Avigilon Announces Solid Financials to End 2015

By: John Honovich, Published on Mar 01, 2016

2015 was brutal for Avigilon.

Most of the management team was ousted or quit, culminated by the 'retirement' of their leader / COO. The stock price, sales growth and profits all declined.

But the end of 2015 provides hope for Avigilon. In this note, we examine Avigilon's 2015 year end financials, looking at the strengths and weaknesses of the results.

**** *** ****** *** Avigilon.

**** ** *** ********** team *** ****** ** quit, ********** ** ***'**********' ** ***** ****** / ***. *** ***** *****, sales ****** *** ******* all ********.

*** *** *** ** 2015 ******** **** *** Avigilon. ** **** ****, we ******* ********'* **** year *** **********, ******* at *** ********* *** weaknesses ** *** *******.

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

Sales **** ******** ********* *************

*********, **** ***** **** turnover ******** ******* ******** as ** ******** *****. While ******** *** *** return ** ***** *** huge *******, ******* *** they **********.

Solid ******* ******

*******'* ** **** ******* growth, ** ******** ********, was **%.

***** *** ******* *************** and ***** *********** ******* for * - **% growth (*.*.,****) *** ********'* ********** issues, ~**% *** ******** is ****.

Profits ******** ** *******

** *** ******** ****, profits ******** ** *******. Net ******* *** ** 2015 **** ~*%, ******* down **** **** **** 10%+ ******* **** ******. The ************ ** *** ~$100 ******* ******* ******* this ** **** ** heavy ******** ********* ** the ***** ************.

$500M **** ** **** ** ************

**** ******** **** ******, they *** * **** for $*** ******* ** 2016. ********, *** ******** goal *** $*** ******* for *** **** *** later **** ******* ** to '*** ****', *.*., a ****** ******* ** $125 ******* ***, ***** they ****** **** *** in ** **** (***** Q4 **** ******* *** $109 ******* ***).

*******, ******** *** ********* dramatically **** *** ********* of *** ******** ****** during *** *******. **** is *** **** ***** quarter *** *** ******* growth ** ** **** higher **** *** ******* revenue (*.*., **** ******* net ******* *** +**%, but ******** ******** *** ~20%). ******* ******** ********, they ***** *** *** this ******.

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

******** ** ****, ******** will ** ********* ** USD, ****** **** ***. For *******, **** ******* was ~$*** ******* ***, which ** ~$*** ******* USD. ** ********, * few ***** ***, *** ratio *** ~*:*.

2016 ********** - ~$*** ******* *** *******

*** *** ***** ****, Avigilon ** ****** **** year ****** ******** **** a ****** ******* ** $335 ** $*** *******. This ***** ***** * growth ****, ** *** of **-**%, ***** ***** be *****, ***** *** market **********. [****: ******* version ****** ~**%]

Sales ******** ******** ********** ******

******** *** *** *** back ** **** ***** expenses, **** ***** *** marketing ***** ********** ****** than *******, ********** **% in **. ** ***** anticipate **** ******** ***** start ******* ***** ** the ****** ** ********** tough *** ********* **** to ** ********* **** short **** *******.

Inventories **** **** ******

*** ********** ****** ** that *********** **** **** doubled **** ~$** ******* to ~$** *******. ** is *** ***** ** us *** *** ** might ** *** ** the *** ********** ******** in ***** *** **** was *** ** ********. We **** ****** ** we **** **** ******* here.

Investor ****

*** ********* ** * recap ** *** ******** call:

  • ******** *** ******* **** ********* on *** **** - 'future ** *** ********', 'resurgence ** ***** *********'
  • $* ******* *** ********** revenue ****** *** ** 2015
  • ****** ******* ********* ** 'really **** **' ****, licensing ******* '****** ********', already ******** ****** ** companies '************' *** *** early ****** ******* ****
  • ******** ***** **** *** undervalued ************** *** ****** ****** **** **** **** have **** ** *** the **** ***** ** someone ***** ** ******** them.
  • ***-*** ****** ******* ** new ** *******
  • ******* ****** ********* *** ***** ***** Asian ************* ******, ******** *** ****** that **** ** ***** valuation *********** ** ***** end ** ***.
  • ******* ******* ** **** on **** (****** ** say **** *** ******* it *** ******** ** us *** *** ******** about ********* ********** *** growth). ******** *** ********* that ** "***** *** websites **** *** ***** in **** *** *****". 

Industry ******* **** *******

********, ****** ***, *** estimates ****** ****** ******** growth **** ** ~*%, down **** **** ****'* estimate ** **%. **** does *** ******** ** given *** ******** ****** the ******** *****, ****** Avigilon ********** **** ************ in ***** ***** **********, also *** **********. *********** **** ******** *** / *** ***********.

Outlook ******** *** ****

**********, ** ** **** where ******** ** ***** it **** **** ***** the *** ** **** to *** *** ********** settles / ****** ***. However, **** ** * solid **** ** ***. We ***** ** ** unlikely **** **** **** significantly ********** **** **** pace ***, ***** *** industry's ******* *********, ** they *** ********* ****** this *****, ******** *** go ******* ** * moderately ******** ************, ** not *** ***** ****** they **** ***** ** be.

