Avigilon CFO Out and Q1 2014 Financials Reviewed

Author: 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.

********'* ******* ********* **% **** **** ****, ******* ** ******* ******** rate ****** *** *** ********* ** ******* *******.

********'* *** ****** *** *** ******, *** *** ********* **** ** * months (**************,***************), ********** ***** *** * ***** ***** '****'.

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

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

*** *********** ******** ** **** *******, ***** ********, ******* ****** was ** *** ***** ** **% ** **%. **** ** still **** ******, ****** ******* ***** **** *** **** ****.

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

** ******** ********* ** ************** ******:

"******* ** *** ***** ******* **** ******** *** ****** ** a **** ******** ******. * ***** ******* ** *** ******* is *********** ** ** ******* (“***”), ******* ****** (“***”) ** Euros (“***”), ********* ** *** ******, ******** *** ******** ** the ** ****** ** *** **** ***********. ** ********* ** our **&* *** *** ****** ******* ** ****, ***** ** our ********* ******* *** ****, ***** $*.** ****** ** *** exchange **** ** ******** *******  (“***”) *** *** *** ** estimated $*.* ******* ****** ** *** ****** *** * $*.** million ****** ** ***
******."

**** **** ****, ***** *** * ******* * **** *****, as ***** ** ******* - *** ******** **** *****:

** ********'* *** ****** ** $*.** ******* ****** ** *** income **** ***** **** * ******* / **** ** $*.** million ******, ********* *** **** **** ******* **** ** ~$*.* million, ******* ******** ** ***** ********* *** ****** ** $*.** million *** ** ***** ********* ******* ** $**.* *******. [****: Adjusted *********** ******* **** ********* **** ******** ****** **** *********].

VideoIQ ******

******* ***** $*.** ******* *** *** ******* (*** ** ****** pace ** ~$** *******), ***** *** *** ******* / ********* for ** *** ********** ** **** *******.

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

******** ****** *** **** **** *** ****** ** $* ******* and **.*%. *******, ** ********* *****, ******** ***** ****** ******* most ** *** ********.

****, ********* ** ******** ***** ****** ** ********* ******* **** can **** ** ****** ***** *** ***** *** ** *** time, ** ***** (** ******) ***** **** ****** ** *********** *** underlying ******** ********.

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

***** ******** **** ****** ******* **** ** *** ******** ****, also reflecting ********* ** *** ***** **** *** ****** ******.

*******, ********* ******** **** ******** ******* ****, **** ******** **********:

"********* ******** ** *** ***** ******* ** **** **** $*.* million, ** **%, ***** **** ********* ******** ** *** **** period ** **** ****. **** ******** ** *** ****** ** a ********* ** ******* ********** ********* * ************ ** ********* priorities ********* *** ********** ** ********* ************** *** ********* ** the *** ** ****, ** **** ** *** ***** ** certain ******** ***** **** ************ *** ********. ** ********** **** these ******** **** ** ******* ** *** ****** ********, ******* in *** ****** ******* ** ****, ******* *** ******* ****** in ********* ******* ** **** ** *********** ** ** ***** than ** ****."

Avigilon *** ***

*** *** ****** ******** *******, ******** ********* **** ***** ***, **** ****** "** ** ****** **** *** *******." *** ******** *** (***** 2012) *** ******* ********, *** ****, **** ** ******* *** ***** * ********** *** **** a ********* ***********.

******** **** ******'* **** ** "** ********** **** * ******** health *****."

** *** **** * ******, ********** ** ****** ** **********, *******, ********* *** ***** ********* **** *** ****** ********.

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

********'* ***** ***** ***** **** *** ******* ***** *** *** exit ************ ('*******'), ***** ** *** ** -**%, ****** ****** *** *** **** -8.73%, ** ***** ** **** * *** ***** *****:

****** *** * ****** *** *** **** ** ~* ******* shares ******.

*** ************* ******* ****** ********, **** **:

  • *** ***** **** ******** **** ** ***** ****** *** ********* financial ******* **** ********?
  • ** ** ** ****, *** ** ** *** ****** ****** a ***** ** *******, ****** **** ***** '** ****** **** the *******'?
  • ** ***** * ******* ** ********** ******* ******** *** **** does **** *** ***** *** *******?

