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

Brivo Business Profile 2020 on Jan 27, 2020
Brivo has been doing cloud access for more than 20 years. Is the 2020s the decade that cloud access becomes the norm? CEO Steve Van Till recently...
Axis Strong US Growth, Flat EMEA - Q3 2018 Financials on Oct 18, 2018
This spring, Axis had its best financials in many years (see Axis Strong Q2 2018 Results). However, over the summer, Axis had many products sold...
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...
Milestone 2017 Financials Examined on Apr 24, 2018
For ISC West 2018, Milestone released ... their financials, touting "strong revenue growth in 2017". However, there were discrepancies with the...
Axis Breaks 1 Billion USD Annual Revenue on Jan 26, 2018
Axis Communications annual revenue has exceeded $1 billion for the first time in 2017. In this note, we examine Axis financial performance over...
Axis Q3 2017 Financial Results on Oct 23, 2017
A big issue for Axis this past quarter was their product shortage. Despite that, new Q3 numbers for Axis show solid financial results. In this...
Knightscope Financials Reveal Huge Increase In Expenses And Incorrect Accounting on Oct 02, 2017
Knightscope's H1 2017 financials are out, in the midst of their ongoing crowd funding approaching $17 million. In this note, we analyze...
Hikvision Stock Surges - Doubling In Past Year on Jun 29, 2017
Hikvision's stock, on the China Shenzhen stock exchange, has more than doubled in the past year, vaulting the company's worth to an astounding (for...
Axis Beats Avigilon Growth Rate (AVO Q1 2017) on May 16, 2017
In what is likely the first time ever, Axis beat Avigilon's revenue growth for Q1 2017. Inside this note, we examine Avigilon's Q1 2017 financial...
Axis Posts Strong Q1 2017 Financial Results on Apr 24, 2017
Axis posted strong numbers for Q1 2017, after having some challenges in 2016 (Q1 2016, Q3 2016). Inventory levels and overall spending show...

Most Recent Industry Reports

Verkada: "IPVM Should Never Be Your Source of News" on Jul 02, 2020
Verkada was unhappy with IPVM's recent coverage declaring that reading IPVM is 'not a good look' and that 'IPVM should never be your source of...
Vintra Presents FulcrumAI Face Recognition on Jul 02, 2020
Vintra presented its FulcrumAI face recognition and mask detection offering at the May 2020 IPVM Startups show. Inside this report: A...
Uniview Wrist Temperature Reader Tested on Jul 02, 2020
Uniview is promoting measuring wrist temperatures whereas most others are just offering forehead or inner canthus measurements. But how well does...
Dahua USA Admits Thermal Solutions "Qualify As Medical Devices" on Jul 02, 2020
Dahua USA has issued a press release admitting a controversial point in the industry but an obvious one to the US FDA, that the thermal temperature...
Access Control Online Show - July 2020 - With 40+ Manufacturers - Register Now on Jul 01, 2020
IPVM is excited to announce our July 2020 Access Control Show. With 40+ companies presenting across 4 days, this is a unique opportunity to hear...
Hanwha Face Mask Detection Tested on Jul 01, 2020
Face mask detection or, more specifically lack-of-face-mask detection, is an expanding offering in the midst of coronavirus. Hanwha in partnership...
UK Government Says Fever Cameras "Unsuitable" on Jul 01, 2020
The UK government's medical device regulator, MHRA, told IPVM that fever-seeking thermal cameras are "unsuitable for this purpose" and recommends...
Camera Course Summer 2020 on Jun 30, 2020
This is the only independent surveillance camera course, based on in-depth product and technology testing. Lots of manufacturer training...
Worst Over But Integrators Still Dealing With Coronavirus Problems (June Statistics) on Jun 30, 2020
While numbers of integrators very impacted by Coronavirus continue to drop, most are still moderately dealing with the pandemic's problems, June...