Avigilon Bad Financial Results Q3 2015

Author: John Honovich, Published on Nov 04, 2015

Growth hit a record low, with sales expenses continuing to surge yet minimal increases in R&D.

The first financials after the death of the Schmode era and 3 executive departures (including the SVP of sales and VP of marketing) shows declining financial performance. On the plus side, this was largely expected to be bad and now the hope is for a rebound.

In this note, we examine the financials and review Avigilon's new competitive positioning.

Financials Examined

****** *** * ****** ***, **** ***** ******** ********** ** surge *** ******* ********* ** *&*.

*** ***** ********** ***** ******** ** *** ******* ****** * ********* ********** (********* ****** ** ********** ** *********) ***** ********* ********* ***********. ** *** **** ****, **** was ******* ******** ** ** *** *** *** *** **** is *** * *******.

** **** ****, ** ******* *** ********** *** ****** ********'* new *********** ***********.

********** ********

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

******** ******** ****** **** ******* *** **% **** **** ****, compared ** **% *** *** ***** ******* (** ****) *** *** **** **% ** *** ********* ** **** year. **** ****, ******** ******* ******* ** ***** ******* ************* by ******** **** ************. ********'* ******* ****** ** ****** ** the **-**% ***** ** **** ******** **** *** ******* **** the****** ************** *** *** ** **** **** / ********* ** **** one.

***** *** ********* ******** ****** **% ******** ** ***** *&* spending ******** ** **** **%. **** ** ********** **** ********'* overall ********, *** **** ****** ***** ********** ** ****, *** productive / ********** ***** ***** ********* *** ** ************. ******* important, ******** ******** *** ***** *** ******* ******* **** ****** leading **** ****** *** ****** ******* ********.

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

**** ****** **** *** ******** **, **** **** ******** **** benefits, ********'* ************* ********* ** ******. *** ****** *** ******** down **%, **** ***** '******** ********' **** **** ** *%

*******

*** ******* ******* ****** *** ******** ** ******, **** **** up **% *** *** ****** ******* ** *%. **** ** not ** ******** ********, ** **** ****** ** ****** ** be **** ** ***** ** ** ****.

Enterprise ******

********** ******** ($***,***+) **** **** ******. **** *******, **** *********** 27% ** *** *****, ******** ** * **** ***, ***** they *********** **** **%. **** ***** ********'* ********** ******** *** grown ************ (********* ** *** **-***% ****** *****).

SMB ****

*******, *** *** **** ****. ******* *** ***** ** ********** business, ******* ****** ********* ** *******. *** ***** ******* ** that *** *** ****** (********** ***** $***,***) ** ****** ******* at ***, *** ******* ****.

Impact ********** ** ***

** *** **** ****, ** ******* ******** *** ******** ** be *********** *** ********* ****, *******, *********, ***., *** ***** scale ********. ** *** ******** ****, **** **** ********** **** to, ******* *** *** **** ** ***** *********** / ******* to *** ******* ******* ********* (**** ******* ********* *** **** Dahua **** ******* ** ** ********'* **** ********* ****** (***** America).

***** ********, ****, ***. **** ****** ******* '*********' **** ********* and *****, *** ******* ***** ********** *** *** '**** ******' quality ** ***** ********* **** **** ** **** **** *** any ** *** ******* ********* ** *******, ********** ** **, in ***.

******* ** ****, *** ********** ****** **** ******** ** **** tougher, ** ***** ********* **** ********, ****, *******, ********* / VI, ***** / **** ***** **** ** ***** ***** ******* to ******* *****. ******, ******* *******'* $** *******************'* ******** ********** *************, *** ***** ******** ** ************ *****.

1000 *********

******** ** *** **** *** ** **** *********. ******** *****, that **** **** ********* "****-**** ********* ********* ** *** *********** from *** ** ** ******** **, **** ** *** ** at ********* **, ****." **** ** ** ****** ******** **** of **%+.

Expectations ****

******** ** ******** / ******* ************, ***** ******* ****** *** past ****, ***** ******* *** ******** ****, ** ***** **** it ***** ** ***** ******* *** ******** *** *****, ***** Avigilon ***** ****. *******, *** *** ****-**** ****** ** *** company, * ********* ****** **** *** *** ****** ********* ** expense *** ********** * *******.

Outlook *** ********

*** ***** ******** ** ***** **** *** ****** ********: (*) the ********** ** *** ** ****** ****** *** (*) *** rise ** *** *******. *** *** ******** *** ******* ******** pressure ** ********, **** ******** ** ******** ********, ******* ***** machine ** ***.

