Avigilon CFO Out and Q1 2014 Financials Reviewed

By: John Honovich, Published on May 08, 2014

Avigilon's revenue increased 74% year over year, powered by foreign exchange rate swings and the inclusion of VideoIQ revenue.

Avigilon's CFO exited the day before, the 4th executive gone in 6 months (after marketing, operations and HR), triggering fears and a stock price 'slam'.

In this note, we examine the financial details and implications of these results.

********'* ******* ********* **% year **** ****, ******* by foreign ******** **** ****** and *** ********* ** VideoIQ *******.

********'* *** ****** *** *** ******, the *** ********* **** in * ****** (**************,***************), ********** ***** *** a ***** ***** '****'.

** **** ****, ** examine *** ********* ******* and ************ ** ***** results.

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

*** *********** ******** ** that *******, ***** ********, revenue ****** *** ** the ***** ** **% to **%. **** ** still **** ******, ****** notably ***** **** *** past ****.

Results ****** / ************ ** **** ******** ******

** ******** ********* ** their********* ******:

"******* ** *** ***** quarter **** ******** *** impact ** * **** Canadian ******. * ***** portion ** *** ******* is *********** ** ** dollars (“***”), ******* ****** (“GBP”) ** ***** (“***”), depending ** *** ******, although *** ******** ** the ** ****** ** the **** ***********. ** discussed ** *** **&* for *** ****** ******* of ****, ***** ** our ********* ******* *** 2014, ***** $*.** ****** in *** ******** **** of ******** *******  (“***”) per *** *** ** estimated $*.* ******* ****** on *** ****** *** a $*.** ******* ****** on ***
******."

**** **** ****, ***** was * ******* * cent *****, ** ***** in ******* - *** ******** rate *****:

** ********'* *** ****** of $*.** ******* ****** on *** ****** **** would **** * ******* / **** ** $*.** million ******, ********* *** just **** ******* **** is ~$*.* *******, ******* compared ** ***** ********* net ****** ** $*.** million *** ** ***** quarterly ******* ** $**.* million. [****: ******** *********** ******* **** ********* this ******** ****** **** quarterly].

VideoIQ ******

******* ***** $*.** ******* for *** ******* (*** an ****** **** ** ~$10 *******), ***** *** not ******* / ********* for ** *** ********** Q1 **** *******.

Net ****** Best **** *** ****** ** ******** *****

******** ****** *** **** ever *** ****** ** $8 ******* *** **.*%. However, ** ********* *****, exchange ***** ****** ******* most ** *** ********.

****, ********* ** ******** ratio ****** ** ********* because **** *** **** as ****** ***** *** other *** ** *** time, ** ***** (** losses) ***** **** ****** ** demonstrate *** ********** ******** strength.

Sales ******** **, ********* ******** ****

***** ******** **** ****** doubled **** ** *** previous ****, **** ********** ********* of *** ***** **** for ****** ******.

*******, ********* ******** **** actually ******* ****, **** Avigilon **********:

"********* ******** ** *** first ******* ** **** were $*.* *******, ** 24%, ***** **** ********* expenses ** *** **** period ** **** ****. This ******** ** *** result ** * ********* in ******* ********** ********* a ************ ** ********* priorities ********* *** ********** in ********* ************** *** marketing ** *** *** of ****, ** **** as *** ***** ** certain ******** ***** **** reassessment *** ********. ** anticipate **** ***** ******** will ** ******* ** the ****** ********, ******* in *** ****** ******* of ****, ******* *** overall ****** ** ********* expense ** **** ** anticipated ** ** ***** than ** ****."

Avigilon *** ***

*** *** ****** ******** release, ******** ********* **** ***** ***, **** ****** "** ** ****** **** the *******." *** ******** CFO (***** ****) *** current ********, *** ****, **** ** ******* CFO ***** * ********** can **** * ********* replacement.

******** **** ******'* **** is "** ********** **** a ******** ****** *****."

** *** **** * months, ********** ** ****** of **********, *******, ********* *** ***** ********* **** *** ****** ********.

CFO **** ****** ******** *****

********'* ***** ***** ***** down *** ******* ***** the *** **** ************ ('*******'), ***** ** *** ** -20%, ****** ****** *** day **** -*.**%, ** shown ** **** * day ***** *****:

****** *** * ****** one *** **** ** ~4 ******* ****** ******.

*** ************* ******* ****** concerns, **** **:

  • *** ***** **** ******** this ** ***** ****** the ********* ********* ******* were ********?
  • ** ** ** ****, why ** ** *** simply ****** * ***** of *******, ****** **** being '** ****** **** the *******'?
  • ** ***** * ******* of ********** ******* ******** and **** **** **** say ***** *** *******?

*** ********* ********* ******* certainly ******** ***** *** helped * *******. *******, it ** ******* ******* the *** **** ************ was ****** * ** blunder ** ** ****** to **** *********** ********** concerns.

* ****** ** ******** ****** concerns **** **********, "***** ***** ** no ****, *** ********* some *****."

** *** *** ** the ********'* ****, *** analyst ***** ** ************* or ****** **** ********** procedures ******** **** *** CFO's ****. ********'* *** said **** *** ** impact *** ******** ** all ** *** ***.

Employee ******

******** ***** *** *** employees **** *** **** 3 ******, ******* **** 455 ** ***, ** increase ** **%.

*** ** *** *** most ******* ******** *********, increasing **% **** ** to *** ******. *******, that ****** ******** *** added ******* *********.

Options ***** *****

********'* ***** ***** ****** at ~$** ** ********. It ** *** ******* in *** $** ** $26 *****, ***** ******* for *** **** * months *** *** *** after *** *** ************.

**** ** * ********* matter *** ******* *** prospective ********* ** * rising ***** ***** ********* mean ***** ***** *** stock *******. *******, *** the ***** ****, * significant ****** ** *** Avigilon ******** ******* *** now ********** ** ************ by *** ***** *****:

******* *** ***** ***** moving **** ** ** important *** **** *** investors *** ******** *********.

Termination ********

******** ******** $***,*** ** **** benefits ** ********** *** management *********. ****** ** details **** ********, ***** terminated *** ******** ** Q1 ******* *** ********** executive *** *** ** executive.

**** ***** ** *** call ***** *** *********** benefits *** *** ***, Avigilon's *** *** *** give * ****** ****** either ***.

Conference **** *****

**** *** ***** **** the ********'* ********** **** (***** ********* *** ****):

  • *** ********** **** **** off ********** ** *** *** leaving *** **** ** new ******* ** **********.
  • ***** ********* ***** ** ***** America *** **** *******
  • *** ***$*** ******* ***********, ********** **** **** are ********* ********* **** acquisition ************* *** **** cash ****** **** ** aggressively **** ********* ** good *************.
  • "***** *** **** ** unwavering"
  • ******* ****** ***** ********* changes: ** ******** ***** open, ********** ********* ***** open, ****** ********* ******** still ****
  • **** ****** ****** *** CFO ******* '***'
  • ****** ******* ******* ***** are '******* *** ******* high' ***** ***** ***** but ** **** ******** detail
  • ********** ***** **** *% of ***** ** ** 2014, ******** ** **% in ** ****, ********** that **** ***** *** 'lumpy'
  • "******** *** ***** **** as ****** ... ** the ******* ** *** company"
  • ********* ****** ******* ******* - *** *** ********* acceptable *******
  • ** - ** ***** window ** ********* *** SAP *** ******, *********** **** it ** *** * rush
  • ****** ******* **** ** a *** **** ******** license **** ** *********** fee
  • **** '** ***** *******' as **** ***** '**** lower ***** **** ** ownership'

Comments (12)

Is there a reason that IPVM discusses Avigilon in so much detail? Especially their financials, personnel movements, etc. ?

For the same reason sports blogs talk about the Broncos and tech blogs talk about Apple. People are interested.

Related, the Ranking 95 Surveillance Manufacturers Interest provides a good summary / overview of what manufacturers IPVM readers are most interested in tracking. Avigilon is #2, behind only Axis.

Undisclosed, Till this article the Avigilon has been much praised for alot of what they have done. IPVM has done this due to the company product and VMS being above average. this article in my mind helps me knowing John and his team are still not bias to anyone. This helps as I had felt Avigilon was getting alot of press from them above the simple facts they have a good product.

being neutral and calling out both good and bad things about our industry is why IPVM has my support and the fans it has.

the movements of this now staggering giant is interesting on many levels

with that many key positions open we all wonder if they got too big too fast and the people just simply could not keep up with the growth..... they looked like they were going to be the new "name" in the industry but with all this Noise it will be hard to regroup......

They may rally they may not.

time will see.

Undisclosed A Manufacturer,

As an integrator, I care a great deal about the financial status and leadership of the manufacturers in the industry. We rely on manufacturers, along with many others outside our company, to successfully serve our customers. I want to know that the products we specify are built by a solid companies that will be around tomorrow and share our business philosophies and values. When I engage manufacturers, distributors, or any other vendor that has a role in our ability to service our customers, I inquire more about their company than their products. We are in a great moment in the security industry; there are many great products from which to choose. However, there are many differences in the companies that make those products. The information we gain from IPVM, along with other industry research and direct questioning of vendors, goes into our selection of manufacturer partners. I find great value in what IPVM discusses.

To be honest,

Avigilon has been one of the more interesting manufacturers in the security industry. They protect thier product line and avoid distribution, they produce a somewhat unique series of products, have acquired several different companies in a very short time and have grown in size very very quickly. Couple this with the rapid change of high end personnel and it makes an interesting story to follow.

Curiosity.

Is the CFO normally on Avigilon's investment call? If so that's definitely a no-no, as it indicates a possible disagreement over how or what to release in the financials. The fact that there is no replacement named and no customary LOA w/ fade, points towards an abrupt event. Not helping is the passively voiced and indirect 'in connection with a personal health issue', which is either a carelessly constructed exit statement or the best result of a fiercely negotiated one.

Uncertainty, especially around finance execs is heavily taxed by the market. This is not specific to Avigilon, any public company with decent volume would be punished by the market if they were reporting similar news.

Yes, the investor's call typically is hosted by the CEO and the CFO, who jointly explain the results and answer questions.

That there was some disagreement with the financials is one concern / hypothesis being raised. However, it could be the abrupt event was simply news of a health issue, though, it happening literally right before the financials were released obviously increases the level of concern...

The other aspect I get from investors / analysts was that the CFO was liked / trusted / respected by them, so for him to leave under these strange circumstances increased the level of angst.

Although not meant to disparage Avigilon's account of the untimely separation, it seems that there are more 'unrelated' senior exec departures that occur in public companies immediately preceeding the release of financials then one would expect by chance. Maybe related to the phenomenon of skyrocketing grandparent mortality rates right before college finals...

it is soooo true... like i had a pal who lost all 7 of her grand parents over the course of her 4 year degree.....

seems like they fell on ice in Dec and got heat stroke that lead to death in May.... Odd.........

(True story. well her grandparents were all dead but years earlier.. and she only had 4......)

"Is there a reason that IPVM discusses.....,." This question alone has generated discussion. In my opinion, the fact that this question was even posted smells of something "fishy" within the walls if Avigilon!! At the end of the day why do execs leave a company? Is it lack of compensation? Or is it because they are not the final decision makers that their executive position should afford them? I would leave too, of course, under the guise of 'chest pains' or the like. Who is calling the shots? The CEO? Hardly.....there are shareholders but to me it seems that an under qualified entity seems to think they can do it alone and apparently still has the power to do so! Don't forget your mothers today and listen to her advice. Have confidence in your team .

It all makes sense now! B. S. is really A. F.'s mother? ;)

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

Anyvision Aims For 2022 Revenue of $1 Billion on Jul 17, 2019
Only 3 video surveillance manufacturers do a billion dollars or more in annual revenue - Hikvision, Dahua, and Axis. Now, Anyvision plans to join...
ZeroEyes Gun Detection Startup on Jul 16, 2019
A gun detection video analytics startup, ZeroEyes, is being led by a group of 6 former Navy SEALs, aiming to "save lives" by using AI to assist...
Avigilon President Henderson Is Out on Jul 09, 2019
Avigilon's President and COO James Henderson is out, abruptly, after a remarkable ascension over the past 8 years, Motorola VP Jack Molloy has...
Bosch Integrating Sony Video Security Sales And Marketing Team on Jul 03, 2019
What is the future of Sony in video surveillance? In 2016, Bosch and Sony announced an atypical 'partnership'. Now, Bosch tells IPVM that they...
RaySharp Revealed - Major China OEM For Western Consumer Video Surveillance on Jul 02, 2019
RaySharp is mostly unknown, even among people in the video surveillance industry, though it is a major supplier of OEM surveillance equipment such...
2019 Mid-Year Video Surveillance Guide on Jul 01, 2019
IPVM's new 400+ page Mid-Year Industry Guide brings all of these issues and events together in a single resource to read and review. It can be...
Ivideon Russian VSaaS Profile on Jun 27, 2019
Ivideon was an early VSaaS entrant, initially focusing on the consumer market, claiming massive growth to IPVM in 2014. We spoke to Ivideon, to...
Hikvision USA Giving Free Cameras In Biggest Flash Sale on Jun 26, 2019
Hikvision redefined sales promotions in the US video surveillance market, starting at the end of 2015, with across the board discounts.  Now,...
Directory of 59 Video Surveillance Startups on Jun 25, 2019
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly known. 2019...
Genetec Beats Milestone For IHS #1 on Jun 21, 2019
For years, Milestone has touted that they are the #1 VMS. Now, Genetec has beaten them in IHS rankings. But what is this? Even other manufacturers...

Most Recent Industry Reports

Wyze Disruptive AI Analytics Tested on Jul 17, 2019
$20 camera disruptor Wyze has released free person detection deep learning analytics to all of their users, claiming users will "Only get notified...
Anyvision Aims For 2022 Revenue of $1 Billion on Jul 17, 2019
Only 3 video surveillance manufacturers do a billion dollars or more in annual revenue - Hikvision, Dahua, and Axis. Now, Anyvision plans to join...
HD Analog vs IP Guide on Jul 16, 2019
For years, HD resolution and single cable signal/power were IP camera advantages, with analog cameras limited to much lower resolution and...
How To Troubleshoot Wiegand Reader Problems - Inverted Wiring on Jul 16, 2019
Wiegand is the dominant method of connecting access readers, but problems can arise for installers. In fact, one of the most difficult reader...
ZeroEyes Gun Detection Startup on Jul 16, 2019
A gun detection video analytics startup, ZeroEyes, is being led by a group of 6 former Navy SEALs, aiming to "save lives" by using AI to assist...
Motorola Acquires Watchguard, Adds to Vigilant And Avigilon on Jul 15, 2019
2 years ago, Motorola had no position nor relevancy to video surveillance. Now, they own major video surveillance, LPR and body camera providers...
Hikvision Global News Reports Directory on Jul 15, 2019
Hikvision has received the most global news reporting of any video surveillance company, ever, ranging from the WSJ, the Financial Times, Reuters,...
Vivotek Trend Micro Cyber Security Camera App Tested on Jul 15, 2019
Vivotek and Trend Micro are claiming five million blocked attacks on IP cameras, with their jointly developed app for Vivotek cameras. This new...
Beware African 50,000 IP Camera Contract Scam on Jul 12, 2019
A “Nigerian Prince” scam for the video surveillance market is going around. You, or at least we, could be lucky enough to be the single bidder for...
Axis ARTPEC-7 P1375-E Camera Tested on Jul 12, 2019
Axis claims the new P1375-E box camera with ARTPEC-7 chip delivers "clear, sharp images in any lighting condition." But how well does it do? 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