Axis Bad Financial Results (Q1 2015)

Author: John Honovich, Published on Apr 20, 2015

In their first financials after Canon has agreed to purchase Axis at a massive premium, Axis delivers more bad results.

Inside this note, we break down the results, and what this shows about their future, challenges and the overall state of the video surveillance market.

** ***** ***** ********** ***** ***** *** ****** ** ******** Axis ** * ******* *******, **** ******** **** *** *******.

****** **** ****, ** ***** **** *** *******, *** **** this ***** ***** ***** ******, ********** *** *** ******* ***** of *** ***** ************ ******.

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

Results ********

*** **** *** ******** **** **** *** *** ****, **** growth ** ***** ********** ** *% *** **** ** *** ** 2014.

***,**** *** **** *% ******** ***** ********** *** ** ****, *** ******* ** **** we *** ****** **** *****.

******* ****, **** ********* ** *** ***** "**** ** *** current ****** ****** **** ******* *********," ***** ** ****** ******** they ***** ** ** - **%, * ****** **** *** obviously *** ****.

*** *** *****-**** ******* *** **** *** **** ******** ******* currency *******, ******* *% ****** ** ***** ********** **** **% increase ** *** *****. ***** ******* *** *** ******* **** decent, ** **.*% *** **.*% ************, *******, ***** **** ************* helped ** ******** ******* ******** ******.

Americas ********** ***

*** ************, *% ****** ******* ********** ****** *** *****. ********** speaking, *** ******** *** *** ***** **** ** ****** ** all. **** *********** *** **** "***** **** ******** ** * weak *********** ** ***** ******* *** *********** ******** ****** ** Mexico *** ******." ***********, ** ******* **** *** **, ****' largest ********** *******, *** ******.

********, **** **** **** *% ** **** *** ** ****. The *** **** ****** ** ********** *** ***** **** *** volume ***** *** *** ***** ******'* ****** ******.

Causes - ******** ** *** *** ***

**** ***** * *** ******* - "********* ************* ********* ** several ** ****’ *******", "*** ********* ****** ** ****** ************", and "**** ** *** **** ********** **** ** ********". *******, though *** ************* *********** ******** ** ***** *****. *** *** inventory ****** ******** ** **** ** ** ****** **** * red ****. 

** ******* *** **** ****** ******* **** **** ** **** they *** ***** ********* ** *** *** *** / ***** sensitive ***** ** *** ****** (********* **** *** ******* ***** in *** ************* ******* *** ****** ******). ***** **** ***** * *** ***** "***** *** ****** sized *************", ** *** ******* **** ***** ********* (*** *** releases) *** ************** ******** ** *** **** ***. ** ***** 1st (*/**** ******* *** *******),**** *** ******** ***** *** ******. ***** **** **** **** ********, *** price *** ** *** *** *** (***** ***** ******** *** not ********) ** ***** *** ***** ** **** ****** ***** losses. *****,******* *** ****** ** **** ***** *** **** ****, ******* ******* ***** ********.

Axis **** *** ***** **** ** *** *** ***

**** ***** *******, ** ** ***** **** **** ** ******** not ** ***** ********* / ***** / ******* / ** al. *** *** $*** ** ****** ******. ***** ** *****, Axis ***** **** ** ********* *** *** ******* ** *** budget ****** ** *** *** ***** *** ****** ** ******* there.

*** ******* ** **** ** ***** ****** ** *** *******, both **** ***** *** ***** *** ********** *** ****** ****** or ***** *** *** ********* **** ** *** $*** ***** who **** *** ******* **** ****** *** *** ******* ** be *** *** ******* ******.

Axis ************* ** *** **********

*** **** **** *** **** ** **** **** *** ********* a *** ** *** ******** *** **** ** **** *** innovative (*** ** ****, *** ******* ********* ****, *** **** panoramic ******, *** ***** **** ***** / ****** ******* *****, etc.).

*** ******* *** **** ** **** *** ***** ** **** they ****, ***** *** **** ******** $*** ** ******* ****. Given ***** ****, ** ** **** ** **** ******* $*** million *** **** (** **-**%) ******* ** ***** *** ******* resistant *******.

