Avigilon Shifts Strategy To Maximizing Profitability (Q4 2016 Results)

Author: Brian Karas, Published on Mar 01, 2017

Avigilon had previously been known for big spending, hiring a large sales force and throwing lavish partner parties at tradeshows like ISC West. Now, the company says they are going to focus on profitability first.

In this report we analyze Avigilon's Q4 2016 financial results, and statements from the CEO on the future of their business.

******** *** ********** **** ***** *** *** ********, ****** * large ***** ***** *** ******** ****** ******* ******* ** ********** like *** ****. ***, *** ******* **** **** *** ***** to ***** ** ************* *****.

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

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

Revenue ** **%

********'* ** ******* *** ** **% ******** ** ** ****, with $**** *** ***** *******. *** ****** **** **** *%, to $*.**, ******** ** **** ** **** ***** *******, **% in ** **** **. **% ** ** **** ** **** as ********* ************ / ************.

Stock **

*** ***** *** ** ******** ** ******** ** **** ****, ~7%.

*******, ***** ***** ******** ******, ** $* *** *****, **** than * ****** ***, ***** ***** *** *** ******* ** $16 *** *****, ******* *********** ******** ******** ***** * *****-**** fall **** *** *** **** **** ** $**.

[******: *** ** *** *** ***** *** *******, ***** ******** at **.**, ** *.**% *** **** **** *** ***'* ****** start.]

Shift ** ********** ******

** *** ******** ****, **** ********* ****** **** *** ******* *** ******** *** philosophy ** ***** ** ************* **** ******:

** *** ***** ** ****** ****, *** *** **** ***** forward ** ******* ********** ************* **** ****** ** ******* ** maximum ****** **** ******.

******:

*** *** **** **'** ****-*********** *** **'** ********** ** ** believe ** **'** *** ******* **** **** ** *** ******** today *** *** ***** ***** ********* *******, **plan ** **** **** ** **** ****** ***. [emphasis added]

**** ** * ******* ***** *** *** *******, ** **** had ********** **** ***** *** ******** ******* ** ******** ***** market ********, ********* ******* * ***** ***** **** *** *** resources ** ******* *********** **** ********* ** **** ******* ******* their *******.

R&D *******, *****/*********, *&* ****

******** ** ***** ********* ** *&*, *** *** ******* *** costs ** ***** ***** ***********. *&* ******** *** ** **%, while ***** *** ********* *** *&* ******** **** *********** ****, year **** **** *** **.

US ******* **** ************

***** ******* *** *** ** *** ** **% ** * YoY *****, ** *** **** ~*% **** ** ****. **** is **********, ** *** ** *** ************* **** ********'* ******* region, *** *** ********** ***** ********** ******* **** ******* ****** as **** ** **** **** **** ******.

Asia ******* ** **%

*** **** ******* ******, ***** *** **** ********* *******-****-******* *** year *** * **** ******* *****, ** **% ** $*.**. No ************ **** ***** *** **** *********** ****.

Analytics ********* ***** *** ********

******** ********* ** **** ***** ********* ******* ** * *********** to *******, *** **** *** ***** ** *** ** *** financials. **** ********* ****** *** ******* ******* "******* ******* **** **** *** *** *******", ********* ** ** software, ********, *** ***********. **** ********* ** ******* ********** **** Avigilon **** *** ****** ** **** ********* ** ********* *******.

** *** ********** ********* *******, ******** ***** ** **** ********* to ******** ********* ***** **********, *** ******* *** *** ** US ******* ***** ** *** ** ** ******* ***** ****** license **** ** ** **** ************ ******* ** *******, *** would **** *** ******* ***** *** ** ******* **** ********. Similarly, *** **** ******* ******'* ******** ***** ** *** ** a ********* **** ** *****-** *******, *** *** *** ******** that ******** *** ***** **** ******** ** **** ******.

Headcount ****

******** *** ************* *********** *** ******* ****** ** *** ******* in ***** ** **** ******* *** *********, ******* **** ************ that ***** ********* ******** ********* ******* ** **** *** ** 2016. ** *** ***** ** * "***** *********", *** *** not ******* ***** *********** **** ********.

Receivables ** *************

*********** *********** ** *** ******** (>** ****) *** ***** ** high ******** ** *** *** ** ** ****. **** ******** in *********** ** ******** ** ******* *********, *** **** ** usually ********* ** ******* *********** (******** *** **** ***, *** not *** **** **** *** ********** **** ********). * *********** uptick ** *** *********** *** ******** *** ******* ** ****** problems ********** **** *******, ***** *** ****** ***** ******** **********, which ***** **** ****** ****** *******.

Fierce ******* ***********

********'* *** ************ *** **** ** *** ****** ******, ******* he ******* "****** ******* ***********" ********** ****. ** ******* ** *******, ** said "** **** ** ***** ** **** ****** ** ** ******** radical", *** *** **** ***** ****** ***** ************* * ****** ******** ** ****** ****** ** ******* ** price.

H3 ******* ***** ******

** ******* **** ****** ** **** ****** **** **** **** volume, *** **** ***** **** ** ***** ** *********** ****. While **** ** **** *** ******* ******, ** **** ******** that * ***** ****** ** ********* ***** ****** *****-**** ******* over ******-****** ** ******** **** *********. ******** ************ **** ** a ******* ******, ********** **** **** **** *** ** ******** until **** *** ******* ** **** * ***** **** ** low-cost *******.

Future ********

******** **** **% ******* ****** ******** *** **** **** ****** revenue ******* $**** *** $**** *** ****, *** **** ******* profits ******* ********** ********* ** *****. ***** ********** ******** **** while ******** ******* ** ******** ***** ******, ** **** ** at * **** ******* **** **** ******** *****.

*******

***** *** ****** ********* ****** ** *** **** * *****, the ****** ******** **** ******* ** * ******* **** *** Avigilon. **** ******* ** ** **** ** ** *** **** is ** ******** *** **** ** ** ** ** ******** is ********* ****** *** ** ***********, ***** *********** ** ************* **** ********* ** *** **** * ******. ***** **** *** ******** ***** ** * *********** ***** to *** ***** / ******* ** ** *********** ** ********.

Comments (4)

****** **** *** ***** ** *** *** ****** *** *** the *** *** **** ****** **** ****** ** * ****** if **** ****** ****** ** *** ********.

********'* *** *********** ******** *** ***** ** * ** ********* that ** **** ** ******* / * ****** **** ****** unless ****** *** *** ***** (*** ***** *** **** *** on * ****, ****** **** * *** *****).

*** *** **** *** *****, ******** **** **** *********** ***** the **** ** ****** ********** ** * ******* **** **** is ** ******** ** ****, *.*., **** *** ********* ***** with **** *******, *** ******** **** * ****** *********.

*** * ** ***** **** ********'* ***'* ******** ****. **** are ****** ****** ** **** ***** *** *** ****** **** only ***** ** **** ******* ******, ** **** ***** ** well **** *******.

*** ******. *** ***** ** *** *** **** $$ *** his ****** ** ********. ***** *** ******, ***.

*****, *** *** **** ** ***** *** *******:*** $*** - **** ******* **** ** ******** ****?:)

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

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