Yay, Axis?
Axis Posts Strong Q1 2017 Financial Results
Published Apr 24, 2017 13:11 PM
Axis posted strong numbers for Q1 2017, after having some challenges in 2016 (Q1 2016, Q3 2016). Inventory levels and overall spending show positive signs for Axis.
In this report we analyze Axis' Q1 2017 results and look at how Axis is dealing with the race to the bottom.
Q1 **** ********
***** **** ** **% ** ***** currencies, ********* ** ~$**** ***, * significant jump **** ** ****'* **% ******. However, **** ** **** ****** **** from ***-***** ********, ******* *****, ****** the ***** ******** ****** ** ~**% in ***** **********. ******* ******** ********** ********* at **%.
**** ********** **** ****** ** ************ replenishing ***** **** ****** **** **** late ** ****, *** **** ******** companies (**, ***********) ************ *** *******.
Overall ******** ******
**** ****** ******-***** ****** ** **** region, **** ** **%, ******** ** 28% *** **** ** **%. ****** in **** ** ************ **********, ** Axis *** **** ********** **** ********* growth ** **** **********. *******, **** Asia ****** ***** ** *** ** and **** *** ** ***** **** than **% ** ***** ***** *******.
***-***** *****
******* **** *** "*****" ******* ***** grew ** **** ** ****. ***** **** group ******** **** "*********" ********, **** their ******* **** ** ********, *** ******* **** **** ****** came ********* **** ***** ***********.
R&D ******** ** *************
*&* ******** **** **%, * ******* sign **** **** ** ********** ** invest ** ******* ************ *** ************:
***** ******** *** ** ~**%, ** line **** *** ****** ** ******* sales, *** ***** ******** **** ** just **%
Avigilon ********
*** ********, ********'* ** **** ******* ****** ******* ****-******* ********, **** ***** and ***** ******** ********** ****, *** a ***** **% ****** ** *&* ********.
***** ** ***** *******, **** ** showing **** ********** ** ***** ****** outlook *** ****.
Inventories ****, ***** ******* *****
****' ********* *** **** ~**%, ***** the ******* **** *** *** ****** of ************ ************ ***** **** **** sales. **** ***** ****** *********** ********** in **** ********, ** **** ******** distributors ******* **** ********* **** ******** in ***** ** **** ******, ***** *** ** ***** **** expected *****.
***** ***** ** ****' ************ ******* sheet **** ******* *******. ***-******* ****** rose *************, ********* *** ** ************ done ** ****, ********* *** ******** of **** *** * *** ** building ** ****.
Race ** *** ****** ****** ********
**** **** ***-******* *************, *** **** to *** ****** *****, ********* *** by ********* *** ***** ********* *****, *** ******** ****. **** ****** contributed ** ************ ********** **** ******* stock ** ****, ****** ** *** the ****** ***** ***** ** *** much ********* ********* ***** ****. *******, recent ******* **** **** **** **** the ****** *** ** ******* **** confident ***** *** **** **** ****, at ***** *** *** ********* ******. While ** ** *** ****** ***** pressure ** ******, **** *** ** able ** ******** ***** ******** ** a ******* *******, **** ** ******* higher ****** ** *** ******* ** reduced ******* *********** ** ********* *** other ******* ************* ******* *** *** price-conscious segment.
Comments (4)
UM
Undisclosed Manufacturer #1
Apr 25, 2017UM
Undisclosed Manufacturer #2
Apr 26, 2017Brian, what % of this growth would you attribute to their decision to sell OEM products/solutions that are now directly competing with the partners, such as NVR's, switches and VMS software? Do you believe this short-term gain will impact them in the long-term as these partners migrate to other non-competing camera partners?
Brian Karas
Apr 26, 2017I think that overall those products are a small part of Axis' total sales.
The non-Video/"Other" product category (which would include switches, intercoms, etc, but not NVRs or VMS) was a tiny part of their overall revenue, though it had large growth from a percentage perspective.
The partner competition question is a good one, and it is hard to really say at this stage. Right now, Axis' offerings in that area are not a major threat to many of their partners, but they have taken some larger deals: (e.g.:Axis Wins ~$20 Billion Retailer With End to End Solution, This Small City is Becoming All Axis).
The challenge for those partners is in finding other truly non-competing camera offerings. Bosch, Dahua, Hanwha, Hikvision, IDIS, Panasonic, Pelco, and many others all offer recorders/management software and/or a VMS. Arecont is one of the few larger camera-only companies, but they do not have the product line diversity that Axis has. This does not leave a lot of options for those partners.
JH
John Honovich
Jul 12, 2017Update: here are Axis Q2 2017 results, growth 12% in local currencies, slower than Q1 but still solid. Not much interesting to call out (good or bad) as growth was fairly even across regions and segments.