Axis Growth Rebounds Q3 2013

By: John Honovich, Published on Oct 17, 2013

Axis had its best quarter in more than a year, rebounding from recent slow growth, to its old high growth pace. In this note, we examine what drove it and whether they can sustain it.

Financials Overview

Key details from the report:

  • 27% revenue growth in local currency terms for Q3 2012, a very strong number, that excludes random currency fluctuations. Last quarter, the Q2 2012 number was only 12% and the Q1 2012 one was 16%.
  • ~$200 million USD in revenue for the quarter, pace for $800 million annually.
  • Says, "interest is growing, particularly in banks, education and retail."
  • EMEA growth was 33% which is somewhat shocking since they have been struggling to get any growth in recent quarters there. Here's the graph of it:

On the call, Axis mentioned that EMEA benefited from soft comparables (i.e., a weak Q3 2012).

  • Asia growth was 39% which is strong, though of course, on a low base. Axis interestingly noted that, "A local development
    department has been in place in China since early 2013 in order to meet regional market needs and regulations in the best way."
  • Operating margin was 19.% which is quite strong for Axis' historical standards.

The access control expansion was mentioned repeatedly, but no specific guidance was given for specific sales.

Maintain High Growth

Axis' financial chart shows their challenges maintaining high growth over the last few years:

Since 2011, they have only had 3 strong quarters, with 6 poor ones of 15% or under.

Get Notified of Video Surveillance Breaking News
Get Notified of Video Surveillance Breaking News

$2 Billion Market Capitalization

Axis market cap is now ~$2 billion USD, about 2.5 times their 2013 sales.

Investor's Call Questions

When asked about acquisitions, Axis did not appear interested in or planning to acquire any company, noting that they "have no history nor tradition of growing through acquisitions" and that "it is not a central part of  our strategy going forward either."

When asked about all regions continuing performing strongly and whether there is a trend shift, Axis responded, "We don't see any underlying changes happening ... many positive effects happening at the same time in one quarter." This implies that Axis themselves may be expecting lower growth than this quarter's in the recent future.

Axis still says weaker development in southern Europe but that all sub regions contributed / improved.

Products: Axis reports more fixed dome sales and more M series sales.

Axis says they are happy with the progress with small systems, and rate of downloads of ACC, but did not offer specifics or numbers.

No word on how much AVHS is contributing...

 

2 reports cite this report:

Avigilon Growth Down, Expenses Up, Stock Slammed (Q1 2015) on May 04, 2015
Avigilon growth rate continues to slow down sharply yet the company's aggressive spending continues. Because of that, the stock market is...
Axis In Denial, Q3 2014 Financial Report Bad on Oct 16, 2014
Axis Q3 2014 numbers are bad. But their outlook is still rosy. [Update: And Q4 2014 numbers are just as bad.] The company has struggled to...
Comments (2) : Members only. Login. or Join.

Related Reports

Barnes Buchanan 2019: Despite 'Strange Narrative' Great Time To Be In Security on Feb 11, 2019
A "strange narrative" is being spun, said Michael Barnes [link no longer available] at the 2019 Barnes Buchanan Conference. However, despite that...
Dahua Posts Slowing But Strong Revenue Growth 2018 on Mar 04, 2019
Despite significant job cuts in China, Dahua's revenues grew more than 25% last year hitting a total of ~$3.5 billion USD, according to its latest...
ADT Stock Drops After Announcing Loss And Amazon Delay on Mar 12, 2019
ADT's stock price dropped significantly after reporting heavy losses and delays in its Amazon partnership, as seen in the screenshot below: In...
Verkada Gets Half Billion Dollar Valuation on Apr 26, 2019
Last week, when we profiled Verkada (The Fastest Growing Video Surveillance Sales Organization Ever - Verkada), we predicted they would raise $40...
Knightscope Adds Just 2 Total Customers In Past Year, Yet Raising Money at $300 Million Valuation on May 02, 2019
This is no longer funny. While Knightscope has laughed it up promoting robot selfies, joking about a 'suicidal robot', the man who attacked a...
Avigilon President Henderson Is Out on Jul 09, 2019
Avigilon's President and COO James Henderson is out, abruptly, after a remarkable ascension over the past 8 years, Motorola VP Jack Molloy has...
Resideo Stock Plunges 37%, CFO Ousted on Oct 23, 2019
The horrible year for the ADI / Honeywell Home spinout, Resideo, just got worse, with their stock plunging another 37% today. Not even a year...
NetPosa Revenue Plunges 90% on Nov 04, 2019
Revenue for China's long-time largest VMS provider NetPosa plunged 90% in the latest quarter, adding to the firm's serious financial...
Resideo CEO To Step Down on Dec 03, 2019
Resideo's CEO, Mike Nefkins, is stepping down, just 18 months after being brought in to lead the now plagued spin-out. Inside this note, we...
Vivint Valuation Falls $1.5 Billion on Dec 19, 2019
Residential market struggles continue. Now, Vivint's valuation has fallen $1.5 billion in its impending merger. Inside this note, we examine...

Most Recent Industry Reports

Masks Cause Major Facial Recognition Problems on Feb 24, 2020
Coronavirus is spurring an increase in the use of medical masks, which new IPVM test results show cause major problems for facial recognition...
Every VMS Will Become a VSaaS on Feb 21, 2020
VMS is ending. Soon every VMS will be a VSaaS. Competitive dynamics will be redrawn. What does this mean? VMS Historically...
Video Surveillance 101 Course - Last Chance on Feb 20, 2020
This is the last chance to join IPVM's first Video Surveillance 101 course, designed to help those new to the industry to quickly understand the...
Vulnerability Directory For Access Credentials on Feb 20, 2020
Knowing which access credentials are insecure can be difficult to see, especially because most look and feel the same. Even insecure 125 kHz...
AI/Smart Camera Tutorial on Feb 20, 2020
Cameras with video analytics, sometimes called 'Smart' camera or 'AI' cameras, etc. are one of the most promising growth areas of video...
China Manufacturer Suffers Coronavirus Scare on Feb 20, 2020
Uniview suffered a significant health scare last week after one of its employees reported a fever and initially tested positive for coronavirus....
Cheap Camera Problems at Night on Feb 19, 2020
Cheap cameras generally have problems at night, despite the common perception that integrated IR makes cameras mostly the same, according to new...
Milestone Launches Multiple Cloud Solutions on Feb 18, 2020
Milestone is going to the cloud, becoming one of the last prominent VMSes to do so. Milestone is clearly late but how competitive do these new...
Video Surveillance Architecture 101 on Feb 18, 2020
Video surveillance can be designed and deployed in a number of ways. This 101 examines the most common options and architectures used in...
UK Stands Behind Hikvision But Controversy Continues on Feb 18, 2020
Hikvision is exhibiting at a UK government conference for law enforcement, provoking controversy from the press, politicians, and activists due to...