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)

Note: Stock price was down 11% on Friday and another 7% on Monday. Prior to the results, stock was ~$25 but end of Monday was at $20.38

BusinessWeek has a new article about Avigilon following the Q2 2014 results. A few notable points:

  • Calls Avigilon "one of Canada’s worst-performing stocks"
  • Avigilon's CEO says that investments into future growth are more important and valuable than short term cost cutting
  • The article suggests that investors are concerned / nervous about sacrificing profitability to get growth, e.g, "investors are waiting to see if the company can execute on its revenue goal without damaging its potential to make profit"
  • Avigilon's CEO owns 10% of the company (worth ~$100million) [Bloomberg earlier reported 3.2%

Article says he owns 10% not 3% I think. I wish I owned 10%!

Mark, that article was changed from 3.2 to 10% after i posted my comment above. I've updated my comment to reflect the change.

[“We’re not waiting around for competitors to copy our stuff, and they will,” said Fernandes]

What stuff is he talking about? JPEG2000 recording?

What happend to all the posts?

Alex, what posts are you referring to? Please clarify.

DISCLOSURE - WE ARE AN AVIGILON PARTNER

I think the stock should have gone down because it was OVERPRICED and that's the main issue. Avigilon is profitable and have a ton of cash but not as profitable as investors would like because their valuation was ridiculous. I think the stock now more accurately reflects where Avigilon is currently.

I'm not sure what more you could ask of a company in this industry... Is any other company performing this well in this industry? They are making money and investing in future technology and growth. Their products are excellent and their support is great.

They are continuing to grow in sales but they show they made less money this quarter than last year - however, they have invested more money in ramping up their acquisitions which to me is a good thing. As a partner I am excited to see the resource investment in properly integrating the acquired access control and video analytics into the Avigilon platform. I would be worried if they were not spending the money and resources to do this.

You could say their stock underperformed because it was overvalued. However, Avigilon as a company keeps outperforming their competitors in almost every area and I think for those familiar with the industry it would be safe to say that they keep outperforming the expectations of most every industry professional that follows them.

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

Intersec 2019 Live Day 1 - Massive China Presence on Jan 21, 2019
There’s a massive presence from Chinese or China-focused video surveillance firms, chiefly Hikvision, Dahua, Huawei, and Infinova, at...
Mobile Surveillance Trailers Guide on Jan 17, 2019
Putting cameras in a place for temporary surveillance where power and communications are not readily available can be complicated and expensive....
UK Fines Security Firms For Illegal Direct Marketing on Jan 16, 2019
Two UK security firms have paid over $200,000 in fines for illegally making hundreds of thousands of calls to people registered on a government...
Avigilon Favorability Results 2019 on Jan 15, 2019
Since IPVM's 2017 Avigilon favorability results, the company was acquired by Motorola and has shifted from being an aggressive startup to a more...
Gorilla Technology AI Provider, Raises $15 Million, Profiled on Jan 15, 2019
Gorilla Technology is a Taiwanese video analytics manufacturer that recently announced a $15 million investment from SBI Group, saying this...
Arecont Costar Layoffs on Jan 14, 2019
Arecont Vision, a Costar Company, has laid off more than 10% of their workforce in a move the company described to IPVM as a result of "important...
CES 2019 Show Report on Jan 10, 2019
IPVM was at CES 2019 for the second year (see our CES 2018 Show Final Report) and is reporting on announcements and interesting news from the show...
2019 Video Surveillance Cameras Overview on Jan 07, 2019
Each year, IPVM summarizes the main advances and changes for video surveillance cameras, based on our industry-leading testing and...
CyberExtruder Face Recognition Profile on Jan 04, 2019
CyberExtruder offers 3D modeling face recognition software that they say provides quicker and more accurate matches than other 2D face recognition...
"At Hikvision, We Build Trust" on Jan 03, 2019
Hikvision has joined a growing number of video surveillance manufacturers marketing their trustworthiness. In a recent trade magazine full page...

Most Recent Industry Reports

The IP Camera Lock-In Trend: Meraki and Verkada on Jan 18, 2019
Open systems and interoperability have not only been big buzzwords over the past decade, but they have also become core features of video...
NYPD Refutes False SCMP Hikvision Story on Jan 18, 2019
The NYPD has refuted the SCMP Hikvision story, the Voice of America has reported. On January 11, 2018, the SCMP alleged that the NYPD was using...
Mobile Surveillance Trailers Guide on Jan 17, 2019
Putting cameras in a place for temporary surveillance where power and communications are not readily available can be complicated and expensive....
Exacq Favorability Results 2019 on Jan 17, 2019
Exacq favorability amongst integrators has declined sharply, in new IPVM statistics, compared to 2017 IPVM statistics for Exacq. Now, over 5 since...
Testing Bandwidth Vs. Low Light on Jan 16, 2019
Nighttime bandwidth spikes are a major concern in video surveillance. Many calculate bandwidth as a single 24/7 number, but bit rates vary...
Access Control Records Maintenance Guide on Jan 16, 2019
Weeding out old entries, turning off unused credentials, and updating who carries which credentials is as important as to maintaining security as...
UK Fines Security Firms For Illegal Direct Marketing on Jan 16, 2019
Two UK security firms have paid over $200,000 in fines for illegally making hundreds of thousands of calls to people registered on a government...
Access Control Cabling Tutorial on Jan 15, 2019
Access Control is only as reliable as its cables. While this aspect lacks the sexiness of other components, it remains a vital part of every...
Avigilon Favorability Results 2019 on Jan 15, 2019
Since IPVM's 2017 Avigilon favorability results, the company was acquired by Motorola and has shifted from being an aggressive startup to a more...
Gorilla Technology AI Provider, Raises $15 Million, Profiled on Jan 15, 2019
Gorilla Technology is a Taiwanese video analytics manufacturer that recently announced a $15 million investment from SBI Group, saying this...

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