ******** ****** ***** *********** ****** on **'* ********* **********, ********* ****** **** ~$** ******* ** *********** *** **** *.** *****, **** **% ** **** ******* coming **** * (** *****) *************.

** *** ****, ******** ******** ********, ******, "*** ******** ******* of *** ********* ** -- ** ***** ** **** ****** year ** ******** ** ** ********** ******." **** ********** **** they ** *** **** ** "** ****** ***** **** ******* licenses, *** **** ** **** ** * ******** ********. *** so **** **** ****** ** **, ** ****** *** ********* over **** *** ******* ** * **** ********** ****** ****** all ********."

*************, ********'* *** **** ** ***** **** ******* ********** *** not *** ******* ******* ** ***** *******. *******, ** ********:

"*** **** ********* ****** *** *********** ** *** ****** ** to ******** ********* ** *********** ******** *** ****** ***** ************ market."

*******, ** *** *** ******* *** **** ***** *** ***** patents ** ********. ** ************ **********, *** ******** *** ** ** ******* ** ***** ****** in ***** ***** ** ******** *** ***** **** ***** *********** are, ** ** ***** *****, ** ********** ** ********'* *******.

The **** ******* *** ***

*** **** ******* *** *** *** ***** *** **** *****.

********'* ***** ********** ***** ** ****** *** **** ******** ************ **** *** ***** ************** **** ** ** ********. ** **** ****, ********'* ***** CFO *** **** **** **** ** '******* ***'. ****** ******** did**** * ** ** ********* **** ****, *** ******* *** ** ***** ***** ** months *****.

******** *********, "** *** **** *** ** *** *** ***** and ** **** *** *** ********** * ********* ********* ** takeover **** ********. *** ****** **** ****** ****."

Stock *****

******** ***** ********* *** ******-******* ****:

Avigilon ******** *** ******

** ****,******** *** * $*** ******* **** ****.

*** ******* ** ******* **** **** **** *** *****. **** 'only' **** ** **** ** * **** ** **% ** get *****.

(******, ** ** **** ****** ** *** *** ********'* ***** definition ***** ** * $*** ******* ****** *** **** ** Q4 ****).

****** ***, ********'* ****** *** **** **********. **** ***** **** already, **** *** *** ** *** ******* ************ ********* ** the ***** *** ** ******** ********* **** ********* *** **** get ***** ***, ** ******** **** **** *********** *** ********.

*** *** ********* **** ** ******* ************'* ******** *****. *** **** *** ** '******** ** *******', *** ******* just ** ********** ** ********** ****, ******** **** **** ** lean **** ** *** ******* ******** *** **** ************ ** differentiating ** *********.

** ** ***** *** ***** ** **** *** ******** **** do **** ********* *** ******* ********* *** ******* *** **** type ** ****** **** ** *** ** ***** ***** ******.

Comments (3)

** ** ******** ********, *'* *** ************ ** *** *******'* financials. **** *** ********* ** ***** ******** *** *** ** earlier *****' *******, **** *** ******* ****, ******* ****** ***** ... **** *** ****** *** *** ** **** **** *** them ***** ** *** *** **** *** ********, ******** *** service - *** **** ******* ** **** *** **** ****.

**'* *** *** "*********" *** *** ************ ** **** ** "speculators" *** *** ******* *** *****-**** *****. *** **** *** analysts **** ******* ******** ** * **** *** **** ****** it *** ******* ***** $** * *****. ***** **** *** company's ******** **** ***** ** **%, *** **** *** ** target ** ****** ****** ***** ** *** **** *** *****, and *** ******* *** ******* ** ****** ***** *** $** a ***** ** *** ******* *** *********?

*** **** ********* **** ***** ***** ** *** *** **** who **** * *** ** ***** ** *** ******.

** ** ******** ********, *'* ** ***** ** *** *** company's ****** ****** **** **** *** ***-***** **** ***** *** a ***** ** * ***** *** **** **** :)

**'* ********* *** ** ******* ******** ***** ****** **** * company's *******. **** ** *** ****** ***** ********.

**, ***, **** **** *'** ** **** ***'* ****: "************* ******* *** *** **** ** *******'* *******" :)

** *** ***********, ***** *** ***** *** **** *******, ** does ******* *** *** ** ********* / *********** **** ************. As * ******* ** ** ** *******, * ***'* *****.

