Axis Q2 2014 Growth Up But

Author: 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.

****' ****** ****** *********. ***** **** ****** *** ******* **** ** ** ****, *** ****** *******'* ******* ****** ******* ******** (20% ****** ** ***** **********). *******, *** ************ ******** ***** this ** ** ** ******* *** ******** ******* ****** ****** rates ******** ****** **********.

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

Americas ***** ****

******** ****** ******* **** ** ******* **** **% ** ** to **** **% ** *** *** *******.

**** ** * ******* *** **** ** *** ******** ******* for *** ******** ** ***** ********. ** **** ****** ** them ********** ** **** ***** ** *** ******** ** *** likes ** ********, *********, *******, ***.

EMEA Huge ****

** ********, **** ******* ** *** *** ******* *** ** **% year **** ****. ***** **** ** ****, **** ************ ** is *** * **** **** **** *** ** ****** ********* unsustainable ** **** *****. *******, ****'* ************* ********** / ********** remain.

Downward ****** ****** *****

*** *** **** *** *****, **** ***** "*** ****-**** ****** rate *** *** ******* ***** ******" ** ** ** ** percent.

***, **** *** ******* **** ********, ****** **** *** ****** reports *** *** ****** **** ** ** ** ** *******.

****, ** ******, ** **** *** ******* *****, *** *** video ************ *** ******* ******* ******** ******* ** **** **** *** *** ******* ******. * ***** ****** ****** ***** ** ******* *** *** participants.

Below ******* ***** ******

***** ****(**:**), **** ************ **** ***** ****** **** *** ***** *** Chinese ******* *** ************ *** **** ******** *************, ***** *** *********.

Price *******

**** ********* **** ****** ******** ******* ****** ******* ***** ***** decline ** *-**% *** ****. **** *** *** ******** **** that. ** ****, **** ** ********** ***** **** ***** ****** than ***** *******.

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

**** *** ********** ***** '****** ******' **** ********** ********* **** best ** ***** *** ****** ** **** *** '**** ********** components' rather **** *** * ********. *******, ** ************ **** *** small *******, *** ** *** ********* *** ********** *** ***** that **** *** **** **** **** ***** **** ****** *********, AVHS, ***.

New ******** *** **** ***

*******, **** ********* ** *** ******* ******** ********* ***** ********** in * ************ ******.

**** ****, *********** ***** **** *** ******* ******* *** **** targeted ** *** **** *** (*.*.,*****,** ******,* ******, ***.).

****** **** ****** ******* ******** ***** **** ** *** *** of *** *** ******, *** ***** ******** ** ***** ******* competitors **** ** ***** *** **** ** *** *** ***-** HD *******, ******** **** **** ********* ** ********* *** ****** / *** *** *********, ***** **** **** *** ***** ** continue ** ****** ******** ** *** ***** ****** ***** / mass ****** ******** **** **** ********** ********* *** * *** growth **** *** ****.

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

*** ****, ***:**** ** **** / **** **** ****** ******* ** **** **********.

Comments (7)

The report also mentions that inventory levels at US distributors is up. I take this to mean increased sales to these distributors have not yet sold through at the same pace. I assume Axis recongnizes sales when they invoice the distributor.

In Q1 2014, they said that inventory levels at US distributors declined. I am not sure if this is just a catch up for that.

Axis might argue that this is a bullish sign as it means that distributors are bullish about future sales accelerating. [Update: In the call, they mentioned that previous levels were low and that this increase is positive sign.]

I don't know. Since inventory levels declined and then increased so far, it will take the next 2 quarters to really get a good gauge of what is happening.

Btw, Axis' share price jumped nearly 10% for the day (July 9, 2014). I am a little surprised as I don't see what fundamentally changed for the better in these results (i.e., it's in line with their past year plus performance pattern).

Since the Chinese camera guys are encroaching into traditional Axis markets, what is Axis doing to try and penetrate the Chinese market?

Can they even compete there?

