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

Author: John Honovich, Published on May 05, 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

Avigilon Stock Surges 40% On Strong Growth (Q3 2016) on Nov 15, 2016
The roller coaster continues. After a brutal Q2 heading down, Avigilon's Q3 growth is strongly up. Inside this note, we examine what powered...
FLIR Security Revenue Reviewed on Oct 31, 2016
With acquisitions of Lorex, DVTel and ISD, adding to their core thermal offerings, FLIR has been building up its presence in the security / video...
Axis Video Revenue Down (Q3 2016) on Oct 20, 2016
An important milestone. Axis revenue for video products is down year over year. But Axis is now focusing on 'diversification'. In this report, we...
Hikvision Declares No Subsidies But Financials Show $189 Million Subsidies on Oct 13, 2016
Hikvision alleges that they receive no subsidies but their own financial records show $189 million of subsidies in 2015. Hikvision 'overseas' has...
Avigilon CEO Aims For $3 Billion on Oct 05, 2016
Despite Avigilon's stock price collapse, management turnover, decelerating growth and net losses, Avigilon CEO shows that he is optimistic as...
Avigilon Stock Plunges On Bad Financials (Q2 2016) on Aug 16, 2016
Avigilon's stock went down 25% the day after it announced earnings. The stock had already been down by more than 60% from its peak. The market is...
Hikvision's Largest European Distributor Making Huge Profits on Jul 04, 2016
No money to be made in distribution? The race to the bottom is destroying profits? Well, not for Hikvision's largest European distributor,...
Pelco - A Decade of Decline on May 16, 2016
Pelco's 2007 acquisition for $1.5 billion USD remains one of the largest video surveillance deals ever, even including the industry's recent wave...
Avigilon Weakest Quarter Ever (Q1 2016) on May 11, 2016
Just 2 years ago, Avigilon revenue grew an astounding 74%. Now, that feels like 20 years ago. Avigilon's growth rate continues to fall, while...
Anixter Security Slow Sales Continues Q1 2016 on Apr 27, 2016
Anixter shook things up in 2015, paying $420 million for Tri-Ed. Now, nearly 2 years later, Anixter's slow security sales continue. In this note,...

Most Recent Industry Reports

Hikvision vs Dahua Mobile Apps Tested on Dec 07, 2016
With smartphone use and low-cost video recorders surging, many user's main interface to their surveillance system is their phone. With mobile video...
Paxton Drops US Reps, Plans Major Expansion on Dec 07, 2016
Paxton is gearing up to make a big run at  US access control success. The first step they have made is to cut all US Rep Firms, in anticipation of...
Axis Partner Elder Care Video Analytics (Smartervision) on Dec 07, 2016
Can video analytics be used to improve the care of the elderly? Axis and a video analytics startup, Smartervision, are working together to do so....
Power Drill Selection Guide on Dec 06, 2016
Boring holes is a basic part of running cables for most security system projects. To do so, you will need to choose the right drills for various...
Milestone Favorability Results on Dec 06, 2016
In our second installment of manufacturer favorability results (first was Pelco), we turn to Milestone. 100+ integrators rated and explained what...
XiongMai Master Password List Emailed By Chinese Spammer on Dec 05, 2016
XiongMai created an international uproar as their devices drove massive botnet attacks of major Internet sites. After pledging to recall cameras...
Hikvision Cloud Security Vulnerability Uncovered on Dec 05, 2016
A security researcher uncovered a critical vulnerability in Hikvision's global cloud servers. This vulnerability allowed an attacker to remotely...
Door Operators Access Control Tutorial on Dec 05, 2016
Doors equipped with door operators, specialty devices that automate opening and closing, tend to be quite complex. The mechanisms needed to...
Pelco Favorability Results on Dec 02, 2016
This is the first in a series of studies of manufacturer favorability. 100+ integrators rated and explained their views of each manufacturer. We...

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