Axis Q3 2017 Financial Results

By IPVM Team, Published 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 note, we examine the results, the shortage, Axis video vs non-video, and why the race to the bottom is diminishing.

Results Overview

**** ******* **** **% in ***** ********** **** over **** *** *** been ****** ****** *** year **** ****** ** the *** ** *** teens. Net ****** ******* **** ********, increasing ** **.*%.

******* **** *******, ***** margins ********* ** *.* percentage ****** **** **.*% to **.*%. **** ** a ******** ********* **** Axis *** **** ** grow ******* ****** ** cut ***** ******.

******* ** ************* ******.

Shortage ******

****** ************ ** ******, *** ******* *** ****** from * ******* ********. In ***** ********* ******, they **** **** ** this *****. ****** ** August, **** ********* * component ******** *******:

**** ********* ** ****:

*** ******* ********* *** a ****** ** **** demand *** ****** ***** than **********. *** ******** from *** *** *********** take ****** **** ****** due ** *** ***** supply ********* *** ******* components. 

*** ******** ** ****** a ******** ****** *** Q4 ********* ******* ** backordered ******** *** ****.

*******, *********** *** **** continue ** *******:

  • **** *****: *,***.* ***
  • ** **** ***: ***.* ***
  • ** **** ***: ***.* ***

***** ********** *********** *********** is *******, **** *********** are *** ***, **** ** available ******* *** **** sales *** **** ***********.

Expansion ******* ***** **** 

*** ******** ***** *** **** was **** ***-***** ***** were **** **** **** year, * ***** ** quite **** ****:

* ***** ****** ** 'other' ****** *** **** acquisitions, **** ********* ** *** ****. *** **** *** acquisitions *** **** **** a **** ***, ****** will **** ** **** from ******* ***** *********.

**** *********:

** ******** ** *** a ****** ***** *** our *** ******** ******** when ** ****** *** sales ******. ***** ******* relatively ***** ****** ******** to *** **** ******** and ********** ******* ***** fluctuate ** *** ******** reporting ** ***** ** to ************. 

** **** ** *********** to *** *** ***-***** growth **** ***** ******* as ** *** **** a ***** **** ** Axis *************** ******* ******* the **** ** *** bottom. ** ** ***, 'other' ** ***** **** ~6% ** **** ***** sales.

Tough ******* - ***** ******* *** ****** ****

**** ****** *** ******** in * ******* - South ******* *** *** Middle ****:

*** ****** **** ** particular *** ********** **** a ****** ****** *** Axis *** ***** *************. However, downward ****** ** *** oil ********, ***** ****** most ** *** *******/******** in *** ****** ****, and ** * ****** extent ***** *******, **** caused declining ******** ** ***** countries ********** **** ** 2017. 

Race ** *** ****** ***********

** ******* **** ***** results **** *** **** to *** ****** ** diminishing.

****** ** ****, **** had ***** ************, ****** **** ****** ** just *%***** **** ******* ********* 1%. *** ** ****** as **** ****,**** ***** ****** *** down (** ****). ***** **** ******* are ******** ****** **** they **** ********** ********, given *** ******* ********.

*** *** ******** ******* include:

  • ********* *** ***** *** increasingly ********** *** ****** for ***** *** **** to *** ***** **** professional ******** *** ** becoming ************ ********* ** find **** ** ***** customers.
  • *** **** ** ******* in 2017 ** **** *********** than ** **** *** **** some ***** ** *************, especially ** ** ****.
  • ********* *** ***** **** suffered **** ******* ************* issues *** ***** ******* problems **** **** **** switching ** **** **** attractive ** **** *********.

** ***** *** ** prudent ** **** *** '****' over ***, ** ***** and ********* *** ***** showing ***** *********** ** spend *******, *** **** is ******* ****** ********** it ** **** **** **** did ** ****.

Comments (9)

Undisclosed Manufacturer #1

10/23/17 02:14pm

I think this is a positive indicator for the industry that Axis is still able to grow despite the low cost Chinese competitors desperation moves. The fact that the drop in pricing in 2016 is less significant than in 2015 is also quite surprising considering the fact that Hikvision Addicted To Across The Board Sales.

 

 

John Honovich

IPVM | In reply to Undisclosed Manufacturer #1 | 10/23/17 09:07pm

quite surprising considering the fact that Hikvision Addicted To Across The Board Sales.

In the last few months, Hikvision has really dialed back the across the board sales. They first switched to only the lower end products and now they have not had any 'ALL PRODUCTS' sales at ADI in 2 months or more.

Also, in 2016, there was notable across the board permanent price cuts whereas in 2017 it has been more of a focus on running periodic sales, which again have diminished later this year.

Related, I bet Hikvision is realizing there is only so many people that are motivated to buy on sale and that the cost of the sales as you get larger gets worse and worse as existing customer who would have bought regardless simply get price cuts. Stats: Importance of Sales To Integrators - Statistics

Undisclosed Integrator #2

10/23/17 03:00pm

Very encouraging news for not only Axis Communications, but anyone that supplies products or services that sell quality and support rather than a focus on a race to the bottom with cutting price as a mistaken goal. Kudos to the Axis Team (from an integrator deep in the heart of Texas w/ the ability to deliver Axis and the Chinese options as well). Once an Axis fan; always an Axis fan.

Undisclosed #3

IPVMU Certified | 10/23/17 03:58pm

A rising tide lifts all boats.  

What would the industry look like if/when overall market growth stagnates?

John Honovich

IPVM | In reply to Undisclosed #3 | 10/23/17 09:08pm

What would the industry look like if/when overall market growth stagnates?

