Avigilon Massive Growth Continues

Author: John Honovich, Published on Feb 28, 2013

Bucking an industry trend, Avigilon's massive growth continued in calendar Q4 2012, with revenue growing ~73% year over year, even higher than their 2012 overall growth rate. The note below details the key financials details and most interesting comments made on management's call.

First, key details from Avigilon's 4th quarter financial report:

  • ***** **** ******* ***** $*** ******* (***), ** **% **** 2011's $** ******* (**** *** **** *******, **, ****** **** the ****'* *******).
  • *** ****** ** **** *** ~*%, *** **** ** *** quarter **** **** **** *** ****** **** ******* ******** ** 2012.
  • ********* ******** *** *** **** ********* ***% **** ~$* ******* in **** ** ~$*.* ******* ** **** *** ** **** was **** ** ~**% **** ** **** ** *** '***' program **** **** ******** ** ********* ******* ** ** ****
  • ******* ******** ********* * *** **** ****** **% **** **** year **** "******* ******** ** * ********** ** ******* **** fallen ** **% **** **%."
  • ******** **** ************* ************** *** *** ******* $***+ ******* *******

Massive ******** ****** *********

***** ******** ***** **** **% **** *** ** *** **** over ****. ********** **** **** ***** **** ******* *** ** more ********* **** ****.

R&D *********** ***

***** *&* ******** **** **** ** ~**% **** ~$*.* ******* in **** ** ~$*.** ******* ** ****. ****, ** * percentage ** *******, *&* ******** ** **** *-*%, **** ***** competitors. *******, ******** *****, "** ****** ** ******** ** ******** expenses, ** * ********** ** *******, ** * ***** **** typical **** ******** ***** ** ** ***** ** ********* *** expanding *** ******* *********." **** ** ***** ********.

Aiming *** ********** ******

******** ********** ****** ** *** ********** ******, ****** *****, ** contrast ** **** ** ********* ** '*** **** ********', *** mid ****** ***** **** ** **** ** ***** ******** *****.

Casino *********** ******

******** ******** ****** *********** **** * ****** **** **** **** recently *******: "** ** ******* *, **** *** ****** *** been ********* ** ** ****** ********* ** ** ********** ****** the *****, **** * ***** ** **,*** ******** ** ***** running ***** *** ***. *** ******* ****** **** ** **** was ** *** **** **** ****** & ***** ** ***********, New ******, ***** ******** *** *** ***, *** ******** *-******* analog ***** ******** *** *** ******** ****-********** *******."

****

* ***** *********** ** ** *** ******* ** ****-********** ****. In **** ** ******, ******** *****,"******** *** * ***** *********** to *** **** ********, ** ********** **** **** **** ********** to * ******* ********** ** *** ******* ** **** *** forward ** ** ******* ******* ** *** *****. *** ***** team ** ******* ******* **** ****’* ********* ****** ** ******* their **** **** **,*** ********* ** ** ********* ***** *** advantage ******** *** *** ********, *** ** *** ****** ** increasing ****** ** ****** **** **** ***** ****."

************, ****** *** ****, ******** ****** ***** **** **** *********** like **** *** ******* '**** **** ********* ***********' **** **** up **** ** ****** *** ********** ***** **** ** **** through *** *** ****** ******* ** ***** ***********.

Inside *****

******** ** ******* ** ****** ***** ****:"** **** ********** ** inside ***** ********** ** **** ****, ***** *** ** *** Dallas ******, ***** ********* ***** ******** ***** ** ***** ***** that **** ******* *** *******, ***** *****, ************** *** ****** mail *********. ** **** **** *** **** **** ********** ** generating *** ***** *** ********** *** ******** ***** *****. ** will ******** ** *** ********* ** ****** ***** ****** ****."

UK ***** ***********

*********, ** ****** ** *** ***** *********** ** '****' **%. Avigilon *****, "*** ** ****** ** *** ** *** **** highly *********** ********, *** *** ********** ** ************, *** ** experiencing * ********* ******* *********. *******, ** ** *** ******* that *** ******** ** *** ****** ******* ** ********** ** a ******** ** *** ****** *** ************ ** *** **, nor ** * ******** ** *** ********* *** ******** ** this ******, ** ** **** **** * ****** ** *** delayed ***** ***** ** *** ***** ******* ** **** *** anticipate *** ******** ** *** ****** ** ***** ****** *** end ** *** *******."

Asia *******

* *** **** ***** ***** ** *** **** / ******* region. ******** ***** **** **** *** ******** ***** *** ***** force, ****** **** ***** ******, ****** **** ** ***** **** longer ** **** ** ****** ** ** ***** ***. ***** Asia / ******* **** **% ** $*.* *******, ** ** still **** */**** ** ** *******, ** ** *******.

