Avigilon Weak Profits Continue - Q2 2015

Author: John Honovich, Published on Aug 03, 2015

After spending $39 million buying back their own stock, one would think (or hope) Avigilon would report great earnings.

Alas, no.

Avigilon's weak profits continue along with lower growth, fostering concerns about the company's long-term prospects and pulling the stock down more.

In this note, we review Avigilon's Q2 2015 financials, examining growth trends, earnings challenges, the Avigilon CFO ambush, the patent monetization push, and industry trends impacting them. 

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Earnings ******** / **** ********

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Commoditization ********

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Industry ********

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Avigilon *** ********

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****** *** ********* ******, ***** ***** ** ****** ******** ******** confidence ** *** ******* (*******, ******** '************ **********' / '*************' ***).

Wearing ****

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*** ** *** ******* ********* ** ******** *** **** ***** ability ** '*** ****', *** ** ***** **** **** **** was ******** **** ********* ******* ** **** ********. *** *** the **** *** ******* ****** *** ****** **** ** *** face ** ********** ******** **** **** ****** **** *********.

*** ******* *** **** **** *** ****** ********* ** **** can **** **** *****, *** *** ***** *** ********.

Comments (6)

******* ******* **** ***** *** ****** ** **** *** * strategy ** *******, **'* ** ******** *** *** ** ******* for ***** *** ******* *** *** *** **** *** *******. When *** **** ***** *** *****'* *** **** ** *** of * ******* ** ***** ** *** *** ** *** tunnel **'* **** ** ******** **. ***'* **** ***? *** it! ***** **** * **** ****** ***** **** **** ** generate *******.

**** * ***** ** ****! * *** ***********.

***** **** *. *** ** ****** ** *** **** ******, disappointing '*** *****'. **** ***** ******* *** ***** ***** **** the ****, ** **** ** *** **-******** *****.

****** *** ***** ******* ******** ** ******* *** ******** ***'* be ******** ** *** ********* '***** ***** ******* ****', *** admirably ***** ******** ******* *** ********* *** ******* ******* ** ramping/lawyering **. * ****** ** **** *** ***********...

* **** ** ****** ******** **** ****. **** ******* *** very ********** *********. * ******* *** ***** ******* **** **** but ******* *** *** **** *** ** *** ***, *** bought, *** *** *** ...*** **** *****/*****'*.

*** ************ ******** ********/**** **** ********** *** ********** ***** ****, the ******** **/****** '*****' *****, *** *** ****. ** *** seems * ***...

*****://**.*********.***/****/***********************

'*** ****** ** ********* ***** ** ******** ******* ** "******'* Last *****." ****** *** *** *** **** ******** ** ********** at *** ****** ******* **** ** *** ************ *** ** his ***** ************'

* ******* **** ***** *** *** *** *** ** *** ...maple ***** ** ******

"******* *** *** **** *** ** *** ***, *** ******, and *** *** ...*** **** *****/*****'*."

**** **** ** **** **** *********, ******** ** ********** ****** to ** ********.*******, *** ***** ***** **** **** ** ** ** ***** to***** / **********. *******, ******** *** ******** ******* ** ****** / **** about ******** * ******* ** *******.

** ******, **** *** **** ******** **** ****, *** ******* is ******* ******* **** *** *** *****. ** *** ********* of **** ****, **** *** * *** ** ******** *** double *** ****** *********, ***** ***** **** **** * **** a *** ******. ***, *** ** ****...

*******, *** ***** ***** **** **** ** ** ** ***** to***** / **********.

**********, ***** **** *** ** ***-**-*** ***** ********, **** ***'* appeal ** **** ** ******* ********* *****...

******* *** ******* ** * ***** ****** ** *** ************ might *** **** ** *** *** ********* **** ******* ****, as **** ** *** *********** ********* **** ***** **** ***** with **.

** ***** **** ***** *** *** ******/*********/*****/****** ***** *** **** for *** *****, ****** *** ********* ****.

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

****, *** ****** ***** ** ********* **** * *** **** cash ** **** *** ********** ** *** **** **********. ***, will ******, *********, *****, ***. *** ******** ** *** ************ mnufacturer? ******** *** *** ******** **** ***** *** ******* *** wants ** **** * ****** ****** **** ***** *** *** Axis.

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