*** **** ** **% ******** ******** ****** *** **** *** Avigilon. **** ******** **** **% ******** ******** ****** ***** ** extremely ****. ***** ******* **% ** * **** ****** ** their ********* ****-**** *******.

***, **** *** '************' **********, *** *******-**** ******** *** ******* capabilities *** ******* ** ** **** ** ***** ** ***** a *********** **** **** ********.

CEO ********

*** ******* ********** ******** ***'* ** *** ********* ***** ************ of ******. *** ******** *** **** **** *** ***** ******* faster **** ******** ******* *** **** *** *** ** ***** numbers *** ******** **. **** ** ***** *** ****. ** the ***** ****, **** **** *** ****** *** **** **** Avigilon ** ******* ********** ** ******** *******.

**** ********** ** ********* ********, ********'* *** ********** *** **** performance, ****-****** *********** ** ******** *** **** ** *** * "great *********** *** ** *** ******."

**** ***** ***** *** ******* ****** ** *** ** *** solutions (*.*., **** / *****, ********* / **, ***** / Axis / *********), ********'* *** ********** **** ******** ******** ** being ********* *** ** ***, *** ****** **** ******** (** not ** *** **** **** ***** / **** / *********).

*********:******** ** **** ********* ******,******** ** ******** **** **********

Comments (33)

* ** ****** ** ** ********* ** *** ***** ********, but *** **** ** * **** *** ******* ***** *** rank-file *********?

** **** **** ***** *** ********? **** *** ***** ****** of ******, ** * ********* ** ****** **** ********* **********, especially **** *** ******** **** *** ***** ******?

**********, **** **** **** ****** ** **** ***** ****. ****, as ********'* *** ********** ** *** ****, ***** ******** / structure ********** **** **** / * ******* ***. ** *****.

*** **** *********** ***** ** *** **** **** *** ******** to ******** ***** ******** (**%) *** ****** **** ******* ****** (16%). *** *** *** ****** **** **** *** * *****, but *** ************ *** *** ******* *********** ******.

**** ****** *** *** **** *******. ****** ***** ******* (**** **% ******* / **% ******** currency ** ******** **% ******* / **% ******** ********). *** Axis **** ********* ***** *** ********* ***** *% ***** ******** increased **%. **** ****** ** *** **** ********* *** *********** than ********'*.

****'* *** ****/***** ** *** *** ******* ***-**** ********** ** this *****?

* ***** ***** **** ** **** ***'* ****** *** ******* or ****** ****** *** **** **** **** **** ** *********.

**** **** ******* ******* ******** ******* ** *** ** *** original ***, ***** *** $*** ******* *** * ***** ****. Up ***** ************ ** ****, ** *** "****** ******* *** **** ** $*** ******* in ******* ** ****." **** ********, ** *** **** "******* a $*** ******* ******* ***-**** ** *** *** ** ****."

**, *** ******** ** *** **** ** $**** *** ** 2016?

***** ******** *** ******* *** ** **** ** ~$*** ******* CAD (******** **$*** ******* *** $*** ******* *** *** **** ***** *** 75 + ** + ** ** *** ***** * ********).

***'* *** **** *** ***** ********. **** ***** **** **** need ** **** **% **** ** **** ** ****. **'* possible *** **** **** **** ** ** ** ***** ** neutral ** *** ******** **** ****.

**** ***** *** **** ** ******** ***** ** ***** ****** without *** **** ***** ******* *** *** *** *** ***** they ***'* ***** ****:

** **** ***** **** **** **** ***/** ****.

*** / ***, **** ***** *** $**** *** *** ** 2015, ********** ***** **** ** *** *******'* **** *****, *** they *** ******* ***** **** * *** ** **** (*** positive ** *****), * *** ** ********** ** *** **** did ******** *** **** * ****** **** *** ****** *** more *********** / ************ **** **** **** **** ******.

**** ****, ***** *** ***** ***** ** ***** *** **** 55% ***** **** ****'* ****, *** ***** ***** *** **** for ***** ******* ** ********* *** ********* **** **** *** not ** ******** ** **** ******.

**** *** ******** ** *** ****-********* *****! **'* **** ***** to *** *****...

****** ******** *** *** ****** ** ***** **** ** ******* Video ************ ******** ** *** ******* *** *** ****** ** such ********. ** *** ***'* ******* *** ****** ****** ** end-users, ***********, *** ************* ** **** **** **** **** ** in *** ****. **** **** ************ ** ** * ****** in ******* ** *****. (*** *:**)

** ******** ***** **'* ******* ** *** ******** ** ***** improve ********** *** ********...

***** **** **.**% ** $**.** ** *** ***** *** ***** results **** ********. ** ******* ******* *******'* ************, *** '******' is *** ******* ***** **** *** *******.