*** ********* ********* ******* ********* ******** ***** *** ****** * rebound. *******, ** ** ******* ******* *** *** **** ************ was ****** * ** ******* ** ** ****** ** **** significant ********** ********.

* ****** ** ******** ****** ******** **** **********, "***** ***** ** ** ****, *** ********* **** *****."

** *** *** ** *** ********'* ****, *** ******* ***** if ************* ** ****** **** ********** ********** ******** **** *** CFO's ****. ********'* *** **** **** *** ** ****** *** relation ** *** ** *** ***.

Employee ******

******** ***** *** *** ********* **** *** **** * ******, growing **** *** ** ***, ** ******** ** **%.

*** ** *** *** **** ******* ******** *********, ********** **% from ** ** *** ******. *******, **** ****** ******** *** added ******* *********.

Options ***** *****

********'* ***** ***** ****** ** ~$** ** ********. ** ** now ******* ** *** $** ** $** *****, ***** ******* for *** **** * ****** *** *** *** ***** *** CFO ************.

**** ** * ********* ****** *** ******* *** *********** ********* as * ****** ***** ***** ********* **** ***** ***** *** stock *******. *******, *** *** ***** ****, * *********** ****** of *** ******** ******** ******* *** *** ********** ** ************ by *** ***** *****:

******* *** ***** ***** ****** **** ** ** ********* *** only *** ********* *** ******** *********.

Termination ********

******** ******** $***,*** ** **** ******** ** ********** *** ********** *********. Though ** ******* **** ********, ***** ********** *** ******** ** Q1 ******* *** ********** ********* *** *** ** *********.

**** ***** ** *** **** ***** *** *********** ******** *** the ***, ********'* *** *** *** **** * ****** ****** either ***.

Conference **** *****

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

  • *** ********** **** **** *** ********** ** *** *** ******* *** with ** *** ******* ** **********.
  • ***** ********* ***** ** ***** ******* *** **** *******
  • *** ***$*** ******* ***********, ********** **** **** *** ********* ********* **** *********** ************* and **** **** ****** **** ** ************ **** ********* ** good *************.
  • "***** *** **** ** **********"
  • ******* ****** ***** ********* *******: ** ******** ***** ****, ********** executive ***** ****, ****** ********* ******** ***** ****
  • **** ****** ****** *** *** ******* '***'
  • ****** ******* ******* ***** *** '******* *** ******* ****' ***** after ***** *** ** **** ******** ******
  • ********** ***** **** *% ** ***** ** ** ****, ******** to **% ** ** ****, ********** **** **** ***** *** 'lumpy'
  • "******** *** ***** **** ** ****** ... ** *** ******* of *** *******"
  • ********* ****** ******* ******* - *** *** ********* ********** *******
  • ** - ** ***** ****** ** ********* *** *** *** system, implication **** ** ** *** * ****
  • ****** ******* **** ** * *** **** ******** ******* **** no *********** ***
  • **** '** ***** *******' ** **** ***** '**** ***** ***** cost ** *********'

Comments (12)

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

*** *** **** ****** ****** ***** **** ***** *** ******* and **** ***** **** ***** *****. ****** *** **********.

*******, ********** ** ************ ************* **************** * **** ******* / ******** ** **** ************* **** readers *** **** ********** ** ********. ******** ** #*, ****** only ****.

***********, **** **** ******* *** ******** *** **** **** ******* for **** ** **** **** **** ****. **** *** **** this *** ** *** ******* ******* *** *** ***** ***** average. **** ******* ** ** **** ***** ** ******* **** and *** **** *** ***** *** **** ** ******. **** helps ** * *** **** ******** *** ******* **** ** press **** **** ***** *** ****** ***** **** **** * good *******.

***** ******* *** ******* *** **** **** *** *** ****** about *** ******** ** *** **** *** ** ******* *** the **** ** ***.

*** ********* ** **** *** ********** ***** ** *********** ** many ******

**** **** **** *** ********* **** ** *** ****** ** they *** *** *** *** **** *** *** ****** **** simply ***** *** **** ** **** *** ******..... **** ****** like **** **** ***** ** ** *** *** "****" ** the ******** *** **** *** **** ***** ** **** ** hard ** *******......

