******** ******** ****** **** ******* *** 16% **** **** ****, ******** ** 26% *** *** ***** ******* (** ****) *** *** **** **% ** the ********* ** **** ****. **** Axis, ******** ******* ******* ** ***** boosted ************* ** ******** **** ************. Avigilon's ******* ****** ** ****** ** the **-**% ***** ** **** ******** some *** ******* **** ********* ************** *** *** ** **** **** / ********* ** **** ***.
***** *** ********* ******** ****** **% compared ** ***** *&* ******** ******** of **** **%. **** ** ********** with ********'* ******* ********, *** **** growth ***** ********** ** ****, *** productive / ********** ***** ***** ********* are ** ************. ******* *********, ******** suffered *** ***** *** ******* ******* this ****** ******* **** ****** *** ****** ******* ********.
******** *************
**** ****** **** *** ******** **, even **** ******** **** ********, ********'* profitability ********* ** ******. *** ****** was ******** **** **%, **** ***** 'adjusted ********' **** **** ** *%
*******
*** ******* ******* ****** *** ******** is ******, **** **** ** **% and *** ****** ******* ** *%. That ** *** ** ******** ********, so **** ****** ** ****** ** be **** ** ***** ** ** here.
Enterprise ******
********** ******** ($***,***+) **** **** ******. This *******, **** *********** **% ** all *****, ******** ** * **** ago, ***** **** *********** **** **%. This ***** ********'* ********** ******** *** grown ************ (********* ** *** **-***% growth *****).
SMB ****
*******, *** *** **** ****. ******* the ***** ** ********** ********, ******* growth ********* ** *******. *** ***** problem ** **** *** *** ****** (everything ***** $***,***) ** ****** ******* at ***, *** ******* ****.
Impact ********** ** ***
** *** **** ****, ** ******* Avigilon *** ******** ** ** *********** and ********* ****, *******, *********, ***., for ***** ***** ********. ** *** negative ****, **** **** ********** **** to, ******* *** *** **** ** being *********** / ******* ** *** growing ******* ********* (**** ******* ********* but **** ***** **** ******* ** in ********'* **** ********* ****** (***** America).
***** ********, ****, ***. **** ****** quality '*********' **** ********* *** *****, the ******* ***** ********** *** *** 'good ******' ******* ** ***** ********* will **** ** **** **** *** any ** *** ******* ********* ** compete, ********** ** **, ** ***.
******* ** ****, *** ********** ****** will ******** ** **** *******, ** large ********* **** ********, ****, *******, Panasonic / **, ***** / **** focus **** ** ***** ***** ******* to ******* *****. ******, ******* *******'* $** *******************'* ******** ********** *************, *** ***** ******** ** ************ there.
1000 *********
******** ** *** **** *** ** 1000 *********. ******** *****, **** **** have ********* "****-**** ********* ********* ** all *********** **** *** ** ** December **, **** ** *** ** at ********* **, ****." **** ** an ****** ******** **** ** **%+.
Expectations ****
******** ** ******** / ******* ************, which ******* ****** *** **** ****, these ******* *** ******** ****, ** least **** ** ***** ** ***** revenue *** ******** *** *****, ***** Avigilon ***** ****. *******, *** *** long-term ****** ** *** *******, * declining ****** **** *** *** ****** increases ** ******* *** ********** * concern.
Outlook *** ********
*** ***** ******** ** ***** **** two ****** ********: (*) *** ********** of *** ** ****** ****** *** (2) *** **** ** *** *******. The *** ******** *** ******* ******** pressure ** ********, **** ******** ** solution ********, ******* ***** ******* ** not.
*** **** ** **% ******** ******** growth *** **** *** ********. **** quarters **** **% ******** ******** ****** would ** ********* ****. ***** ******* 16% ** * **** ****** ** their ********* ****-**** *******.
***, **** *** '************' **********, *** Schmode-free ******** *** ******* ************ *** freedom ** ** **** ** ***** to ***** * *********** **** **** business.
CEO ********
*** ******* ********** ******** ***'* ** the ********* ***** ************ ** ******. His ******** *** **** **** *** still ******* ****** **** ******** ******* and **** *** *** ** ***** numbers *** ******** **. **** ** which *** ****. ** *** ***** hand, **** **** *** ****** *** fact **** ******** ** ******* ********** to ******** *******.
**** ********** ** ********* ********, ********'* CEO ********** *** **** ***********, ****-****** environment ** ******** *** **** ** was * "***** *********** *** ** and ******."
**** ***** ***** *** ******* ****** of *** ** *** ********* (*.*., Tyco / *****, ********* / **, Canon / **** / *********), ********'* CEO ********** **** ******** ******** ** being ********* *** ** ***, *** simply **** ******** (** *** ** the **** **** ***** / **** / *********).
*********:******** ** **** ********* ******, ******** ** ******** **** ********** [link ** ****** *********]
Comments (33)
Brian Rhodes
I am trying to be sensitive to all those involved, but how much of a risk are layoffs among the rank-file employees?
Is that just being too negative? With the tepid degree of growth, is a headcount of nearly 1000 employees reasonable, especially when the original plan was sharp growth?
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Undisclosed Manufacturer #3
Good job Avigilon on the self-inflicted wound! It's only going to get worse...
Patent lawsuits and the threat of being sued is driving Video Surveillance business to the Chinese who are immune to such lawsuits. If you don't believe the patent threat to end-users, integrators, and manufacturers is real then your head is in the sand. Axis even acknowledged it as a factor in selling to Canon. (Min 3:00)
If Avigilon opens it's patents to the industry it would improve conditions for everyone...
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John Honovich
Stock down 11.89% to $12.74 in the first day after results were released. So despite beating analyst's expectations, the 'market' is not overall happy with the results.
We believe this reflects the broader market's increase acceptance that Avigilon is at best an above average company in an increasing competitive, lower growth market, not the disruptive rocketship believed at the beginning of last year.
AVO's market cap is now ~$570 million CAD which is slightly over 2x last year's revenue. 2x is typical for solid video surveillance manufacturers so it surely is dramatically worse than last year but not irrational comparatively. Of course, Axis was acquired for ~4x of their revenue, so Avigilon can still reasonably hold out hope for something like that.
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Undisclosed Manufacturer #4
They disagree entirely:
http://ir.avigilon.com/Investor-Relations/Press-Releases/Press-Releases-Details/2015/Avigilon-Corporation-Reports-Record-Third-Quarter-2015-Results/default.aspx?hootPostID=aa1758a5904bdce9063e269f07b462f2
I got a call earlier this week about a job at Avigilon so it seems the reduction in headcount mentioned above isn't happening right now
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Undisclosed Manufacturer #4
"is at best an above average company"
:-)
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Sam Eskew
I have learned that your headlines are quite dramatic, and usually over the top compared to the actual content of the articles. The sky is not falling at Avigilon.
We continue to win projects and grow our business with Avigilon because they have a very good product, excellent tech support, excellent inside sales support and the hardest working regional sales person we have ever seen.
Until that mixture of quality, service and sales effort is diluted, we expect to continue to grow our business with Avigilon.
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Andrew Thomas
These are all interesting comments, and as an early adopter of Avigilon in 2009, I would embrace Avigilon making the product widely available. Especially since Avigilon has invested to make this one of the only MADE is the USA products, with 24x7 Free technical support. What more do you want from a VMS provider?
I'm sure fans of other platforms will find niche features, and that cuts both ways, but having supported IT(IP) systems since 1985, and all IP based VMS platforms are just another server, I believe ACC is the easiest enterprise VMS to install and support. Regardless of how big or small our installations might be, the majority of our sales net and RMR comes from services.
The old Alka Seltzer commercial in the early 70's, "Try it - You'll like it." should be their motto to recruit integrators.
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Andrew Thomas
Are you putting Axis, Genetec, and Exacq as example companies that Avigilon should strive to be like?
I guess I missed, or need to go back and read all the glowing non-biased articles about these companies.
True, Avigilon did disrupt and set the standard for HD CCTV in 2009, and the market has matured.
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Hal Bennick
11/06/15 03:56pm
Yahoo Finance says Avigilon is kicking butt. What am I missing?
https://finance.yahoo.com/news/avigilon-corporation-reports-record-third-210500348.html
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