** ******* **** ******** *** ******* ******'* ******** ********** **** Avigilon ** ** **** ** ***** ******* ******* ** ** increasing ***********, ***** ****** ******, *** *** ********** ********** ******** at *** ********* ** **** ****.

***'* ****** *** ** *** ~$*** ******* *** ***** ** slightly **** ** **** ****'* *******. ** ** ******* *** solid ***** ************ ************* ** ** ****** ** ************ ***** than **** **** *** *** ********** *************. ** ******, **** was ******** *** ~** ** ***** *******, ** ******** *** still ********** **** *** **** *** ********* **** ****.

**** ******** ********:

****://**.********.***/********-*********/*****-********/*****-********-*******/****/********-***********-*******-******-*****-*******-****-*******/*******.****?**********=********************************

* *** * **** ******* **** **** ***** * *** at ******** ** ** ***** *** ********* ** ********* ********* above ***'* ********* ***** ***

"**** ******** ********"

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

** ** *****, *** ********* ** ********* *** * ********, not ** *********.

"* *** * **** ******* **** **** ***** * *** at ******** ** ** ***** *** ********* ** ********* ********* above ***'* ********* ***** ***"

* ******* *** ** ****** *** ****** ***** ***** ******. They *** **** *** ***** ** *** **** *** ***** need ** **** ******** ********* ** ******. ***** *** **** "right ******".

*****, ** *** ** ******** **** ***** ** *** ******* or ********* ** ********* ** ********. *** ******** ******** ****** asked "*** **** ** * ****" ********* *******.

*******, *************'* ***** ********, * ** **** **** *** ****** ****** ****** *** salespeople.

"is ** **** ** ***** ******* *******"

:-)

*** ******* ** **** ******** *** *********** ****** *** *** market (**********) ******* ******** **** ******** *** * ************* *******.

* ** ***** ***** ** **** ** *** **** ******* era. *'** **** ***** **** ***** *** '**********', ********** **** had **** ******* ******* ***** ****** ** ******** ********.

* **** ******* **** **** ********* *** ***** ********, *** usually **** *** *** ******** ** *** ****** ******* ** the ********. *** *** ** *** ******* ** ********.

** ******** ** *** ******** *** **** *** ******** **** Avigilon ******* **** **** * **** **** *******, ********* **** support, ********* ****** ***** ******* *** *** ******* ******* ******** sales ****** ** **** **** ****.

***** **** ******* ** *******, ******* *** ***** ****** ** diluted, ** ****** ** ******** ** **** *** ******** **** Avigilon.

"*** *** ** *** ******* ** ********."

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

**** ** '*******' *** ******** ** ***** ******* ** ******** / ******* / ********* *** ********, ***** ** **** ******** hopes/hoped ** ** *** **** ** ***** *********** ******.

"** ******** ** *** ******** *** **** *** ******** **** Avigilon."

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

* ******* ***'** ** **** ** *** ******** *** **** your ******** **** ********, **** **** **** ****** **** ** so **** ***** ********.

** **** ** ******** *** ***** ***** ******** ********** / culture ******, **** **** ****** ****** ******* ****** **** ******* (like ****, *******, *****, ***.) ** ** ************ ****** *** competitive ******.

***** *** *** *********** ********, *** ** ** ***** ******* of ******** ** ****, * ***** ******* ******** ****** *** product ****** *********. ********** ***** ******** *** ******** ** **** this *** ** *** **** **** ** *** *** ********, with **** **** ********* *******. **** **** ** *** **** from * *** ********?

*'* **** **** ** ***** ********* **** **** ***** ********, and **** **** **** ****, *** ****** ********* **(**) ******* since ****, *** *** ** ***** *** ********* *** **** another ******, * ******* *** ** *** ******* ********** *** to ******* *** *******. ********** ** *** *** ** ***** our ************* ***** **, *** ******** ** *** ***** *** and *** ***** **** ********.

*** *** **** ******* ********** ** *** ***** **'*, "*** it - ***'** **** **." ****** ** ***** ***** ** recruit ***********.

********** ***** ******** *** ******** ** **** **** *** ** the **** **** ** *** *** ********, **** **** **** technical *******. **** **** ** *** **** **** * *** provider?

* *** *** **** **** *** *** *** **** ** the ***. ** *** ********* **** ***** *** ** ****?

****** ****** **** ***** ******, ** ******* **** **** **** parse ***** ** ***** *******, *** **** ******** **** *********.

