Avigilon Strong Growth Continues Q2 2013

Author: John Honovich, Published on Aug 08, 2013

Continuing to buck the trends of the broader surveillance market, Avigilon's revenue was up 61% year over year for Q2 2013. Here is the full financial report. [Bonus - at the end, we break down the revenue of Avigilon's recent acquisition of RedCloud.]

Here are a few details gleaned from Avigilon's Q2 call:

  • *** ************* **** ** *.*%, ***** ** * *********** *********** over **** **** *** *********** *** ***** ** ****** ************ companies (**** ** **** *** *******), ********** **** ******** ** not **** '******' ****** *****.
  • ****** ** *** ** *** *** ****** ** *** ********** regions ** **** **%. ** ****** **** ** ********'* ***** revenue ($** ******* *** *** *******), **** ***** ** ** indicator ** ********** ********* ** ********* ** * ****** ********* market. ** *** ***** ****, ******** **** ~**% ******* ** the **, ***** ***** ******** ** **** ******* *********** ******.
  • ***** ******* ********* * ****** **** **% ** **%, ***** puts **** ** **** **** **** ************ ********** *** ****** surveillance ********** (**** ** ****).
  • ***** *** ********* ******** **** ** **%, ***** **** ***** overall ****** ****, ***** ******************* ** *********.
  • ***** *&* ************ **** ** **** **%, * **** **** compared ** ********** ******** ** ************** ** *&*.
  • ****** *****: ******** ***** **** *** *** *** *** ****** statistics. ******** ***** * **% **** *** ** ****** ***** from *** ****** *** ***** ****** **** **** **** *** projects * **** **** ****. *******, **** **** ***** ** not *********.
  • ****** *** ** *** ~$*** *******, ** *** **** ****, more **** ***% ****** **** * **** ******.
  • ** ******** **** **** ***** ********-****“*** ****** ******” ******* ********* $*** **** **** ** **** **** *** ******* ** end **** ***** **** ******. ******* **** *** ****-**** ** not ********* ** ** ********** **** ****** ** ** ** * *** ******* *******. That ****, ***** *** * *** ** ******** ***** ******* **** *********.
  • ******** **** **** ** *** *** ************* *** *** ***** ************** **** *** *********** *** *** ***** ******* *** ********* or *** ******* - ******* ** *** * ********** ***** company - *** ***** ******* ** ******* **********.
  • *** ******* ******* ****** ****** ** *** ******* *** ******* European ******* ** ** ******* ***** **********.

********

****** ** *** *** ** ********'* ********** ** * ********** of ********'* ******* *** ******. *** *** ***** **** ** 2013, ********'* ******* *** **** ***** $* *******, ******* **** on * $* ******* ****** ****. ***** *** $** ******* price ****, ****'* ** ********* **** *+ ***** *******.

**** ****, ********'* *** ******* ** ************. ******** ** ******* buying **** *** ********* '*********' ** ********* *** ** *** security *******, ********** **** ****** ********* **** ****** ***** ****.

**** *** **********, *** ***** ******, ** **** ******** *** losing * ****** *********** ****** ** *****. ******** **** ******* double ******* ******* ** * ******** **% *** ****. ******* being * ***** ***, ******** *** ****** ************* ****** ** acquisition ** *** ******* *****. ***** ***** ********, ******** *** very **** **** **** ****.

****'* *** ******* **** *** ********* ****** ******** ********:

****: ***** *** ****** *** **** ** ******, *** **** to ****** ******** ** ***** ****** ********** *** *** ****.

Comments (13)

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

**** ********** *** ******* *** ** *** ************ ******** ** security ******** ** ****** *****.

*** ** ******** **** **** ********* **** ******* + ****/********* cameras ******* **** *********/*****/*******/*******?

*** **** ** **** ***** *** ** *** ***** ************ will ** **** ********** **** ********.

* ***'* *** **** *** **** ** ***** **** ********?

* ***** **** **** **** **** **** ********* ******, ** reflected ** *** ******* ** ***** *******.

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

** * **** ** ***** * **** "*** ******** ** So *********"? :)

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

  • ****** *** **** / **** / **** ******* ** * nice ************** *** ******** *****.
  • ****** * ********** ****** ******* ** * *** **** *** many ***********, ******* **** ** ***** **** ** *** ****, they ******** *** **** **** ** ******** ** **** (** Arecont ** ***** ** ****** **** **** *** ** ****** on *** ********).
  • ***** ** *** ** *** ******** ** * ****. ***** there *** * *** ** ***** ****, **** *** **** lower ******* ******* (****** *** *** ********* *** ********* *** primarily *** **** ** *** *****).
  • ***** ****** / ********* ******* ** ********** **** *** ******** and *** ********* **** (*********** ** ****** ****).
  • ******* ******* *** ***** ******.

***** & ******* ****** ****.

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

***, **** * *** **** ****** ***** ********, * ** super *** *******. **'* **** **** * *** ******** ****** that * ** ****** *** ******!

****** ***'** ******* **** * ****** **** *********** **'* **** to ******* ******** ** ****, *******, ***. * ***** ******** compares **** ** *****, **** **** ******* ****** *** * solid *******. ** ***** **** ******* ** **** **** **** good ******* ***** **** ** ** **** **** ** ********?

