Avigilon Breaks $400 Million Revenue, Quadruples Profit, Weakens Competitiveness

Author: John Honovich, Published on Mar 07, 2018

The last annual Avigilon financials are here. With the imminent Motorola acquisition completion, Avigilon will cease to be an independent publicly traded company.

But Avigilon's tactics to get acquired has significantly impacted both their financials and their competitiveness. While Avigilon has successfully and significantly increased their profits, they have done it at the expense of growth and investment into sales and R&D. In this note, we examine the tradeoffs, comparing it to Axis (who recently broke 1 billion revenue) and examining how this will impact Avigilon as a Motorola subsidiary.

$400 Million Revenue

Avigilon did $408.6 million USD revenue in 2017. 5 years ago, in 2012, Avigilon just did $100 million, meaning the company quadrupled revenue in 5 years for a compounded annual growth rate of 32%.

2017 Growth Rate Just 15%

******* ****** ******** ********** *** ****. **** *** ******** ******** *********** **********, ******** **** ***** to ** ** *********** ******** ****** *******.

*** ********'* ******* ** *** ******** *** ************* ******** **** their ********** *** ***** ***************. ***** ******** *** ************ *** significantly ********* ***** *******, **** **** **** ** ** *** expense ** ****** *** ********** **** ***** *** *&*. ** this ****, ** ******* *** *********, ********* ** ****** (*** ******** ***** * ******* *******)*** ********* *** **** **** ****** ******** ** * ******** subsidiary.

$400 ******* *******

******** *** $***.* ******* *** ******* ** ****. * ***** ago, ** ****, ******** **** *** $*** *******, ******* *** company ********** ******* ** * ***** *** * ********** ****** growth **** ** **%.

2017 ****** **** **** **%

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

*******, ********'* **** ****** **** *** *** ***** ***** *****, at **** **% ** ***** **********, **** **** ****'* **% growth *** ****'* **%.

Profits **********

** *** ******** **** *** ********, ***** *** ****** ******* quadrupled **** **** $* ******* ** **** ** $** ******* in ****. ***** *** ******* *** *** * ****** ~*% but **** ****** **** ****'* ****** *********** ~*%.

Headcount *******

*** *** ***** **** ****** ****, ******** ********* / ********* declined **** **** ****, ** **, ** ****:

** *** *,*** ****-**** ********* ** ** ******** **, ****, compared ** *,*** ****-**** ********* ** ******** **, ****.

** ********, ** ****, ******** ***** * *** *** *** employees.

R&D ******** ***** **** **% ** *% ********

********'* **** *&* ******** *** ****** **** ******** ** *** previous ****'* ****** **% ******:

Sales *** ********* ******** **** *%

******** *** *** *** ****** ** ***** *** ********* ********* as ****:

  • ****: **%
  • ****: *%
  • ****: *%

**** **** *** *********** ***** ******** *** ******* **** ** different ***** ** *** ************.

Surge ** ***** *****

** *** ******** ****, ********'* ***** ***** *** ****** ***** they ********* *********** **** *&*, ***** *** *********.

************ ******* ********** **** *** ** ************* ******* ****, ***** ***** ***** *** ~$*. * **** later, *** ***** *** **** **** ******* ** ~$** *** share, ********* ****** ** ********* ** *************.

It ******

*** **** *** ***** ****** ********* ****** ********'* ******* ****, it ***** *** ********** ********* ** ** ******* ********'* $* billion *********** *****. ** ******* ****** *** *** ********* ** selling *** *******, ***** ******** *** **** ******* ** *** more **** * ****.

Weakened ***************

*** ******* ** ******** *** ******** *** ***************. ***** **** profits ******* ****** **** ******** ** ***** ******** *** ******* development. ************** ********* ***** ********* ********** **** ********** *** ***** it ****** ** *** ****** *****, ***** ** ***** *** products ** *** ******* *** ******** ***** *****.

Vs ****

**** ** *.** ****** (** *******) **** ********, **** *** same ****** **** *** *** **** **** (**** **% ** local **********) *** ****** *** ******* (*.*% ** *%) ***** Axis **** *&* ******** **% *** ***** *** ********* **%, far **** ********** **** ********'* *********** *% *** *% ********.

*** ***** ***** ***** *** ********'* ****** **** *** ******** over *** **** * ***** ***** **** *** ************:

Motorola's **** ****

***** ******** *** *********** ****** * ****** *********** ***** *** weakened ***************, *** **** ******** *** ******** ****** **** ** what ******** ***** ** ** **** ********. ** ********** **** *** **** *** *********, ******** *** * ********* focus(****** ****** / ***** ******) *** * ********* ******* ***** (sell *** ******* ******) **** ********. ***** *** *** **** money ******** ********* ** ******** **** ** *** ** ************* where *** ******* ***** *** *** **** *********** ******** ******* and ********* *** ** ****.

Comments (6)

* *** ******* ** * *** ***** * ***** *** where ******** *** ***** ** ** ******* **** **** ********* at * **** ***** ***** **** ** ***** *******. ******** was ** *** **** **** *** ***** ****** ** ***** into *** **** ****** ******** **** **** ***** ******** ******** communication ********* *** ************* **** ****** ******, **** *** **************. The ******** ************** ***** **** **** ******* ***** **** *** sold ********* *** * **** ** ***** ******** ******** **** not ****** ******* *** *** ***** *** ****** ****** ********. That ******** ****** *********.

******** **** **** *** ***** ****** **** ** ******** *** and **** ********* ******* ****** ********* *** ********* ****** *********** team ** *******. ******* **** *********** *** ********* ****** ***** line ******* * *** ** *&* ***** **** **. ** doing ** **** ******* ** ********* ********* ** ******* ***** network ***** ******** **** ***** ******** ****** ** *** ******** Motorola ***.

* ** **** ***** **** ******** ** *****, ***** **** Avigilon ** ********** ************ **** ***** *** ********:

***** ** ********: *** ******** **** *****!

**, ***, ****!

******* ******* ** *********** ******** **** '******** *************' ** *** security ******** ******** ******** ***, **** * *** ********, *** disparaging ******* ******** ************. **** ******* *** **** **** ** "y" **** ** ****. **** ** *** ***** ****.

******* ******* **

**** ******** ********, ** *** **** **** *** **** '*******' means? * ******** **** ****.

** *** **** ******** ********** ** *** ***** ********'* ******* headcount *** ********* *** *********?

* ******* *** ******** ***** ******** **** **** *******. *'* hearing ***** ******** + ******** ***** ***** ******* ********. *********** to **** **** ***** *** **** ********* ******.

**** *** * ***'* ***** ******** **. **** ** ****** to ******. ******** **** * ***** ** ***** (**** ** not) *** ** ** *** *** **** **** *******. **** does ******* (**** ** ***) *** ******* ** ***** ***** but **'* *** *** **** *****.

****'* **** ******* *** ***: ******** * ******* **** **'* own *** *** ** **** ****** *** *** ***** ** wall ****** ** ****** ************* **** * ******** ***********. ****'* a ******* ********* **** ******* ** ***** ** **** ******* this ***. **** ***** ****** ***** ******* ** *** *** vendor ***** ***** ********* (** **** ***** ** **** *** books ** *** ***** ***** ***** ****.)

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