Future ********

******** **** ********* **** ***** **** *** *******, *** *.*, is ******** ** ** ******** ***** **** ****.

Competitive ****** **** / *** ****** ***** ***

******** ****** *** *********** ****** ******* ********* **** **** **** except **** * ******* ** ********** ********* **** *** *** year *** *** ***** ***, *** ***** ********* *** ***** choosing ********. **** *** *** ******* *** ******** ********* ** that ******* *** ** ***** ******* ******** ********, ********* ******, NICE, ******, ***.

IPVM's ********

*********, ** ********* ****** *******, **** **** **** ********** ******* (1) ***** ******* ****** **-*********** (**** ** ** **%) *** (2) ***** **** **********'* ******* ****** *** ****** *** ************ (i.e., *****************'* ****** *******). *** **** ******** **** ** *** ** the ********* *** ********** ** *&*. ** **** ** *********** to *** **** *** ** ******** ******* ******* ** ***** plans ** ******** *&* ** '******** *****', ***** ***** **** more **** ******** ************, **** ******* ********* ** *** ********* growth.

*** ** ***, ********'* ***** ********* ********* ***** **** *********** slow **** ** **** ******.

Comments (13)

"As of January 1, 2013 our system has been installed by 53 casino operators in 67 properties around the world, with a total of 10,420 channels of video running under our VMS. Our largest casino sale in 2012 was to the Hard Rock Casino & Hotel in Albuquerque, New Mexico, which included our ACC VMS, 250 Avigilon 4-channel analog video encoders and 200 Avigilon high-definition cameras."

As I've stated many times about Avigilon - maybe suitable for small venues but not for large-scale casino use. According to one source, Avigilon has supposedly fixed some of the issues that we dinged their system for in December (we tested them in July):

Released December 14, 2012
New Features
•Substantially reduced latency from video capture to display for analog PTZ cameras
•PTZ pattern execution support added to Kalatel protocol
Issues Fixed
•Potential camera time sync issue resulting in a streaming error is resolved
•Pan/Tilt speed in Pelco P and Pelco D protocols is fixed
•Menu button support is removed from Kalatel protocol
•Frame rate is not changed when encoder is rebooted without an analog camera connected
•Various web user interface issues resolved

10420/53=196 = small casinos.

Carl, they mentioned that some projects are in the middle of a staged rollout, so the average total count per casino is likely high - how much I do not know.

That said, getting 50 casinos in their first year or so is an impressive rate.

Yes, but then again, Sanyo sold a boatload of their DSR-M8xx "Casino DVR"s for one reason: they were the cheapest system per channel available. Never mind the 25 second latency (later reduced to ~5 seconds) or the fact that if one user was playing back from a DVR, no one else could at the same time.

Corporate casinos (and some others) are notorious for not wanting to spend more than is absolutely necessary on Surveillance. That's why there are still casinos using VCRs in this day and age. And that's where Avigilon comes in. Their system is among the lowest cost and that's what casino management wants to see.

No doubt, the cost advantage is very important for Avigilon, more so than the overdone and misleading claims of higher quality. However, the question is whether casinos will find it good enough or complain. As you note above, they claim their latency has diminished with the December 2012 release. Obviously, PTZ control is key to casinos so it will be interesting to see how much better it now is.

Casinos will shove nearly anything down the throats of their users (Sanyo is proof of that) to save a buck. In fact, I designed and helped install a ~120 channel system for a tiny casino (349 slots, a bar and a small restaurant). I used the Sanyo single and 4-channel DVRs (4CIF total for either, so 1x 4CIF or 4x CIF). We had to fit the entire Surveillance Department, including fixed and PTZ cameras, a Pelco 9760 matrix switch, monitors, two workstations and even UPS and HVAC into a $200,000 budget.

I've had a couple of people question why we didn't re-test Avigilon after their "fix" was released. We can't keep inviting vendors back every time they claim to have fixed an issue. We would still be testing systems years from now, instead of enjoying the new system.

Carl, It would probably be worth your time to evaluate again since the modifications. Based on extensive experience I think you will be pleasantly surprised. From a business perspective it's good to stay on top of the game...

Joshua, I'm not an Integrator. I am a casino end user. If I was an integrator, I would possibly consider Avigilon for some projects although I almost certainly would also sell a higher-end solution for more sophisticated end users. Avigilon just had too many negatives.

[IPVM Editor's Note: Carl's review has been moved to its own topic so that members can focus on financials here and consider technical reviews there. See: Casino End User Avigilon Review.]

Let's return this topic to Avigilon's financials. Anyone interested in technical issues can go to and comment on Casino End User Avigilon Review.

just a stellar company. a great product with a great sales team equals success.