It's a good question and Axis has provided us some feedback that we are putting together for a post next week.

If I had to guess though, Axis is targeting very high end projects inside China where advanced / niche feature sets that they are strong in can help them win. I find it hard to believe that Axis can compete for small systems in China.

Btw, Axis gave a rule of thumb of 8 to 10 years for replacement of cameras, consistent with Lifespan of Video Surveillance Systems survey results.

Axis CEO on Dropcam/Google deal: "focused on the consumer segment, selling everything online .... no direct effect from our perspective."

This is somewhat bizarre, considering consumer was/is clearly a key area for AVHS (and Dropcam was a former Axis partner).

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 on Financial Updates

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...
Hikvision Strong Domestically, International Business Struggles on Jul 25, 2018
Hikvision's H1 2018 results are out. Overall revenue growth has sharply dropped, with the company acknowledging their "facing geopolitical...
Arlo IPO Filing Reveals Key Financial and Competitive Details on Jul 09, 2018
Arlo is going to IPO at a projected valuation greater than Axis. Now, Arlo has released their 175-page Form S1 Registration Statement for its...
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...
ADT Hammered Again, Loses Another Billion In Market Cap on Mar 16, 2018
ADT's CEO told investors that, 'in baseball terms', ADT was batting 5 for 5. But investors told ADT's CEO, 'in baseball terms', that he was...
Arlo, Bigger Than Avigilon, More Valuable Than Axis on Feb 08, 2018
Arlo, the wireless IP camera offering that Netgear bought ~5 years ago for a few tens of millions is now doing more revenue than Avigilon and...
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...
Sentry360 Bankruptcy on Nov 30, 2017
Sentry360, a US-based video surveillance manufacturer, most well-known for its panoramic cameras, has filed for Chapter 7 bankruptcy. In this...
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...
Avigilon Shifts Strategy To Maximizing Profitability (Q4 2016 Results) on Mar 01, 2017
Avigilon had previously been known for big spending, hiring a large sales force and throwing lavish partner parties at tradeshows like ISC West....

Most Recent Industry Reports

Knightscope Winning Investors, Struggling With Growth on Oct 16, 2018
While Knightscope's new financials show the company only winning 11 new customers in the past 12 months, the company continues to win new...
Integrator Laptop Guide on Oct 16, 2018
This 18-page guide provides guidance and statistics about integrator laptop use. 150 integrators explained to IPVM in detail about their laptops,...
Huawei Admits AI "Bubble" on Oct 16, 2018
A fascinating article from the Chinese government's Global Times: Huawei’s AI ambition to reshape industries. While the Global Times talks about...
ADI's Financials Revealed + W-Box Growth Priority on Oct 15, 2018
  ADI is one of the most powerful distributors in the security industry but how big are they? How much profit do they make? How much do they sell...
Amazon Touts Home Security Market Disruption on Oct 15, 2018
Amazon is coming for ADT and all of home security. Indeed, Amazon is advertising this as, in their own words, calling home security a: Inside...
Higher Power PoE 802.3bt Ratified, Impact on Security Products Examined on Oct 12, 2018
Power over Ethernet has become one of the most popular features of many video, access, and other security products. See our PoE for IP Video...
"New Zealand Govt Uses Chinese Cameras Banned In US", Considers Security Audit on Oct 12, 2018
Newsroom NZ has issued a report: "NZ Govt uses Chinese cameras banned in US": This comes after the US federal government banned purchases of...
Mysterious Patent Troll 'Secure Cam' Targets Industry, Sues Hanwha, Hikvison, JCI, Panasonic, More on Oct 11, 2018
A company named "Secure Cam," who is actively hiding their ownership, has acquired a slew of video patents and is systematically suing video...
Unfixed Critical Vulnerability In Millions of XiongMai Devices Disclosed on Oct 10, 2018
XiongMai, one of the biggest OEMs alongside Dahua and Hikvision, has suffered a critical vulnerability impacting millions of their devices. This...

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