Are you implying that overall market growth is or is not stagnant right now? Because over the last few years, overall revenue growth has been stagnant as volume shipments spiked but was offset by price declines, e.g., 2016 Collapsed Growth, Collapsed Pricing, IHS Now Admits.

Undisclosed #3

IPVMU Certified | In reply to John Honovich | 10/23/17 09:32pm

Good point.  I meant growing.

If you believe IHS, revenue was projected to grow 5.5% this year, with possibly a disproportionate amount of it from the Chinese again.

Still, not flat...  

btw, do you think that the IHS numbers are picking up on the DIY/Sams Club/Nest etc surge?

John Honovich

IPVM | In reply to Undisclosed #3 | 10/23/17 09:39pm

If you believe IHS, revenue was projected to grow 5.5% this year

But that's IHS move, issue projections at a high level, later quietly issue actual growth at lower numbers.

As for DIY, I do not know how IHS handles that. IHS has a general challenge of trying to estimate / account for a wide range of private companies data that is impossible to without a significant margin of error.

Undisclosed #4

10/25/17 12:58pm

Nice to see Axis holding their ground. Still trying to make sense of the Axis audio play... numbers don't lie.

Undisclosed #4

In reply to Undisclosed #4 | 10/27/17 10:00pm

Oh wait... they are just copying Bosch... I get it now.

Read this IPVM report for free.

This article is part of IPVM's 6,592 reports, 889 tests and is only available to members. To get a one-time preview of our work, enter your work email to access the full article.

Already a member? Login here | Join now

Related Reports

Dahua Revenue Grows But Profits Down, Cause Unclear on Oct 20, 2020
While Dahua's overall revenue was up more than 12% in Q3 2020, a significant...
Top Video Surveillance Service Call Problems 2020 on Oct 23, 2020
3 primary and 4 secondary issues stood out as causing the most problems when...
Uniview H1 2020 Financials Examined on Sep 08, 2020
While Dahua and Hikvision, helped by fever camera sales, are recovering from...
Costar Technologies / Arecont H1 2020 Financials Examined on Sep 16, 2020
Costar's financial results have been hit by the coronavirus with the company...
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...
ADI Returns To Growth, Back To 'Pre-COVID Levels' on Aug 05, 2020
While ADI was hit hard in April, with revenue declining 21%, the company's...
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...
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...
Verkada Video Analytics Tested 2020 on Oct 08, 2020
In 2019, Verkada released people and face analytics but our testing then...
Bottom: Integrators Start To Stand Vs Coronavirus on Apr 20, 2020
Good news - IPVM integrator statistics show that while coronavirus has hit...
Manufacturers Doing Better Than Expected Against Coronavirus on May 05, 2020
Coronavirus impacts are not hitting manufacturers as badly as they feared,...
Integrators Rising Against Coronavirus on May 27, 2020
IPVM integrator statistics make it clear - Coronavirus's impact on business...
Dartmouth College Deploys K3 Temperature Screening on Sep 29, 2020
While Dartmouth College has a $6+ billion endowment, the College has bought...
Hikvision Returns To Growth Driven By Overseas Fever Cameras on Jul 29, 2020
While Hikvision's revenue fell in Q1 2020, it rebounded in Q2 attributed to...
Verkada 2020 Cameras Image Quality Test on Oct 06, 2020
Verkada's first-generation cameras suffered from numerous video quality...

Recent Reports

ISC Brasil Digital Experience 2020 Report on Oct 23, 2020
ISC Brasil 2020 rebranded itself to ISC Digital Experience and, like its...
Top Video Surveillance Service Call Problems 2020 on Oct 23, 2020
3 primary and 4 secondary issues stood out as causing the most problems when...
GDPR Impact On Temperature / Fever Screening Explained on Oct 22, 2020
What impact does GDPR have on temperature screening? Do you risk a GDPR fine...
Security And Safety Things (S&ST) Tested on Oct 22, 2020
S&ST, a Bosch spinout, is spending tens of millions of dollars aiming to...
Nokia Fever Screening Claims To "Advance Fight Against COVID-19" on Oct 22, 2020
First IBM, then briefly Clorox, and now Nokia becomes the latest Fortune 500...
Deceptive Meridian Temperature Tablets Endanger Public Safety on Oct 21, 2020
IPVM's testing of and investigation into Meridian Kiosk's temperature...
Honeywell 30 Series and Vivotek NVRs Tested on Oct 21, 2020
The NDAA ban has driven many users to look for low-cost NVRs not made by...
Ubiquiti Access Control Tested on Oct 21, 2020
Ubiquiti has become one of the most widely used wireless and switch providers...
Avigilon Aggressive Trade-In Program Takes Aim At Competitors on Oct 20, 2020
Avigilon has launched one of the most aggressive trade-in programs the video...
Mexico Video Surveillance Market Overview 2020 on Oct 20, 2020
Despite being neighbors, there are key differences between the U.S. and...
Dahua Revenue Grows But Profits Down, Cause Unclear on Oct 20, 2020
While Dahua's overall revenue was up more than 12% in Q3 2020, a significant...
Illegal Hikvision Fever Screening Touted In Australia, Government Investigating, Temperature References Deleted on Oct 20, 2020
The Australian government told IPVM that they are investigating a Hikvision...
Panasonic Presents i-PRO Cameras and Video Analytics on Oct 19, 2020
Panasonic i-PRO presented its X-Series cameras and AI video analytics at the...
Augmented Reality (AR) Cameras From Hikvision and Dahua Examined on Oct 19, 2020
Hikvision, Dahua, and other China companies are marketing augmented reality...
18 TB Video Surveillance Drives (WD and Seagate) on Oct 19, 2020
Both Seagate and Western Digital recently announced 18TB hard drives...