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

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

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

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

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; ***** *************** *** ** *** ***.

** **********, ********** ***** *** ******* *** **% ** ***** revenue, * ******* **** ********* ** ****. *******, **** ***** that *** / ***-********** ****** ** ******* **** ******, ****** in *** *** *****.

** ******* **** **** ******* ** **** ********* ** ********'* continued ****** *********** ******** ** *** ****** ***, ******* ****** but **** ******** ** ********** **** *** ********* ****** ** much ***** ****, '**** ******' ************ ******* ** *** *** end ** *** ******.

******* **** ********'* *** **** ***** ** *** ********** **** 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 ******

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

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

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

Arlo, Bigger Than Avigilon, More Valuable Than Axis on Feb 08, 2018
Arlo, the wireless IP camera offering that Netgear bought ~5 years ago for a few tens of millions is now doing more revenue than Avigilon and...
Axis Breaks 1 Billion USD Annual Revenue on Jan 26, 2018
Axis Communications annual revenue has exceeded $1 billion for the first time in 2017. In this note, we examine Axis financial performance over...
Imperial Capital Security Investor Conference Review on Dec 08, 2017
Investment bank Imperial Capital holds an annual Security Investor Conference where 60+ companies present, including this year: IPVM bought a...
Sentry360 Bankruptcy on Nov 30, 2017
Sentry360, a US-based video surveillance manufacturer, most well-known for its panoramic cameras, has filed for Chapter 7 bankruptcy. In this...
Axis Q3 2017 Financial Results on Oct 23, 2017
A big issue for Axis this past quarter was their product shortage. Despite that, new Q3 numbers for Axis show solid financial results. In this...
ADI To Be Spun Out of Honeywell on Oct 10, 2017
Honeywell has announced it will spin off ADI and its Home products division into a new public company. This is a big move for the mega-security...
Knightscope Financials Reveal Huge Increase In Expenses And Incorrect Accounting on Oct 02, 2017
Knightscope's H1 2017 financials are out, in the midst of their ongoing crowd funding approaching $17 million. In this note, we analyze...
FLIR Security Business Struggling on Aug 02, 2017
FLIR's security division is an ambitious mix of FLIR's core thermal business plus multiple acquisitions, including of retail / consumer offering...
Anixter - Falling Video Prices on Jul 26, 2017
Falling video prices are such a concern that it has become a notable topic for Anixter's financial results and Anixter's executives. In this...
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...

Most Recent Industry Reports

Directory of 30+ LPR / ANPR Providers on Feb 21, 2018
License Plate Recognition / Automatic Number Plate Recognition are a type of video analytics software that can identify and match license / number...
New Whole Foods Installs Hackable Access Control on Feb 21, 2018
Whole Foods has built a reputation for high quality. And their 2017 Amazon acquisition has increased that, plus added deep pockets for buying...
Remote Network Access for Video Surveillance Guide on Feb 21, 2018
Remotely accessing surveillance systems is key in 2018, with more and more users relying on mobile apps as their main way of operating the system....
Visio For Video Surveillance Design on Feb 20, 2018
Many integrators have standardized on AutoCAD for camera layouts but new users may be overwhelmed by its learning curve. Microsoft's Visio...
Health Care Insurance Integrator Benefits Statistics on Feb 20, 2018
How common and how much healthcare coverage is typically provided by security companies? 150+ integrators explained how their companies provide the...
Hikvision Deletes Genetec Support on Feb 20, 2018
There will be no peace between Hikvision and Genetec. A year after Genetec expelled Hikvision (and Huawei, citing Chinese government control...
Change Orders - Sometimes Necessary, Sometimes Unethical on Feb 19, 2018
Change orders are a common element in project sales. Sometimes they are a necessity and appropriate ways to deal with arising issues, but sometimes...
Bosch Merges Video, Intrusion and Access Businesses on Feb 19, 2018
Bosch is merging their "video systems, intrusion detection, as well as its access control and management software business units to form a single...
Why 3VR Failed on Feb 16, 2018
3VR destroyed transformed ~$65 million in VC funding into a $6.9 million exit. The reason they failed is simple. They bet on analytics. They...
"Fear Mongering": Hikvision USA Cybersecurity Director Dismisses Chinese Government Ownership Concerns on Feb 16, 2018
The facts are: The Chinese government created Hikvision and is Hikvision's controlling shareholder. Hikvision's Chairman, a Communist Party...

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