** *** *** *******'* *******, ***** ** ** ***** ***** it, ***** **** *** *******'* ******** **** *** *** ****-******** products *************, *** ************.

*******, ******* *******, * ***** (*) ****** *** ******* ****** for ******** *** (*) **** **** *** ****** **** ***** steps.

*********, *** ***** ***** ************ / ******** ****** ** ******* now **** ** *** * *** ***** *** *** **** impacts ********. ****** ****, **** ** / ** ********, ****'* a ***** ******** *** ******** ******* **** * *** ***** ago ** *** **** ** *** ** ****** **********, *** it's **** ****** **** ** **** ***** **** *******.

*** ****** ***** (*** *** ****** ***** *** *** ********) are ************* *****. ***** **** **** *** ** ** ********* (Vancouver **** ****** ****** ****** ** *** **** * *****, they ***** *** ***** *********** **** *********, ***.) *** *****'* an ******* ********* ****** ******** ***** **** **** *** ** be ****. ** * *******, * ***** **** ***** **** been ****** *** ****** **** ************* ******** ** **** **** their ********** ***** *******.

** *** *** ***** *****, ****** *** ***** **** ****** will *** *** ****. * ***'* ***** **** ** ***** $2.8 ******* *** ***** **** *** ****'* **** ******. ******** is ***** ** ******* ** ******** *********** *** ******. **** may **** ** ** * ****** *** ** ******* ** investors.

****, * ***'* ******** *** * *** ******* ***** ****** $3.75 *** ***** *** ******* *** ** ********** ** * few ***** :)

*** **** *** ********* ** *** **** *** ******** **, though. *** *** ****** ******** ********* *** **, *** ****** were ******* ** **** ***** ** ***** ******** ********. ***** the ******* ** *** ****** ** *******, *** ****** **** knocked **** ** *** ***** ** ****** ** ***** *** new ********* ********.

***** *** ******* ********** ** *** ****** ******. ******* **** in ***** ** ********, *** *** ***** *** *** **** previously *********. ***** ***** *** ** *********** ** ** ***** boost ******* ** *** ******** ****, ** **** **** *****. Guess *'* **** ** *** ******* *** **** ... ***** they **** ******* *** ***** *** *** *** ** ** price *** ***** ****** *** ******.** ** ******, *** ***/*** $20s ***** * **** ***** ***** ****** ****** (****** ** estimated **+ **** **** *** **** *** ***** ** *** bad).

** *** ******* ** *** *** ******** **** *** ** suggested - ****** *** **** ** ******* **** - **** it ***** * ******** ****. ******** ********* ******** *** ** a ****** **********, *** ** *** **** ****** ******* ******** in *** ****** **** **** **** ******* ******, ** **** restrictions ** *** ******* ********** ** ***** ******* *** ******** with ******* *********. ** ****** *** ***** ***** ***, *** long-term, **** * ******** ***********, ** ** ***** ***** **** estate. *** ***** * ****** ***** ********, ** ** ****** very **** ********* *** *** ******** - *** *****, * big ****************** *******, **** ****** * ******** **** ***** *** move. ******** ***** ** * ***-** *****.

********* *** ****** ***** - *** * *** ** ** repeat **** **** ****** **** **** ** **** **** ... we'll **** ** **** *** *** **** **** ** **** them. **** **** ********** *********, *** *'* **** **** ** their ******** **** ****** ******* ****.

** **** ** *********** ** *** *** **** ******** *** shifting *********** ** *** **** ****** ** *****. ** ********** feels **** **** *** ************* **********, *** ********** - ******* riling ** * *** **** ** **** **** - **** seem ***** ******* ** ******** *** *** *****.

