Avigilon Growth Down, Expenses Up, Stock Slammed (Q1 2015)

Author: John Honovich, Published on May 04, 2015

Avigilon growth rate continues to slow down sharply yet the company's aggressive spending continues.

Because of that, the stock market is punishing Avigilon yet.

In this note, we break down Avigilon's financial results, look at the causes of Avigilon's challenges and the future for the former high flier.

******** ****** **** ********* ** **** **** ******* *** *** company's ********** ******** *********.

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** **** ****, ** ***** **** ********'* ********* *******, **** at *** ****** ** ********'* ********** *** *** ****** *** the ****** **** *****.

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Growth **** ****

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

***, *** *** **** ********* ** **** *******, ******* ****** was **%. ******* ***********, **** ******* / ***** ******** ****** was ****** ** *** **% *****, ** ******** ********* **** positive ******* ******** ******* *** ** *********** ************ **** ****** Video ****** ********* (******** **** ** *** '**********' *** **** did *** ******* ** **** ***** $* ** $* *******, etc., ** ******** $*.* ************** *** ******* ** ****).

******* ********* *** *** ***** *****, ********'* ******* ****** **** in ***** *** ************* ********(******** $**.*, ****** ******** $**.*, ********* ******** $**.*).

Comparative ******** ******

*** '****' **** *** ******** ** **** **** ** *** market (********* *********** ******* ******) *** ********** ** ****, **** notably ******** ** ****'**** *% ******** ***** ********** *** *** **** *******.

** *** ***** ****, ********'* **** ****** *********** **** **** operating ** *** ***** ****** ***** *** *** **** *** years. * **** ***, **** ******** *** ***** ** **%, Axis *** ****% ******. * **** *** * **** ***, **** ******** ******* revenue, **** *** ****% ******, ***. ******* ** ****, ********'* ****** ********* / ******* is ********* *******.

*** *** *** ****** **** ** ******* *** "$*** ** camera ******". ******* ** ** ***-**** ** ** *** ***** really ***-****** ******, **** ** ***** *** *** ****** ** ****** ***** surveillance ***** *** *** ** ** ********* ***** ** ******* companies (**** ***** *** *********) *** ***** ****. **** ******* brands *** *** ************* ** **** ** ***. **** **** and ********, ** **********, **** ** *** ******* ** ******* here.

Avigilon ********* ******** *** **********

******** *** ************* **** ** *** ******** *** ** ********** deals; ***** *************** *** ** *** ***.

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******* **** ********'* *** **** ***** ** *** ********** **** that **** *** '*** ******* ***** ********' *** ******** ** rationale *** ***** ****** **** ********* ** ******* ** ******* and ****** **** *** ******* *********.

Expenses **

********* ******** **** ** *******, ** **%, ************* ****** **** revenue. *******, ******** ***** **** **** ** ****** ** ** and *** *** *** ***** *********.

** **********, ***** *** ********* ******** **** ** **% *** G&A ******** **** ** **%. *&* ******** ****** ********** ******** but *** **** ** **%. *&* *********** ** *** **% of *******, ***** ** ** ************* **** * *** ***** ago **** ******** ***** **** *% ** ******* ** *&*.

******** ******** **** *** ********* ********** **** **** ****** ****** and *********.

Stock *******

********'* ***** ** **** ~**% ** *** ***** ** ******* this *******. ******** *** ** $**.** ****** *** ******* **** released, *** *** **** ** $**.**.

********'* ***** ***** *** **** ********* ********, **** ******** ***** drops ***** ******* ~$** ** ***** ****, ********* ***** ****** '***********' ************** ******* ***** ** ****.

Avigilon ***********?

********'* **** ******* ** *** **** ******* *** * *** position **** *** ****** *** **** ** **** **** **** results, **** ****** **** ** ******** ****** ******. ****** ***, though, ******* ** *** **** *** *****, *** ****** ******* is ******* ******* ****.

**********, ******** ******* ** ******% ** *** ****** *** ******, *** **** **** **** *** * **** ******* ** the ******, ** ******* ****** *** ****. ***, **** **** shifted ** *** ******** **** **** *** ******* **** ****** than ******** *******. *** *****, ******, ** **** *** *** between ********'* ****** **** *** *** ******** ******* *** ******** down *************.

** *** ******** ****, ******** ** ******* ***** **** **** their *********, ***** *** *** ************* ** ***** '**********' *** 'fantastic' ****** **** ** ******* ****** **. *** ********* ** just *** ***** ********* *** ** ****. ** ******* **** in *** ****** *** ******, ********* *** ***** ******** *** a $*** ******** ****** ** * $*** ****** ** ****** is * ***** *** **** ** *** ***** *** ******, where *** *** ******* ****** ** ***.

Background ******

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Comments (5)

*******, **********, *********, *** ***** ******* ******* * *****-******* ******** to ********** ***enforcement ** ********’* ***-**-*** ********* and Avigilon’s competitive position. - ******** ** **** **********

******* ** ** *'* *****, *** * ******* ******** *** be *** **** ****** ******** ***** ******** ***-**-*** *********.

**** ***. *'** ***** **** ****** **** ******** ***-**-*** *********. We'll *** **** **** ***** ********* **** **** **** ******* of.

****,

** ******* **** *** *** ***** *** ***** ***** *** IPO, *** ******** ********* **** ****** ****** ***** "* **** of $**** ** ****** ** ****", ******** **** ******** ****** to ***** **** ****** ** "* ***-**** ** $**** ** sales ** *** *** ** ****", ******* ** **** ***** generate ******** ** $**** ** ****, ******* *** ****** ** $500M ** ******* **** * ******** ***** **** ****** ** reached ** ** ****.

**** ** **** ******* ** **** ******? *** *** ********* analysts **** *** ****** ** ** ****?

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

***, **** *** ******* *** ********** ****** ***** ******. ** first, * ******* ***** ****** ******* **** ** ***** (*.*., us) *** ** ** ********** * ****** ** ***** ****.

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

"** **** ** *** ********** *** ********** ******** ** ********* our ***** ****, ********* ********* *** ***** *********, *** ********** research *** *********** **********, ** ** ****** *******our **** ** $*** ******* ** ******* ** ****."

*******, ** *** ********* ** ****, ** ***** ** **** report,**** *****:

"** **** ** **** ******** *** ********** ******** ** ********* our ***** ****, ********* ********* *** ***** *********, *** ********** research *** *********** **********, ** ** ****** *******our **** ** $*** ******* ** ***-**** ******* ** *** *** ** ****"

** *** ***** ****, **** ** * ******* **** * track ****** ****** ***** *** ************, ** ********** ********, * ** *** **** **** *** high **** *** *****.

******* ** ***** $*** ******* **** ****, **** *** *********** saying **** **** ** $*** ******* ** ** ** **** year (****).

** ** ** ****, **** *** **** *** ** $** million. **** **** ** **** ** **% **** **** **** in **** *** **** ** ***. **** ** ********** ** the ******** ******* ******.

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