***'* **** *** **** ** ** **** ** *** ***'* plant ** ** *** ******.

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

******, ** *** ***********, ** *** ****'* **** ** ***** that *** *** *** **** ** *** ***, **** ******* were *** ****** ** *** ****?

********** ***** ******** *** ******** ** **** **** *** ** the **** **** ** *** *** ********, **** **** **** technical *******. **** **** ** *** **** **** * *** provider?

*** ***** ** *****, * ***'* ***** *****.

******** *** ************* *** ****** ******** ** * ***** ** the *** ******** ** ***** *****. **** ***** **** **** ago ***** **** ********. **** *** ***** ** *****. ** x * **** ******* ** *** ***** ***.... * **** Hardware **********.

* **** ***** ** **** *** **** **** ******* ****** and ******'* ****** ***. (**** **** **** ****** - ******** to ***** ******** ******* ** *******) ******* ***** *-* * to *, ***'* **** ***** *****.

** ***** **, *** *** *** **** *** ***** ********* analyst ***** *****, *** **** *** ***** *** **** ******** wants. ******* - **** ********, ****** *** ** *********** ** grow **** ********, *** *** **** ** *** ***, *** yes, *** ** *** **** *** *** ***.

*** **** **** ****** ** ******* ** ****** *******?

* ** ***% *** ******** ****** ** ****** ** *** licenses ***/** ********* **** ****** *********..

******** ******* *** **** *** ** ***** *** ** ******* us *** *** ******** ******** *****. **** ** **** *** other ************ * **** ****** **** ** **** ** *****. If ******** ***** ************* ***** ***** **** ******** ** *** to ******* *********.

**** ***** ****** ***** ** **** ** *** **** ** this ***** ** ******* *** **** *** **** ** **** with ***** ************ **** *** *** ** **** *** ***** and ***'* **** *** ******** ** ******* ** ******* *** back **** **** *** **** *****.

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

***** *** ****** *****. ***'* *** ***** ***** - ***** in *** *** *** ******** ******** ************?

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

********'* *** ** *** '**** ** *** ***', *********** *** **** ******** * *** ************* ***** ** *** US*** ***** ********.

*** *** ******* ****, *******, *** ***** ** ******* ********* that ******** ****** ****** ** ** ****?

* ***** * ******, ** **** ** ** **** *** read *** *** ******* ***-****** ******** ***** ***** *********.

****, ******** *** ******* *** *** *** ******** *** ** CCTV ** ****, *** *** ****** *** *******.

**, * ** *** ****** *** ******* ****** ** **** any *****. * ** ****** ***** *** *** ********* **** good ******** **** *** *** ****** *** ****** **** **** to ***** ** **** *** ******** *******. ******** ** *** clearly ****** **** **** ********* (** **** ** **** *** repair / ***** *** ******** ******).

***** ******* **** ******** ** ******* ****. **** ** * missing?

*****://*******.*****.***/****/********-***********-*******-******-*****-*********.****

**** ** * ****** **** **********'* ***** *******, **** *** '******* ****' ****.

***, ****'* *** ***** ******* ****** ****. ** *** **** just ***** *** ********, ** ** ******** ******* **** *** Group. ** *** **** ***** *****'********, ** ***** ** ** * *********/********* ******.

*****, ****** *** ***** ***** **** **** ** ***** ***** content ******* *** ****** ** **** *** *********** ******* **** news ********** **** ********* *** *********.

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

*** ******* ** **** ******* ** ********* ** *** ****** States ** ******* *** ******* *** ****** ** ***** ** do ** ** ********** **** ********** *.*. ***.

*** ******** ********* ** *** ******* ** **** ******* *** solely ***'* ******** *** ** *** ******* *** ******** ** anyone ** ***. *** ****** *** ***** *** ******* ********* by *** ** * ******** ********** ** **** * ********** investment ** ****** * ********** ********, *** **** ** ** expression ** *** *******. ***’* ******** *** ***** **** *********** he ********* ********, *** ***'* ****** ***** ******* *** ************ or ********, *** ** ****** *** ** ****** **** ** such. *** ** *** ***** *** ********** ** ****** ** correct *** *********** ******** ** **** *******. ***’* ********** *** opinions *** ******* ** ****** ******* ******. ** **** ** Hal’s ************ **** **** *** ********* ** ******* ** *** specific ******** ** *********.