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

ObjectVideo Acquired by Alarm.com on Mar 14, 2017
Once potentially the most recognized name in video analytics, ObjectVideo has effectively been sold for pieces. Alarm.com has now acquired what...
Avigilon Shifts Strategy To Maximizing Profitability (Q4 2016 Results) on Mar 01, 2017
Avigilon had previously been known for big spending, hiring a large sales force and throwing lavish partner parties at tradeshows like ISC West....
The Hot RMR Company - Electric Guard Dog on Feb 22, 2017
The financiers at the Barnes Buchanan conference praised a company named 'Electric Guard Dog'. While the name sounds fairly low tech, the money and...
$18.7M PSIM Acquisition Examined (IDV / Everbridge) on Feb 06, 2017
This may be the biggest deal for a PSIM developer ever. In a segment that has disappointed for more than a decade, a recent IPOed company has...
Veracity Acquires PSIM Manufacturer on Feb 03, 2017
Most well-known for their Ethernet extenders, with their own video surveillance storage offering, Veracity has now acquired a PSIM. UK-based...
Exacq 3 Co-Founders Exit on Jan 10, 2017
Exacq co-founders David Underwood and Daniel Rittman have exited the company. UPDATE: And a 3rd co-founder is now also leaving. In this note,...
5th Acquisition for ACRE, Adds ComNet on Dec 14, 2016
Mercury, Siemens Security, Vanderbilt, ACT and now ComNet. While other companies are trying to get out of security, emerging conglomerate ACRE...
Milestone Favorability Results on Dec 06, 2016
In our second installment of manufacturer favorability results (first was Pelco), we turn to Milestone. 100+ integrators rated and explained what...
FLIR Acquires Drone Manufacturer For $134M on Dec 01, 2016
FLIR has acquired Prox Dynamics, a Norwegian maker of small military-grade drones, for $134M.  FLIR president Andy Teich provided additional...
Avigilon Stock Surges 40% On Strong Growth (Q3 2016) on Nov 15, 2016
The roller coaster continues. After a brutal Q2 heading down, Avigilon's Q3 growth is strongly up. Inside this note, we examine what powered...

Most Recent Industry Reports

IP Cameras Lose Buy America Protection on Mar 28, 2017
IP Cameras have lost the US government's 'Buy America' protection as the Security Industry Association (SIA) successfully lobbied the government to...
2Gig Intrusion Megatest (GC2 & GC3 Panels Tested) on Mar 28, 2017
2Gig is one of the most widely used intrusion systems, with two product lines that are the main offering of many alarm companies, huge national...
Anixter Favorability Results on Mar 28, 2017
Anixter's direct sales and integrator anger about it has been in the news recently: Anixter / Bosch Sells Direct to Amazon Anixter Touts...
Save $50 - IP Networking Course May 2017 on Mar 28, 2017
This is the only networking course designed specifically for video surveillance professionals plus it includes live training, personal help and...
Chinese Government Spies on Churches With Video Surveillance on Mar 27, 2017
The Chinese government is using video surveillance to spy on churches in China, reports UCANews, explaining: The [Chinese government]...
Hanwha Wisenet X Tested on Mar 27, 2017
Hanwha has released their latest generation, the Wisenet X series, powered by their new Wisenet 5 processor. This new series claims improvements...
Burglar Alarm Sirens Guide on Mar 27, 2017
Sirens are used to alert users to an alarm condition. In this note, we examine how to choose, locate, and install alarm sirens, including Siren...
Dahua Distributor Bad Breakup on Mar 27, 2017
A Dahua distributor in Europe claims that Dahua took over his top customers, revoked his distributorship status, and left him with a large amount...
Everbridge Mass Notification Service Examined on Mar 24, 2017
Everbridge is expanding in the security space. In January 2017 Everbridge acquired PSIM platform IDV, and have also begun integrating with other...
Hikvision Removing Auto 'Phone Home' on Mar 24, 2017
Facing pressure over their cameras auto phoning home and their Chinese government ownership, Hikvision has begun quietly removing automatic...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact