Avigilon Financials and 2014 Future Plans

By: John Honovich, Published on Mar 05, 2014

Avigilon's 2013 financial report and investor conference call gave insights into their current performance and future plans including timetable for VideoIQ integration, areas of expansion and why Avigilon's CEO believe Axis sells 'just widgets'.

In this note, we dig into the details.

2013 ********** ********

**************** **** ****$*** ******* *******, ** 78% **** *** $*** million ** ****. *** Q4 ****, ******* *** up **%, * ****** pace **** ******* ******* ********, *** ***** ************ higher **** *** ******** average (*******' ******* ****).

[*********:******** ** **** ********* ********'* **** ***** recording.]

*** ****** *** ** significantly ** **% ** 2013, ******** ** **** profitability ****** ** ********* market *******, ********** * historical ******* / ********* of ********.

***** ******* **** **** up ** **% ** Q4 **** ****** *** company ***** **** ******** fluctuations ****** ***** ****.

******* ********* **** ****** even ****** *** *****:

Employee *********

******** ***** *** ********* in ****:

******** ********* **** ****** would ** ******* ** 2014, ********* * '***** doubling'. **** ** *** same **** ** ****, that ***** ***** ***** 800 ***** ********* ** year ***.

**** **** ***** * focus ** **** ******* and ***** ******* *** sales ********* ** ****.

************, **** ******** *********** people *** *******, ********* the ******* **********, ******* / ******* *** ******.

Sales / ********* *** *&*********

***** ******* ******* ***** revenue ******, ********* ******** rose **** ********.

** ********, ********* ******** roughly ******* ** ****, so **** ** * notable ************ ***********.

***** *&* ******** ***** revenue ******, ******** ** sales *** *********, *&* is ************ *****:

******** ** ****, ***** R&D ******** *** **** slightly **** **** ***** and *********. ** *** other ****, ***** ********'* results, ******* **** ****** increase ***** ************ ** expenses.

**** *****, ***** $** million ** *&* ******** is ********** *** ********** **** ***** ******* level *** *** ***** of ******** (**** ******* to ********* ** ********* and ****** *******).

No ***** ******** / *** **** ********* *** ********

******** *** ******** * question ***** *** ********* threats ** ******* *********, emphasizing **** **** *** '*** feeling *** ***** ******** at **** ****' *** that **** ******** ******* with * *** ** them *** ***** *** cost *******.

Future ** *******

******** **** **** ** will **** * ** 9 ****** *** ******* to ** ********** **** their *** *** ***** 2015 *** ***** ********* to ** ********** **** Avigilon *******. ***** ****, especially *** **** *** VMS ***********, **** **** limit *** ***** ** using ******* **** ******** until ** ** *********. On *** ***** ****, once ******** ********** ******* analytics **** ***** *******, they **** **** * very ********** ***** ****** offering. ** **** ** interesting ** *** **** major *********** **** **** do ** *** ******** to ****** ****.

RedCloud ***** ****** *****

******** ** ****** *****, available, *** *** ********** into *** ***.

** *** * ****** since*** ***********, ******* *** **** $795,000 *** *** *** net **** *** ****** $2 *******. **** ********'* sales ******* ******* ** this ****, **** **** certainly ****** *************. 

More ************?

******** ********* ***** ************ in **** **** ******** but **** **** ***** continue ** **** *** intellectual ******** ** ****** of ********** ** ********** their ********, ****** ************* developed ****** ******* ** analytics ********* ** *** areas ** *********.

Axis '**** *******'

**** ***** ***** **** increased ** **** *********, Avigilon ***'* ********** *** same ****** ***** '*** ****' ************- **** **** ** more ** * ********* and '**** *******' ******** to ***** '*********.'

** *** ***** ****, Axis ***** ***** ** cameras, ********** ***** ****** end * *** * series, *** *** **** sophisticated '*******' **** ******** cameras, * *** ****** for ********** ********* **** Avigilon ******* *** *********.

Growth ********

******* ********** ***'****** *****' **** '**********', ********'* ****** ******** emphasized *** ********* ** bringing ******** ******** *****, Red ***** *** *** VideoIQ ********* **** ***:

"**** ** ******** *** plans *** ***** ************ [VideoIQ / ********], ** discussed *****, *** ****** will ******* ***-***** **** *** ability ** ******* *** control **** ***** ************ and ****** ******* **** one ******, ***** ******** *** system ** *********** ******** alert ********** ******* ***** analytics. ** ******* **** there are ** *********** ******* in *** ****** **** can ** *** ***** functions ************."

***** **** *********** *** integrate *** ***** ********** from **** ** ***** areas, ***** *** ***, if ***, *** **** these *** ** ***** at * **** ******* level. ** **** ***, if ******** *** ************ bring **** ********, ** will ******* * ****** differentiator *** *** *******.

** *** ***** ****, one ** *** ******* this ** ** **** is **** ** ** so **** ** ** from ** *********** ***********, especially *** ************* ******* enterprise ********* **** *****, complex ************. 

** ******** *** ************ add ***+ *********, ********* 2 *** ******* **********, and ******* *** ******** on *** *****, ** will ** **** ********** but ***** ******* **** ** ****** on *** ****. 

Comments (12)

Good summary, John.

Your conclusion is to the point, but given they've stated they want to become the market leader, that does involve some risk. Another key piece is their upcoming move to an SAP ERP system which is also a big undertaking.

As for them painting Axis as a widget maker, I guess you could say that all is fair in love and war.

One thing I think they understand very well though is that in order to become a market leader, you don't have to please all the people all of the time, just most of the people most of the time.

I don't think the Axis criticism was bad. I just wonder when Axis is going to 'strike back', if ever....

Maybe Axis figured the analog manufacturers let them each their lunch so they are going to pay it forward to Avigilon...

The small amount on R&D is puzzeling to me........ with that much coin coming in you would think they would be pumping more into that department to fast track the integration of all the new pieces of Tech they have bought into the product line ASAP. thus over running the market and puting both small and large competitors and the like on thier heels and possibling making themselves the most dominate (non china) on the Market.... Time will tell but Google/Microsoft did not become household names by spending pennies in R&D.

18 months to fully integrate purchased technology, as they are proposing to do for VideoIQ, is actually quite good.

Microsoft took 3 years to get a working Windows compatible version of software - PowerPoint- out of their very first acquisition.

I won't even get into Google with their one acquisition per week pace. That must be a nightmare to manage.

You'd be surprised how many companies never get around to correctly integrating acquisitions, even at the operational level.

Alain, give me a break. Avigilon is not Microsoft. VideoIQ is not Powerpoint.

6 to 9 months to integrate analytics into their VMS is definitely surprising and uncommonly long. I'll give them the benefit of doubt and assume they are just being conservative.

"Alain, give me a break. Avigilon is not Microsoft. VideoIQ is not Powerpoint."

I didn't bring it up. I was refering to Seth's comparisons.

I'd also venture to say VideoIQ's software is much more complex than Powerpoint will ever be. I doubt anyone would qualify Powerpoint as smart or able to learn and adapt. More the opposite.

Alain, that comment implies you do not understand the complexity it takes to integrate video analytics into a VMS. You are radically overestimating it.

I guess that depends on how they intend to integrate it. Regardless, it's not as if the technology isn't usable or sellable as is.

Thank you Avigilon investor.

Integrating video analytics into a VMS is very important for sales of that video analytic because people expect to be able to monitor / review analytic alerts inside their VMSes. This is not something unique to Avigilon but impacts any analytic / VMS combo.

I'm not saying it's not. Simply that if they need to take the right amount of time to make sure it's integrated the way they want it to be and that it actually works the way it should, they can still sell the VideoIQ appliances which already work with ACC.

It's called being pragmatic.

Yes Alain, but they are perishable goods. The market won't wait forever for the integration to be done. At the most, Avigilon has 12 months from the close of the acquisition to finish and market the integration before the iron cools.

If you look at companies like Tyco and UTC who have made several acquisitions over the years, it's easy to see the successes that can be had when they integrate the IP into their solution versus the failure that occurs when the acquired IP is forced to remain in a silo.

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

Amazon Ring Public Subsidy Program Aims To Dominate Residential Security on May 20, 2019
Amazon dominates market after market. Quitely, but increasingly, they are doing so in residential security, through a combination of significant...
Facial Recognition Systems Fail Simple Liveness Detection Test on May 17, 2019
Facial recognition is being widely promoted as a solution to physical access control but we were able to simply spoof 3 systems because they had no...
Inside Look Into Scam Market Research on May 17, 2019
Scam market research has exploded over the last few years becoming the most commonly cited 'statistics' for most industries, despite there clearly...
Maglock Selection Guide on May 16, 2019
One of the most misunderstood yet valuable pieces of electrified hardware is the maglock. Few locks are stronger, but myths and confusion surround...
Milestone XProtect 2019 R1 Tested on May 15, 2019
For the past few years, Milestone has released quarterly software updates XProtect VMS platform. What is new and how much impact do the updates...
Access Control Request to Exit (RTE) Tutorial on May 13, 2019
For access controlled doors, especially those with maglocks, 'Request to Exit', or 'RTE' devices are required to override electrified locks to...
Bluecherry Open Sources Entire VMS on May 13, 2019
Bluecherry announced they have "released the entire Bluecherry software application open source with a GPL license". We spoke to Bluecherry's...
Vivotek Talks About Taiwan, China, Bans, AI And Business Development on May 10, 2019
Vivotek, Taiwan's biggest manufacturer by revenue, did not have a booth at Taiwan's Secutech 2019 (which we are covering). However,...
Mining Company Security Manager Interview on May 10, 2019
First Quantum Minerals Limited (FQML) is a global enterprise with offices on 4 continents and operations in 7 countries with exploratory operations...
10 Facial Recognition Providers Review (Secutech) on May 09, 2019
Adding to our 19 Facial Recognition Providers Profiled report from ISC West, IPVM focused on facial recognition technology for our Day 2 coverage...

Most Recent Industry Reports

Amazon Ring Public Subsidy Program Aims To Dominate Residential Security on May 20, 2019
Amazon dominates market after market. Quitely, but increasingly, they are doing so in residential security, through a combination of significant...
LifeSafety Power NetLink Vulnerabilities And Problematic Response on May 20, 2019
'Power supplies' are not devices that many think about when considering vulnerabilities but as more and more devices go 'online', the risks for...
Facial Recognition Systems Fail Simple Liveness Detection Test on May 17, 2019
Facial recognition is being widely promoted as a solution to physical access control but we were able to simply spoof 3 systems because they had no...
Inside Look Into Scam Market Research on May 17, 2019
Scam market research has exploded over the last few years becoming the most commonly cited 'statistics' for most industries, despite there clearly...
Maglock Selection Guide on May 16, 2019
One of the most misunderstood yet valuable pieces of electrified hardware is the maglock. Few locks are stronger, but myths and confusion surround...
Panasonic 32MP Multi Imager Camera Tested (WV-X8570N) on May 16, 2019
Panasonic has released their first multi imager models including the 32MP (4x4K) WV-X8570N, claiming "Extreme image quality for evidence capturing...
Trump Signs 'Huawei Ban' - Executive Order Targeting Foreign Adversary Technology on May 16, 2019
US President Donald Trump has signed an executive order targeting technology provided by 'foreign adversaries', in what is widely being called a...
Bank Security Manager Interview on May 15, 2019
Bank security contends with many significant threats - from fraudsters to robbers and more. In this interview, IPVM spoke with bank security...
Milestone XProtect 2019 R1 Tested on May 15, 2019
For the past few years, Milestone has released quarterly software updates XProtect VMS platform. What is new and how much impact do the updates...
San Francisco Face Recognition Ban And Surveillance Regulation Details Examined on May 14, 2019
San Francisco passed the legislation 8-1 today. While the face recognition 'ban' has already received significant attention over the past few...

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