**** *** ***** **** *** ***.

**** **** ***.

*********** * ************,

** ** **********, * **** * ***** **** ***** *** financial ****** *** ********** ** *** ************* ** *** ********. We **** ** *************, ***** **** **** ****** ******* *** company, ** ************ ***** *** *********. * **** ** **** that *** ******** ** ******* *** ***** ** * ***** companies **** **** ** ****** ******** *** ***** *** ******** philosophies *** ******. **** * ****** *************, ************, ** *** other ****** **** *** * **** ** *** ******* ** service *** *********, * ******* **** ***** ***** ******* **** their ********. ** *** ** * ***** ****** ** *** security ********; ***** *** **** ***** ******** **** ***** ** choose. *******, ***** *** **** *********** ** *** ********* **** make ***** ********. *** *********** ** **** **** ****, ***** with ***** ******** ******** *** ****** *********** ** *******, **** into *** ********* ** ************ ********. * **** ***** ***** in **** **** *********.

** ** ******,

******** *** **** *** ** *** **** *********** ************* ** the ******** ********. **** ******* ***** ******* **** *** ***** distribution, **** ******* * ******** ****** ****** ** ********, **** acquired ******* ********* ********* ** * **** ***** **** *** have ***** ** **** **** **** *******. ****** **** **** the ***** ****** ** **** *** ********* *** ** ***** an *********** ***** ** ******.

*********.

** *** *** ******** ** ********'* ********** ****? ** ** that's ********** * **-**, ** ** ********* * ******** ************ over *** ** **** ** ******* ** *** **********. *** fact **** ***** ** ** *********** ***** *** ** ********* LOA */ ****, ****** ******* ** ****** *****. *** ******* is *** ********* ****** *** ******** '** ********** **** * personal ****** *****', ***** ** ****** * ********** *********** **** statement ** *** **** ****** ** * ******** ********** ***.

***********, ********** ****** ******* ***** ** ******* ***** ** *** market. **** ** *** ******** ** ********, *** ****** ******* with ****** ****** ***** ** ******** ** *** ****** ** they **** ********* ******* ****.

***, *** ********'* **** ********* ** ****** ** *** *** and *** ***, *** ******* ******* *** ******* *** ****** questions.

**** ***** *** **** ************ **** *** ********** ** *** concern / ********** ***** ******. *******, ** ***** ** *** abrupt ***** *** ********** ** * ****** *****, ******, ** ********* ********* ***** before *** ********** **** ******** ********* ********* *** ***** ** concern...

*** ***** ****** * *** **** ********* / *************** *** *** *** ***** / ******* / ********* ** them, ** *** *** ** ***** ***** ***** ******* ************* increased *** ***** ** *****.

******** *** ***** ** ********* ********'* ******* ** *** ******** separation, ** ***** **** ***** *** **** '*********' ****** **** departures **** ***** ** ****** ********* *********** ********** *** ******* of ********** **** *** ***** ****** ** ******. ***** ******* to *** ********** ************** *********** ********* ********** ****** ******* ******...

** ** ***** ****... **** * *** * *** *** lost *** * ** *** ***** ******* **** *** ****** of *** * **** ******.....

***** **** **** **** ** *** ** *** *** *** heat ****** **** **** ** ***** ** ***.... ***.........

(**** *****. **** *** ************ **** *** **** *** ***** earlier.. *** *** **** *** *......)

"** ***** * ****** **** **** *********.....,." **** ******** ***** has ********* **********. ** ** *******, *** **** **** **** question *** **** ****** ****** ** ********* "*****" ****** *** walls ** ********!! ** *** *** ** *** *** *** do ***** ***** * *******? ** ** **** ** ************? Or ** ** ******* **** *** *** *** ***** ******** makers **** ***** ********* ******** ****** ****** ****? * ***** leave ***, ** ******, ***** *** ***** ** '***** *****' or *** ****. *** ** ******* *** *****? *** ***? Hardly.....there *** ************ *** ** ** ** ***** **** ** under ********* ****** ***** ** ***** **** *** ** ** alone *** ********** ***** *** *** ***** ** ** **! Don't ****** **** ******* ***** *** ****** ** *** ******. Have ********** ** **** **** .

** *** ***** ***** ***! *. *. ** ****** *. F.'s ******? ;)

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