Avigilon Profit and Stock Price Drops Q2 2014

Author: John Honovich, Published on Aug 11, 2014

Battered by the controversy over their CFO's badly timed exit and a report questioning their revenue recognition, Avigilon further disappointed investors with their Q2 2014 performance.

In this note, we examine these results including 2 geographic areas where growth declined sharply and concerns about slowing expansion.

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

** **** ****, ** ******* ***** ******* ********* * ********** areas ***** ****** ******** ******* *** ******** ***** ******* *********.

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

Q2 **** ******* **********

*** **** ******** ****** **********'* ********* ********** *** **** ******* ** **% **** **** ****, ** $65.1 ******* *** *** *** *******. *******, **** *** ***** some *******'* **********.

*** **** ********** ********* ****** *** *** ******* ******** ** half **** ****** **% ** ** **** *** ***** *% for **** *******. ******, ******* ******* ******* **%, ***** ******* were ***** **** ******* **** *** **** ***. ** *** contrary, ********'* ********** ********* ** ********* **** *** **** ****** is *** *****, *** ***** **** *******.

Drivers ** ****** ****

******* ******* ********* ******* ********* ******** (****) ********* ****** **** revenue (**% ** **%).

***** *** ********* ***** ********* ** ******** **** **** *******. However, it ** *** ******* ***** ** *** *** **** ****** ******* Avigilon **** ******* ********* ***** *** ********* ***** **********. **** noted, ***** ** ****** *******, ** ******* ********* ***** **** trending **** ***** ***** *** ********** **********.

*** **** ******** ** ********* ***** ******* ** ** **** the ******* *** ******** ************, ***** ***** ** **** *&* and *********** *****. *&* ***** **** ** ***% ***** ***** R&D ******** **** ** ***%.

***** ********* ** ******** *** ********** ***** **** *********** *** the ******* *** ** ******* ********* ********* *** **** ********* significantly ****** *******. 

Hiring ****** *** ** ********* ****

******* ******** ********** * '***** ********' ** ********* ** ****, Avigilon **** ***** ** ***** ********* ** ** ****, ** just *% *** *** ******* (*** ** ***).

******** ********* **** **** **, "********* ** ****** * ******* and * ******* **** ** **** ** *** ******* **** A ******* *** ** *** ******* ***** *** ******** ******." Of ******, **** **** ***** ****** (*, *, ***.) ** maintain ***** ****** ****. ** ***** ** **** ******** ****** needs ** ** * ****** *** ** *********** ** ** may ** **** * *******, ********** ** *****, *** ********* about *** *******'* **********.

** *** ***** ** *** ****** ********, ******** *** **** 3 *** ** *********. ******** *** *** ******** ***** ********* *** **** ** ***** ****. ****** ******* ** ***** ****, ***, **********, *** ******** ** ****** *** ****** **, ******** ******** *******. ***** *** **** ******* ** ****** ******* *** **** proclaimed**** ********'* #* *** *** **** ******** ****. **** ** **** ** ****** *******, **** ** ****** to ****** ****** *******. 

Growth ******* **** - ***** ******* *** ******

*** *** ************* ******* **** ******, **** ** ******** ******* 19% ****, *** ***** *******, **** * *** ***** *******, 12%. ******, ***** ******** *** **** ******, ** ****** ******** saturation. *******, ***** *******, **** ** ****** *** **** ** less **** $* ******* ** ** ********* ****** ****** *** Avigilon. **** **** **** ** **** ** *** ****** ******* here. ****** *******, *** ************* ******** ** ***** ******* ****** ***.

US ****** ******

** *** ******** ****, ** ******* *** ** ** ********** 93%, ** $** ******* *** *** *******, *** ************ **% of ********'* ***** *******. **** **** ** *********** ** *** is *** **** **** *** ** ******* ****, ***** ******** has ************ ********* *** ** **** ****** ** ****. *** example, ******** *** *** * ****** ************ ** **** ***** ****************** ** *** ******** ********* ********* / ***** ******** ******.

Underwater *******

******** ******* ***,*** ******* ** *** ***** **** ** ****. Unfortunately, **** ** ******* ****** ***** ** $**.**, **** *** significantly **********.