**** *********** ** *** ********** ** ****** *******. *** *****'* guarantees *** ******** ******* ** ******. *** ****** ** ***** of *** **** **** ** **** ** ********* *** ******** or ********** ********* ** **** ******* ** ** *** ****. Strategies ** *********** ********* *** ********* ** ***** ** *****. Investors *** *** **** **** **** ********. *********** ** ********** mentioned ** **** ******* ** ** *** **** *** *** be ******** *** ***. **** ******** **** *** **** **** account **** ********** ********** **********, ********* ********* ** ***** *** is *** ******** ** *************** *********** *** ***. *** **** make ** *********** ******** ********* *********** ** ********** ********* ** this ******* ** ** *** ****. ****** ****** ** *********** on **** ******* ** ** *** ****, *** ****** ******** whether ** ** ******** *** **** ********** ************* *** ******** consider ******* ****** **** **** *** ********* ** ********** *******.

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

Competing Against ADT on Jul 20, 2017
ADT is one of the biggest players in the security industry, with ~$4 billion revenue. In 2017, they were acquired / merged with Protection...
Hikvision USA Head of Cybersecurity Exits on Jul 18, 2017
Hikvision USA's Head of Cybersecurity has exited the company. In this note, we review the move, share Hikvision's feedback and examine the...
Hikvision Distributor Says Hikvision "Top Rated Yet Most Hated" on Jul 12, 2017
The CEO of 2M Solutions, a distributor selling Hikvision cameras under their own as well as Hikvision's brand has publicly declared Hikvision to be...
Best Manufacturer Perks on Jul 07, 2017
A decade ago, the best manufacturer perk was likely a trip on the Pelco jet: But the Pelco jet is long, long, long gone. What types of perks...
Hikvision USA Hires VP of Business Development on Jul 05, 2017
Hikvision USA is expanding again, this time in its drive to move up market to larger integrators and end users. In this note, we analyze...
IndigoVision Raids Avigilon Sales Team on Jul 05, 2017
If you can't beat 'em, hire their employees? This could be described as IndigoVision's most recent strategy to increase market share in North...
Hikvision Hits Record 'ALL PRODUCTS' Sales Run on Jun 30, 2017
Hikvision has a new record. This one is for the most times a video surveillance manufacturer has put all their products on sale in 2 months....
Hikvision Stock Surges - Doubling In Past Year on Jun 29, 2017
Hikvision's stock, on the China Shenzhen stock exchange, has more than doubled in the past year, vaulting the company's worth to an astounding (for...
Top 5 Improvements For Manufacturer Sales People on Jun 28, 2017
Manufacturer sales people are very important to integrators, but it takes more than just punching a clock to be successful and truly valuable to...
Manufacturer Sales People Are Very Important - Statistics on Jun 26, 2017
IPVM's new integrator statistics show what sales people say regularly: Sales people are very important. From 150 integrator...

Most Recent Industry Reports

Security Robots Are Just Entertainment on Jul 21, 2017
Great entertainment, no real security value.  That is the happy (or sad) state of security robots in 2017. Knightscope robot's drowning, the...
Wireless Burglar Alarm Sensors Guide on Jul 21, 2017
Wireless sensors for burglar alarm sensors are an increasingly common option for the historical labor intensive wired alarm systems. However,...
Competing Against ADT on Jul 20, 2017
ADT is one of the biggest players in the security industry, with ~$4 billion revenue. In 2017, they were acquired / merged with Protection...
Hikvision Launching Deep Learning Recorders on Jul 20, 2017
Hikvision has become a common choice for super low cost NVRs. Now, Hikvision is aiming to move up market, with deep learning NVRs that claim far...
PR Campaign Exploiting Manufacturer Cybersecurity on Jul 20, 2017
Manufacturers increasingly have a bulls-eye on their back. As cyber security solutions providers grow, they realize a great way to get publicity...
Axis Door Station Tested (A8105-E) on Jul 19, 2017
Axis continues their push into niche markets, especially audio, with network speakers, an IP horn, and video door stations. We bought and tested...
Manufacturer Favorability Guide on Jul 19, 2017
This 120 page PDF guide may be downloaded inside by all IPVM members. It covers our 20 manufacturer favorability rankings and 20 manufacturer...
$8 Billion Utility Georgia Power Enters Surveillance Business Offering Avigilon And Genetec on Jul 19, 2017
Utilities are typically considered major customers of surveillance integrators but one utility, Georgia Power, with $8+ billion in annual revenue...
Knightscope Laughs off Robot Drowning on Jul 18, 2017
A day after a Knightscope robot drowned, Knightscope has issued an 'official statement' making fun of the issue: The implied message is that...
Microsoft Video AI Cloud Services Examined on Jul 18, 2017
Microsoft has released one of the most amazing video analytics marketing videos ever. In it, they detect oil spills, track individual people giving...

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