Check this out. Quite a testament to the impact Avigilon has had - PSA is running a seminar session on beating Avigilon:

I think Avigilon is covering the segment of the market that Cisco always dreamed about getting into but never could pull it off. If Cisco of the year 2000 was still around, they would have bought these Canadians up in a heartbeat. However today is different and the market will be fragmented for a while. Looks like they wiped out the IQEYE, IndoVisions, Verints of the world. In order for Avigilon to take the next step from a 2nd tier company, they need to go to distribution or they will be stuck in the 150 million range forever. Also, end users should be wary about security intergators falling in love with this company. They may end up getting not as good as system they could have. If and when Avigilon releases a mediocre product, the intergator will still sell it to the end user because they are so loyal to the company. They just want to sell because it has the Avigilon name on it. I mean how many 3rd party cameras are deployed on Avigilon sites? (For historical references see Pelco) Nice product, but a young company that still needs to prove itself.

I am curious to see how they scale up and what changes this brings to their channel. I don't know if the number is 150 or 200 or 250, but at some point, it appears that they need to broaden their channel. How they do it will be key - expanding dealer base, selling through the ADIs of the world, etc.? It will be interesting to see how that plays out.

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

Magos Radar Company Profile on Nov 12, 2018
Magos America General Manager Yaron Zussman admits when he first came across Magos, he asked himself: "What's innovative about radar?" Be that as...
Axis 2N Intercom Tested on Nov 08, 2018
Axis expanded its video intercom business buying Czech-based 2N in 2016. Despite competing against owner Axis' intercoms, 2N recently registered as...
Ubiquiti Protect Video Surveillance Profile on Nov 07, 2018
Ubiquiti has now been in the video surveillance market for 7 years (see our first coverage back in 2011). In that time, the company's revenue has...
Dahua Dual Imager Dome Camera Tested (HDBW4231FN-E2-M) on Nov 07, 2018
Dahua has introduced a dual-imager dome model, the HDBW4231FN-E2-M, with two independently positionable sensors including integrated IR, not found...
Avigilon Opens Up Analytics And Cameras on Nov 06, 2018
Avigilon is opening up. The company historically famous for advocating its own end-to-end solutions and making it harder for 3rd parties to...
Worst Products on Nov 03, 2018
Security integrators periodically report on their favorite and worst products to IPVM. These are known integrators who IPVM pays to answer surveys....
Unisight Company Profile on Nov 01, 2018
Hikvision's largest US OEM, LTS has started to carry Unisight, whose products (shown below) look a lot like Hikvision's rival Dahua: Who is...
Wyze Explosive Growth Disrupting Consumer IP Camera Market on Oct 30, 2018
Wyze, a company founded only in 2017, is poised to disrupt the consumer IP camera market by combining American marketing and Chinese manufacturing...
VMS Camera Management Shootout - Avigilon, Dahua, Exacq, Genetec, Hanwha, Hikvision, Milestone, Network Optix on Oct 29, 2018
Camera setup, configuration and maintenance are the most common tasks when managing a surveillance system. Who does it best and worst? Who offers...
Huawei To Be “Top Three Global Position” in Video Surveillance on Oct 29, 2018
Huawei - China’s biggest networking gear and smartphone maker - plans to become one of the top three global video surveillance manufacturers in...

Most Recent Industry Reports

Integrator Credit Card Alternative Divvy on Nov 13, 2018
Most security integrators are small businesses but large enough that they have various employees that need to be able to expense various charges as...
Directory of Video Intercoms on Nov 13, 2018
Video Intercoms, also known as Video Door-Phones or Video Entry Systems, have been growing in the past decade as more and more IP camera...
Beware Amazon Go Store Hype (Tested) on Nov 13, 2018
IPVM's trip to and testing of Amazon Go's San Francisco store shows a number of significant operational and economic issues that undermine the...
Magos Radar Company Profile on Nov 12, 2018
Magos America General Manager Yaron Zussman admits when he first came across Magos, he asked himself: "What's innovative about radar?" Be that as...
Genetec Privacy Protector Tested on Nov 12, 2018
Genetec has built Kiwi Security's Privacy Protector into Security Center, an analytic which anonymizes individuals in cameras' fields of view...
Chinese Government Increases Hikvision Ownership on Nov 12, 2018
The Chinese government - Hikvision's controlling shareholder - is increasing its ownership of the video surveillance giant amid sharp stock price...
Axis: "No One Wants To Buy A Camera" on Nov 09, 2018
Axis has, in its own description, made a bold declaration: The industry is changing so rapidly that the following statement might seem bold but...
Video Surveillance Hard Drive Size Statistics 2018 on Nov 08, 2018
What is the most common hard drive size for video surveillance? 150+ integrators answered: What size hard drive do you most commonly use? What...
Axis 2N Intercom Tested on Nov 08, 2018
Axis expanded its video intercom business buying Czech-based 2N in 2016. Despite competing against owner Axis' intercoms, 2N recently registered as...
Haven Targets School Security with Lockdown Lineup on Nov 08, 2018
Haven, a US startup founded in 2014 as a residential-focused company, has now raised funding and is offering a lineup of commercial grade locks for...

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