*** **** **** ***** **** * **** ********** ********** ***********, ***** ******* ******** *** ******* *******. *******, ** ** not ***** *** **** ** **** **** ****** ** *****.

**** * ******* / ********** **********, ******* **** ** *** going **** *** **** ****** *, ** *** ***, *** choice *** ****-*** *******. *** ***** ** ****** *** **** of *** ***** ** ***-****** **** **** ******** ** ****.

It's *****'* **** ***

*** ***** *********** '*****' ** ****** **** **** * ********* now.

**** *** *** **** ******* * ************ ** **** * conference ****, ** **** ******** **, ********** ** **:

"** *** ************ *** ****** *** ********* *** ******** ***** was ** **** ****** ** **** *** **** **** ** we **** *** ********* **** *** ********’ ******** ** ***** Axis ** **** **** ** **** ***."

**** ****** **** **** ** ******** **** *****, *** ** will **** ** *** **** ******* *** **** *****. ***** *** ******** **** *** ********* ** ****** *********** *** ***** *** *************** ** *** ****** ****** *** *** rise ** '********' *****, ** ***** ** ** **** * manner ** **** ****** **** / ********* ******** ******.

Comments (14)

Wow - But I don't think they will the last high end camera manufacturer that is going to have these kind of results.

Agreed. Bosch, Sony, Panasonic, Pelco surveillance numbers are not public but I would not be surprised if most of them were just as bad or worse than Axis's.

Oh well, just another Pelco story, sell out before your numbers hit the skids.

Canon Better not force us to go with Axis overpriced crap

Consider this a warning, they do that, and I'll 1, stop paying Maint for every site, 2, move off to another solution so fast there heads will spin.

it's not hard to see how Axis was loosing out big time, it's just not worth spending so much for so little benefit compared to the other options..

not competing in the $100 market was their undoing

Another noteworthy victim of the influx of low cost cameras is Arecont. Granted, their poor reputation is a big factor in their fall from prominence, but supposedly their two founders are in debt, they borrowed around $80M from the government last year, and their biggest differentiator in recent years (multi-imager specialized cameras) are no longer so different.

The camera business is analagous to the Compact Disc business in that consumers no longer pay a premium, and they never will again.

...they borrowed around $80M from the government last year...

Is that in addition to or part of the $80M of debt they offered in Dec? I hope the U.S. Government has better use for its funds than that...

you said it better than me I think. As I understand it they have to pay back $80m to the goverment and I'm guessing they're doing some belt tightening to make good on it.

No suprise as we've seen this happen with every other HW technical inovation from Cell phones (ie; Blackberry) to HD / Flat Screen TVs in the last 20 years. HW can and will always eventually be commoditized

In my opinion, the next great waves in the space will be SW & Services driven

"In my opinion, the next great waves in the space will be SW & Services driven"

Axis agrees with you!

"The race for megapixels is over. The race for business and operational intelligence begins. With the ability to download and run applications directly at the edge, the IP camera is now the iPhone of the surveillance world"

Unfortunately, that was from 2012 and 3 years later they have made very little progress turning their cameras into iPhones of surveillance.

IMHO, 5 years ago they should have put out a VAPIX SDK enabled but otherwise bare bones SD IP camera with a retail < $100. Pushed the SDK hard. Created a real AppStore where you pay and download on the spot...

Easier said than done, but somebody's gonna have the first real camera AppStore sooner or later, who is it going to be?

"Created a real AppStore where you pay and download on the spot..."

I agree on that. While it would not solve everything, it would certainly have made it a ton easier for apps to be used.

As is, you need to get in touch with a person at the app developer, get pricing / access / etc. from then before you can do anything on the camera side. It's a model straight out of the 1980s...

Services are definately the name of the game. I work for a large, traditional manufacturer. We have been trying to become more services oriented for several years, but old habits die hard. I sincerely hope that my employer, as well as the other "old giants", can kill their habits before their habits kill them. There are generations of knowledge bouncing around in these engineering departments. The industry as a whole would suffer if these were lost.

What services can manufacturer make money providing? Do you know mean software as a service or labor services or?

