Axis Q2 2014 Growth Up But

By: John Honovich, Published on Jul 09, 2014

Axis' seesaw growth continues. After Axis missed and profits sank in Q1 2014, the second quarter's overall growth numbers improved (20% growth in local currencies). However, the geographical breakout shows this to be an anomaly and downward revised market growth rates indicate future challenges.

Americas Still Weak

Americas growth dropped from an already weak 16% in Q1 to just 13% in the 2nd quarter.

This is a problem for Axis as the Americas account for the majority of their business. It also points to them continuing to lose share in the Americas to the likes of Avigilon, Hikvision, Samsung, etc.

EMEA Huge Jump

By contrast, EMEA revenue in the 2nd quarter was up 28% year over year. While this is huge, Axis acknowledges it is off a weak 2013 base and is almost certainly unsustainable at that level. Overall, EMEA's macroeconomic challenges / conditions remain.

Downward Market Growth Rates

For the past few years, Axis cited "the long-term growth rate for the network video market" at 20 to 25 percent.

Now, Axis has revised that downward, saying that the latest reports put the growth rate at 16 to 22 percent.

This, of course, is just for network video, not all video surveillance but follows the same downward pattern we have seen for the overall market. A lower growth market makes it tougher for all participants.

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

Below Average China Growth

In the call (17:30), Axis acknowledged that their growth rate are below the Chinese average and specifically the mega domestic manufacturers, Dahua and Hikvision.

Price Erosion

Axis mentioned that market research reports saying average sales price decline of 5-10% per year. They did not disagree with that. As such, Axis is increasing total unit sales faster than total revenue.

Axis Responds to Milestone Deal

Axis CEO emphasized their 'strong belief' that enterprise customers want best of breed and prefer to pick the 'best individual components' rather than buy a solution. However, he acknowledged that for small systems, end to end solutions are attractive and noted that this was what they were doing with Camera Companion, AVHS, etc.

New Products All High End

However, Axis selection of new product releases compounds their challenges in a decelerating market.

This year, essentially every Axis new product release has been targeted at the high end (e.g., Q1615, 4K camera, F series, etc.).

Though this should further solidify their hold at the top of the end market, the rapid progress of their Chinese competitors both in super low cost IP and now non-IP HD cameras, combined with Axis stagnancy in releasing new budget / low end offerings, means that they are going to continue to suffer declines in the small camera count / mass market business that they previously professed was a key growth area for them.

Axis Q2 Financial Documents

For more, see: Axis Q2 2014 / Half Year Report and Axis Q2 2014 Powerpoint.

2 reports cite this report:

Axis Financials From Bad To Worse (Q2 2015) on Jul 09, 2015
Things keep getting worse for Axis and now sales are actually shrinking. In...
Anixter Security Revenue Declines on Jul 30, 2014
Last quarter, we reviewed how Anixter's security business was struggling....
Comments (7) : Members only. Login. or Join.

Related Reports

ADT Slides Back, Disappointing Results, Poor Commercial Performance on Aug 06, 2020
While ADT had an incredible start to the week, driven by the Google...
Hikvision Global Revenue Falls, Hit By Coronavirus on Apr 27, 2020
Hikvision's global revenue fell in the first quarter of 2020 due to the...
Uniview H1 2020 Financials Examined on Sep 08, 2020
While Dahua and Hikvision, helped by fever camera sales, are recovering from...
Dahua Profits Surge Due To Fever Camera Sales on Aug 25, 2020
While Dahua's overall revenue is down, driven by challenges within China, the...
Dahua Revenue Plunges, 3 Execs Resign Q1 2020 on Apr 29, 2020
Dahua's sales dropped by 19.47% in the first quarter of 2020 amid the...
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,...
The Booming Multi-Billion Coronavirus Fever Camera Market on Apr 21, 2020
The market for elevated body temperature detection cameras, aka 'coronavirus...
Coronavirus Hits Manufacturers, Standing Now, Worse To Come on Apr 06, 2020
Coronavirus is hitting security manufacturers, though overall modestly for...
Facial Recognition: Weak Sales, Anti Regulation, No Favorite, Says Security Integrators on Jul 07, 2020
While facial recognition has gained greater prominence, a new IPVM study of...
Don't Deceive. Lessons From Scott Schafer on Mar 20, 2020
Deception is bad. We can learn some important lessons from Scott Schafer, a...
Infinova, March Networks and Swann H1 2020 Financials Examined on Sep 02, 2020
While Dahua and Hikvision, helped by fever camera sales, are recovering from...
Fever Camera Sales From Integrators Surveyed on Jun 01, 2020
Fever cameras are the hottest trend in video surveillance currently but how...
Pivot3 Mass Layoffs on Mar 27, 2020
Pivot3 has conducted mass layoffs, the culmination of grand hopes, a quarter...
Sunell Panda Cam Body Temperature Measurement Camera Tested on May 14, 2020
Sunell is far less well known than its gargantuan domestic competitors Dahua...
Integrators Rising Against Coronavirus on May 27, 2020
IPVM integrator statistics make it clear - Coronavirus's impact on business...

Recent Reports

Virtual ISC West and GSX+ Exhibiting Contrasted on Sep 17, 2020
Both ISC West and ASIS GSX are going virtual this year, just weeks apart, but...
X.Labs Sues FLIR on Sep 16, 2020
X.Labs, the maker of Feevr, has sued FLIR, the publicly traded thermal...
Video Surveillance 101 September Course - Last Chance on Sep 16, 2020
Today is the last chance to sign up for the Fall Video Surveillance 101...
No Blackbody Mistake, Half Million Dollar, Hikvision Fever Camera System in Georgia on Sep 16, 2020
A Georgia school district touted buying Hikvision fever screening "about...
Costar Technologies / Arecont H1 2020 Financials Examined on Sep 16, 2020
Costar's financial results have been hit by the coronavirus with the company...
Startup Cawamo Presents Live Alerts With Edge AI and Cloud VMS on Sep 15, 2020
Cawamo, an Israeli edge-to-cloud analytics and VMS startup, presented its...
Favorite Access Control Credentials 2020 on Sep 15, 2020
Credential choice is more debated than ever, with hacking risk for 125kHz and...
Dangerous Hikvision Fever Screening Marketing In Africa on Sep 15, 2020
A multi-national African Hikvision distributor is marketing dangerously...
New Products Show Fall 2020 Announced - Register Now on Sep 14, 2020
IPVM's sixth online show will feature New Products from over 25...
Hanwha 8K / 33MP Camera Tested on Sep 14, 2020
Hanwha Techwin has released an 8K / 33MP resolution camera, the TNB-9000 with...
Gait Recognition Examined on Sep 14, 2020
Facial recognition faces increasing ethical and political criticisms while...
Comparing 2020 Reality To 2010 Expectations on Sep 11, 2020
What can we learn from where the industry was in 2010 and what was believed...
China Dali Fever Cameras and Booming Sales Examined on Sep 11, 2020
Zhejiang Dali, one of China's original thermal technology developers, has...
Risks Of Managing End User Passwords (Statistics) 2020 on Sep 11, 2020
Alarmingly, most integrators used spreadsheets to manage passwords, IPVM...
Dedicated Vs Converged IP Video Networks Statistics 2020 on Sep 10, 2020
Running one's video system on a converged network with other devices can save...