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 *** * ******.

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

Ban of Dahua and Hikvision is Now US Gov Law on Aug 13, 2018
The US President has signed the 2019 NDAA into law, banning the use of Dahua and Hikvision (and their OEMs) for the US government, for US...
Dahua Ban Response: NOT Chinese Government Owned on Aug 08, 2018
Dahua has responded to the US Congress passing a US government ban on Dahua and Hikvision's products. While Dahua offered the now standard...
Hikvision PanoVu Mini Tested (Multi-imager + PTZ For ~$500) on Aug 07, 2018
Hikvision has released their first PanoVu Mini multi imager, the PanoVu DS-2PT3326IZ-DE3, with four 1080p imagers, including a PTZ and integrated...
US Government Puts Export Control On Hikvision's Chinese Government Parent on Aug 07, 2018
Chinese media and the Chinese stock market have not only been concerned about the NDAA bill banning Hikvision for US government use. Additionally,...
Hikvision Admits Ban To Become Law on Aug 03, 2018
Hikvision has admitted they expect the US government ban to become law as soon as this month. In a new 'Special Bulletin' to dealers, Hikvision...
US Congress Passes Bill Banning Dahua and Hikvision on Aug 02, 2018
The bill banning US government use of Dahua and Hikvision products has been passed by both chambers of Congress (House vote, Senate vote). The US...
Dahua NA Consolidates Rep Firms Led By Ex-FLIR Team on Aug 01, 2018
When Dahua acquired Lorex / FLIR SMB, Dahua NA had 11 manufacturer rep firms and FLIR had another 6. Now, Dahua NA, led by the ex-FLIR team, has...
Wave Retorts: SDS 'Desperate' And 'Defeated' on Aug 01, 2018
Distributor SDS has sued Nortek and distributor Wave Electronics alleging bribery, conspiracy, antitrust violations and violations of state laws...
Hikvision NA President Jeffrey He 'Promoted' / Removed on Aug 01, 2018
With an impending US government ban of their products, financial struggles and increasing scrutiny of Hikvision human rights abuse, Hikvision has...
Security Sales Course January 2019 on Jul 31, 2018
The next IPVM Security Sales Course will be held in January 2019. Register now and save $50. This sales course is customized for the needs and...

Most Recent Industry Reports

Cut Milestone Licensing Costs 80% By Using Hikvision and Dahua NVRs (Tested) on Aug 13, 2018
Enterprise VMS licensing can be quite expensive, with $200 or more per channel common, meaning a 100 camera system can cost $20,000 in VMS...
Nortek Sues SDS, Battle Over Unpaid Bill and Cancelled Lines on Aug 13, 2018
Nortek and SDS legal battle continues. As IPVM reported, SDS sued Nortek alleging bribery and antitrust violation. However, Wave fired back at SDS,...
Uniview Intrusion Analytics and VMD Tested on Aug 13, 2018
IPVM's IP Camera Analytics Shootout featuring Avigilon, Axis, Bosch, Dahua, Hanwha, Hikvision created some ill will with a Uniview distributor who...
ADT Employees Protest ADT CEO on Aug 10, 2018
So many ADT employees were so upset with ADT's CEO speech reported on by IPVM, that ADT's CEO was forced to send a mass email to employees to...
Axis / Avigilon Legal Battle Rises on Aug 09, 2018
In what is shaping up to be high-powered, will-not-back-down battle, Axis and Avigilon are squaring off in multiple legal contests. In 2017, IPVM...
Camera Focusing Tutorial on Aug 09, 2018
A camera's focus is fundamental to quality imaging. Mistakes can cause important problems. In this guide, we explain focus issues and proper...
Dahua Ban Response: NOT Chinese Government Owned on Aug 08, 2018
Dahua has responded to the US Congress passing a US government ban on Dahua and Hikvision's products. While Dahua offered the now standard...
Bad Move: ADT Markets Rival Amazon on Aug 08, 2018
Amazon may be lining up ADT as its next victim but ADT is happy to promote Amazon. Amazon has made major moves recently, including acquiring...
Hikvision PanoVu Mini Tested (Multi-imager + PTZ For ~$500) on Aug 07, 2018
Hikvision has released their first PanoVu Mini multi imager, the PanoVu DS-2PT3326IZ-DE3, with four 1080p imagers, including a PTZ and integrated...

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