******** ****** *** ********** ** ******* ** *** ** *** solution ** * ******* **** ******, **** **** ***********, *** with ************* ******** *** ******** ** *** *** ****. ** using * *********** ** ************ ***** ****** ****** *** ** periods, ********** *********** "**** *******" ***. ******** ***** ** **** certain ************ *** ******* **** ** **** = ***** ***** cost ** ************. ***** ** **** **** *********** ****** ************ is **** ****** *******.

*** ******* ********* *** ******** ******* **** ** ******** ** a **** *** ******** *** ****** ** ** *********.

*** *** ***** ***** **** ******** ***** ** ******** "*** boy"

*********** **********: **** *** ***** ******** ***** * *** ** sense.

******** ****** **** **** * ******* ***-**-*** ******** **** ****** I **** **.

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

********: ** ***** ** ***** ******* **** **** **** - the ******** ******* ** ***** *** * ***'* *** *** Axis ***'* ** *** **** - **** **** ***** *** VMS *** ******** *** * ** **** **** *** ******* a ***** ****** ****** *** * **** ****** **** *** there.

**** * ***** ********** ** *** **** + *** ****** + ***** ****** ********* ******** - ******* ** ****** **** seem **** ***** ***** ******* ********** *** *********** ******** ** THE ***-**-*** ********.

--> ** ** *** "********** **** ***** ****** ******* *** available" ** *** "** **** ** ****** ***** **** *** technologies" ****** **** ***** **** *** ********** ** ******* *** end-users?

******* *** ********* ******* - ****** * ****** ********** ****** possibly ******* *** *** ******* ** ** ****? ***'* **** run *** ** **** *** ********? ** ***** **** **** of *** ******** *** ** *** * **** *********** ****** in *** ****** ** **** ****? **** *** ****** ***** of **** ****** * ***** *** **** ** ******** * positive - ** *** ***-**** **** *** **** ** ***** any **** (*.*. *****) ***** ********.

* ***** ******* ** ***** * *** ** ****. *** need ** **** ***********, ******* ********, ***. *** **** *** people *** *** ***** ****** ** ****** *** ******* * quality *******. **'* * ****** ******** ***********, ** *** *** all **** ***** **** ***** **** *** ** ***** *** face ******** **********. **** **** *** ****** **** * ***** of ******* **** ***** *** ************* *** ** **** *** of *** ****** *** ******** ***** *** *** *** ******** they ***** ****** ***** *************. ******** ** ***** *** *** with ***** ***** ******* ** **** ****** *** **** ***** isn't ***** **** ******* ****.

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

  • *** ***'*Axis ** *** ****? ** *** *** ****, it's clearly a fear of upsetting partners. Why doesn't ACS support ONVIF? Why do they sell AVHS through a crazy multi-tier dealer structure? Why doesn't Camera Companion support Axis one click? Axis certainly has the skill to rectify these problems, but they are clearly done not to upset existing partners.
  • ********* **** *** ****** (****, *********)not ***** * **** ******. I think they clearly made a mistake here. They typically justify that decision by pointing out technical limitations (poor low light sensitivity, super low frame rate, super inefficient bandwidth consumption, etc.). While those things are largely true, not having their own makes them appear to be technological laggards, especially to those you simply equate more megapixels with higher quality. And it's not as if Avigilon's 29MP cameras are some form of exotic technology that cannot be replicated. But Avigilon grasped the marketing benefits of such positioning while their rivals did not.
  • ***can ******** ***** **** * ********* *******? It's not a single integrator per territory. I don't what the max number is, and I suppose it varies with the density of the market (i.e., New York has more dealers than New Mexico). That said, I agree with you that a protected channel hits scalability limits. If Avigilon chooses to add more dealers in a region, than it increases competition, likely drives down prices and demotivates dealers. However, if they do not add dealers, they will certainly miss opportunities that are driven or won by non Avigilon integrators. I am not sure how it will all play out but it's a fascinating element.

"******** ****** *** ********** ** ******* ** *** ** *** solution ** * ******* **** ******, **** **** ***********, *** with ************* ******** *** ******** ** *** *** ****.

******* **** ******, **** *********** = ****** ****** ******** + lower *********** */*** *****. ***** ****** ** ** ***** *** to ******* **** '****'.

"..************* ******** *** ******** ** *** *** ****."

*** **** **** **** *********** *****, * ******-******-***, '*** ** actual *****' ** **** ******* ***** ***** ***** ******* ** dust ***** **** ** ****?

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

**** ** ********* ******* ***-**** ********* *********have ***** ******* that they wish to integrate with their security apparatus.

***** ***-**** ********* *** **** ** ******* *** ******* **** pay ***** ****** *********** ******* *** ********** ** *** ****-******* party **** *** **********, ******, *** ********* ** ******* ****** solutions **** ********* ******* *************** **************** **** *** ********* ********* systems.

******* ****, **** **** *** ******** **** ***** ****-** ******* that **** ******* ********* *** *** **** **** ***'* ****** they *****'** **** ********** *** ********* ***, *** ** ********** (if **** **** ******* ** *** *** ***** ********** - which **** *** ***)...

***** ** *** *** **** - *** ***** *** ********* levels ** ********* *****.

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

*** ******** ****** *****, ****** ******* ***** *** ******** ******* who ***** ********** *** ********* **** **** *****-******, ****** *********.

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

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

***** *** **** ** ***** *** *** *.*% ***** ****?

***********, *** ******* *** ****** ****** ** *** ****** ******* by ***** *******. ** **** **** ** *** $*,***,*** **** $71,244,000 (*** **. * ** ********'* ********* ******).

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