There are lots of ways to do it. SaaS is a good example. Also, building far-reaching solutions involving many different partners that require large up front investments. For example, and I'm just making this up, a large security manufacturer may come up with a system to put a camera into cash registers for facial recognition, and then lease the system with 5 year contracts, making the money back in years 3-5. The manufacturer needs to upfront the whole system, which may be $100m, but they profit $300m down the road.

There is also the option of developing very close partnerships with integration partners and reselling thier services, which allows end users to take advanage of contract vehicles or financing offers that the manufacturer can provide.

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

Hikvision USA Starts Layoffs on Sep 18, 2018
Hikvision USA has started layoffs, just weeks after the US government ban was passed into law. Inside this note, we examine: The important...
Favorite Intercom Manufacturers 2018 on Sep 14, 2018
Intercoms are certainly increasing in popularity, driven by the integration of video and IP networking. But who is the favorite? On the one side,...
VMS Export Shootout - Avigilon, Dahua, Exacq, Genetec, Hikvision, Milestone on Sep 13, 2018
When crimes, accidents or problems occur, exporting video from one's video surveillance system is critical to proving incidents. But who does it...
Ambarella on Computer Vision and US Hikua Ban on Sep 10, 2018
Ambarella, a widely-used video surveillance component supplier, is betting on the rise of computer vision and is already seeing a sales impact from...
Ligowave Wireless Profile - Ubiquiti Competitor on Aug 27, 2018
Ubiquiti has become the most common choice for wireless in video surveillance (see Favorite Wireless Manufacturers) but not without controversy and...
Axis Strong Q2 2018 Results on Aug 20, 2018
Axis reported strong Q2 2018 financial results and, for the first time in many years, Axis grew faster than Hikvision. However, the company's...
ISS VMS / Video Analytics Company Profile on Aug 16, 2018
Who is ISS? In the past few months, they had one of the craziest ISC West promo items in years. Then, they hired industry veteran and ex-Dahua...
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...
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

Ladders For Installers Guide on Sep 25, 2018
Ladders are one of the most important pieces of worksite equipment for the surveillance technician. Too often, however, even highly experienced...
Favorite Access Control Reader Manufacturer 2018 on Sep 25, 2018
Favorite reader votes are in, and it is not close. A global access giant ran away with the votes in a one-sided contest. But for many, the...
Genetec Takes Aim At 'Untrustworthy' 'Foreign Government-Owned Vendors' on Sep 24, 2018
Genetec is taking aim at 'untrustworthy' 'foreign government-owned vendors'. This is not a new theme for Genetec as nearly 2 years ago, Genetec...
4MP Camera Shootout - Axis, Dahua, DW, Hanwha, Hikvision, Uniview, Vivotek on Sep 24, 2018
4MP usage continues to climb, especially for low cost fixed lens models. To see who was best, we bought and tested seven 4MP models from Axis,...
Alexa Guard Expands Amazon's Security Offerings, Boosts ADT's Stock on Sep 21, 2018
Amazon is expanding their security offerings yet again, this time with Alexa Guard that delivers security audio analytics and a virtual "Fake...
UTC, Owner of Lenel, Acquires S2 on Sep 20, 2018
UTC now owns two of the biggest access control providers, one of integrator's most hated access control platforms, Lenel, and one of their...
BluePoint Aims To Bring Life-Safety Mind-Set To Police Pull Stations on Sep 20, 2018
Fire alarm pull stations are commonplace but police ones are not. A self-funded startup, BluePoint Alert Solutions is aiming to make police pull...
SIA Plays Dumb On OEMs And Hikua Ban on Sep 20, 2018
OEMs widely pretend to be 'manufacturers', deceiving their customers and putting them at risk for cybersecurity attacks and, soon, violation of US...
Axis Vs. Hikvision IR PTZ Shootout on Sep 20, 2018
Hikvision has their high-end dual-sensor DarkfighterX. Axis has their high-end concealed IR Q6125-LE. Which is better? We bought both and tested...
Avigilon Announces AI-Powered H5 Camera Development on Sep 19, 2018
Avigilon will be showcasing "next-generation AI" at next week's ASIS GSX. In an atypical move, the company is not actually releasing these...

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