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

* *** ***** *** **** **** **** ******* was ***** ******* ********.

******* ****, *** ** numbers *** **** **** solid ********* *******.

** **** ****, ** examine *** *******, *** shortage, **** ***** ** non-video, and *** *** **** ** the ****** ** ***********.

Results ********

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

**** ******* **** **% 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.

Login to read this IPVM report.

Related Reports

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,...
Coronavirus Hits Manufacturers, Standing Now, Worse To Come on Apr 06, 2020
Coronavirus is hitting security manufacturers, though overall modestly for...
Integrators Rising Against Coronavirus on May 27, 2020
IPVM integrator statistics make it clear - Coronavirus's impact on business...
Free IPVM All Access - Concluded! on Mar 18, 2020
The 2-day event has concluded. Thanks to everyone who accessed the IPVM...
Worst Camera Manufacturers 2020 on May 06, 2020
Which camera manufacturer have integrators had the worst experience with in...
IPVM's 12th Anniversary - Thank You! on Apr 07, 2020
IPVM is proud to celebrate it's 12 anniversary expanding our commitment to...
Verkada Raises $80 Million, Triples Valuation To $1.6 Billion on Jan 30, 2020
Verkada's rocketing valuation continues. 9 months ago, they got a...
The Booming Multi-Billion Coronavirus Fever Camera Market on Apr 21, 2020
The market for elevated body temperature detection cameras, aka 'coronavirus...
Don't Deceive. Lessons From Scott Schafer on Mar 20, 2020
Deception is bad. We can learn some important lessons from Scott Schafer, a...
HID Presents Signo on Apr 23, 2020
HID Global presented their new Signo readers they claim read farther and...
Fever Camera Sales From Integrators Surveyed on Jun 01, 2020
Fever cameras are the hottest trend in video surveillance currently but how...
Convergint Outlook Turns Negative on Apr 16, 2020
Convergint's outlook has turned negative, according to bond rater Moody's,...
HID Releases Lower-Cost Signo Readers on Mar 06, 2020
HID Global is releasing a new line of readers called Signo they claim read...
Pivot3 Mass Layoffs on Mar 27, 2020
Pivot3 has conducted mass layoffs, the culmination of grand hopes, a quarter...

Recent Reports

Genetec CEO Declares "We Don't Negotiate Payment With Patent Trolls" on Aug 11, 2020
Are patent trolls like terrorists? Genetec's CEO is coming out strongly...
Hanwha AI Analytics Camera Tested on Aug 11, 2020
Hanwha has released their Wisenet P AI camera, adding person and vehicle...
Alabama Schools Million Dollar Hikvision Fever Camera Deal on Aug 11, 2020
The Baldwin County, Alabama public schools purchased a $1 million, 144-camera...
Dahua Taunts Australian Government, Continues To Sell Illegal Fever Cameras on Aug 10, 2020
Dahua is effectively taunting the Australian government by continuing to sell...
HID Releases VertX Replacement Aero on Aug 10, 2020
HID is replacing two established and broadly supported types of access...
NDAA Compliant Video Surveillance Whitelist on Aug 10, 2020
This report aggregates video surveillance products that manufacturers have...
Telpo China Temperature Tablets Tested on Aug 10, 2020
The provider for overseas companies ranging from Canon Singapore to US'...
Dangerous Hikvision Fever Camera Showcased by Chilean City on Aug 07, 2020
Deploying a fever camera outdoors, in the rain, with no black body, is...
"Grand Slam" For Pelco's PE Firm, A Risk For Motorola on Aug 07, 2020
The word "Pelco" and "grand slam" have not been said together for many years....
FLIR Stock Falls, Admits 'Decelerating' Demand For Temperature Screening on Aug 07, 2020
Is the boom going to bust for temperature screening? FLIR disappointed...
VSaaS Will Hurt Integrators on Aug 06, 2020
VSaaS will hurt integrators, there is no question about that. How much...
Dogs For Coronavirus Screening Examined on Aug 06, 2020
While thermal temperature screening is the surveillance industry's most...
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...
AHJ / Authority Having Jurisdiction Tutorial on Aug 06, 2020
One of the most powerful yet often underappreciated characters in all...
SIA Coaches Sellers on NDAA 889B Blacklist Workarounds on Aug 05, 2020
Last month SIA demanded that NDAA 899B "must be delayed". Now that they have...