****** *** *******'* ********** ******* *** **** ******** *** **** its *********, *** ******* ***** ***** *******, ** ** *********, will **** * ********** ****** ** ******** ************ *** ******** in *** *******. ******** **** *** *******'* ****** ************* ** its **-********* (*,*) *** **** ***** **** *********** *** *********.

Enterprise ***** ******

******** *** *** **** **** ******* ** *********** *****,**** $**.* million ** ***** ********** *****, **% ** *** *******. ******** defines **** ***** ** "******** **** **** ****** ***** ** a ****** ****** **** ***** *** $***,*** ** *******."

** ****** ******** ******** ***** **** ********** ***** ********** *** as **** ** **% *** *** ** *%, **********, "**** ******* could ****** ** **** ******* ** ** ***** ** **% it’s ****** **** ***** * ***** ** *** **** ** it ****-****-**** ***** ** *** ******** **."

********** *****, *******, ** ** **** **** *** ******* *** been ******** ** *******.

Channel ******** ******

** ******** ** *** ******** ********** ************ *********** ***** ** ******* ********, ********'* *** ****** **:

"**** ** *** *********** ** *** **** ***’* ***** ******** product. *** ****’* *** ** *** *********** **********, ** **** they ***’* **** *** ****** ** **** *** ** *** answer ** ***** ** *** **** ** ***** **** ******* there *********** ** ** ******** ** ******** ********* ** *** channel, *********** ** *** ***** ** **** **** ** ** filled. ** ********* **** ******* ****** **-***** *** ** ********* ship ********* *** **** ******* **** ********* ********* ****** **** of ********."

Comments (9)

****: ***** ***** *** **** **% ** ****** *** ******* 7% ** ******. ***** ** *** *******, ***** *** ~$** but *** ** ****** *** ** $**.**

************ *** **** ******* ********************** *** ** **** *******. * *** ******* ******:

  • ***** ******** "*** ** ******’* *****-********** ******"
  • ********'* *** **** **** *********** **** ****** ****** *** **** important *** ******** **** ***** **** **** *******
  • *** ******* ******** **** ********* *** ********* / ******* ***** sacrificing ************* ** *** ******, *.*, "********* *** ******* ** see ** *** ******* *** ******* ** *** ******* **** without ******** *** ********* ** **** ******"
  • ********'* *** **** **% ** *** ******* (***** ~$**********) [********* earlier ******** *.*%

******* **** ** **** **% *** *% * *****. * wish * ***** **%!

****, **** ******* *** ******* **** *.* ** **% ***** i ****** ** ******* *****. *'** ******* ** ******* ** reflect *** ******.

[“**’** *** ******* ****** *** *********** ** **** *** *****, and **** ****,” **** *********]

**** ***** ** ** ******* *****? ******** *********?

**** ******* ** *** *** *****?

****, **** ***** *** *** ********* **? ****** *******.

********** - ** *** ** ******** *******

* ***** *** ***** ****** **** **** **** ******* ** was ********** *** ****'* *** **** *****. ******** ** ********** and **** * *** ** **** *** *** ** ********** as ********* ***** **** ******* ***** ********* *** **********. * think *** ***** *** **** ********** ******** ***** ******** ** currently.

*'* *** **** **** **** *** ***** *** ** * company ** **** ********... ** *** ***** ******* ********** **** well ** **** ********? **** *** ****** ***** *** ********* in ****** ********** *** ******. ***** ******** *** ********* *** their ******* ** *****.

**** *** ********** ** **** ** ***** *** **** **** they **** **** ***** **** ******* **** **** **** - however, **** **** ******** **** ***** ** ******* ** ***** acquisitions ***** ** ** ** * **** *****. ** * partner * ** ******* ** *** *** ******** ********** ** properly *********** *** ******** ****** ******* *** ***** ********* **** the ******** ********. * ***** ** ******* ** **** **** not ******** *** ***** *** ********* ** ** ****.

*** ***** *** ***** ***** ************** ******* ** *** **********. However, ******** ** * ******* ***** ************* ***** *********** ** almost ***** **** *** * ***** *** ***** ******** **** the ******** ** ***** ** **** ** *** **** **** keep ************* *** ************ ** **** ***** ******** ************ **** follows ****.

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