Comments (4)

Also, Avigilon's CEO continues:

"I mean it's a fact, there is over US$20 billion spent per year today and that's growing a significant amount per year, more than US$1 billion a year of new business."

So that's a 5% growth rate, which sounds roughly right. The fact that industry growth is slowing overall is no knock against Avigilon. But it is much a smaller tailwind for all companies, including Avigilon, than in year's past when the growth rate was integer multiples higher than that.

Investors are positive about the news:

Though still down more than 50% from the highs of 2 years ago:

I like all websites and commentary that are based in fact and truth and are balanced.

Obviously no one ever told him about IPVM! Not anymore.

Invite sent.

An undisclosed source pointed out that trade receivables were up sharply, far higher than revenue growth. This can be a sign of risk.

Excerpt from report:

Notice that past due accounts tripled year over year, from ~$4 million to ~$12 million. This is worth tracking this year to see if this reverts back to lower levels or continues to outgrow revenue.

If it is the later and growing the risks included, "customers are taking longer to pay their bills, which may be a warning that customers are dissatisfied with the company's product or service, or that sales are being made to customers that are less credit-worthy, or that salespeople have to offer longer payment terms in order to generate sales."

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

US Government Ban of Dahua, Hikvision, Huawei Takes Effect Now on Aug 13, 2019
The 'prohibition on use or procurement' of Dahua, Hikvision and Huawei products and 'essential components' take effect today, August 13, 2019, one...
Proactive CCTV "Only Affordable Video Archiving Solution" Profile on Aug 12, 2019
Proactive CCTV is claiming to offer "the only affordable video archiving solution on the market", reducing the storage typically required for H.265...
Stanley Makes "Multi-Million Dollar Investment" Into Banned Hikvision Products on Aug 09, 2019
Just days from the US government ban going into effect, US mega-corporation Stanley has dramatically increased its imports of banned Hikvision...
Vivotek Revenue Soars on Aug 05, 2019
Vivotek's revenue has soared so far in 2019, growing 45%. Inside this note, we examine import records and see who is driving Vivotek's growth...
Online Video Surveillance Sales Comparison - Amazon, B&H, CDW, LTS, Super Circuits, More on Jul 31, 2019
IPVM has uncovered the key trends and top options being offered across commonly used surveillance sellers. How has the market shifted since we...
Ionodes Company Profile on Jul 31, 2019
What happened to Ionodes? With seasoned leadership from Jean-Paul Saindon founder of SmartSight and Dr. Michael Gilge, founder of VCS, back in...
Fujifilm Expanding Into Video Surveillance on Jul 26, 2019
While Sony continues to fade out of the video surveillance market and Canon continues to make huge investments into acquiring video surveillance...
Australia Security Full Show Report on Jul 25, 2019
IPVM went to Australia attending the 3 days of the Australia Security Exhibition: This was held at the ICC Sydney, as shown below: In this...
How To Quickly Research An Unknown Company on Jul 23, 2019
There are hundreds of companies in the physical security markets, ranging from a flood of new startups to small companies that may or may not be...
History of Video Surveillance on Jul 19, 2019
The video surveillance market has changed significantly since 2000, going from VCRs to ab emerging AI cloud era.  The goal of this history is to...

Most Recent Industry Reports

China Dahua Replaces Their Software With US Pepper on Aug 22, 2019
What does a US government banned company do to improve its security positioning in the US? Well, Dahua is unveiling a novel solution, partnering...
Security Integrators Outlook On Remaining Integrators In 2025 on Aug 22, 2019
The industry has changed substantially in the last decade, with the rise of IP cameras and the race to the bottom. Indeed, more changes may be...
First GDPR Facial Recognition Fine For Sweden School on Aug 22, 2019
A school in Sweden has been fined $20,000 for using facial recognition to keep attendance in what is Sweden's first GDPR fine. Notably, the fine is...
Anyvision Facial Recognition Tested on Aug 21, 2019
Anyvision is aiming for $1 billion in revenue by 2022, backed by $74 million in funding. But does their performance live up to the hype they have...
Dahua 4K Camera Shootout on Aug 20, 2019
Dahua's new Pro Series 4K N85CL5Z claims to "deliver superior images in all lighting and environmental conditions", but how does this compare to...
ZK Teco Atlas Access Control Tested on Aug 20, 2019
Who needs access specialists? China-based ZKTeco claims its newest access panel 'makes it very easy for anyone to learn and install access control...
Uniview Beats Intel In Trademark Lawsuit on Aug 19, 2019
Uniview has won a long-running trademark lawsuit brought by Intel, with Beijing's highest court reversing an earlier Intel win, centered on...
Suprema Biometric Mass Leak Examined on Aug 19, 2019
While Suprema is rarely discussed even within the physical security market, the South Korean biometrics manufacturer made global news this past...
Verkada People And Face Analytics Tested on Aug 16, 2019
This week, Verkada released "People Analytics", including face analytics that they describe is a "game-changing feature" that "pushes the...

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