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. *******:** **** ******** ********* ******.

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

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