Axis Q4 2012 Financials Reviewed

Author: John Honovich, Published on Jan 30, 2013

Over the last two years, Axis's financial results have varied significantly and over the last few quarters, the overall trend has been decelerating growth, with the previous quarter, Q3, being particularly weak.

Now, Q4 2012 results show only modestly better overall growth of 15% in local currencies.

** *** ***** ****, **** *** **** **** ** * 12 ***** *** **** ** ~$*** ******* ***, ***** ** incredibly ***** *** ************. *** ********, ******** ******* ** ***** **** ***** ** ~$*** ******* ***.

**********, ****'* ************ ****:

  • **** - **% ****** ** ***** ********, ***** ** ****** solid ******** ** *** *** ** *** **** *** **** and ****** ** *** **** ****.
  • ******** - **% ****** ** ***** ********, ********** * ********** trend. *** **** ** *** *** **-**% ****** ******, ** needs **** **** *** ******** *** *** ** *** **? As **** ************ ** *********** ** ******* **** *****, ****** it **** ***********, ********** ***** **** ******* **** ~$*** ******* in *** ********.
  • **** - **% ******; ***** *** ********** ** **********, ** is *** * ****** ***** *****, */*** *** **** ** the ******** *** ~$** ******* *** *** *** *******.

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

*** ******* **** *** **** *&* ******** ****** ~**% *** is ** * $*** ******* ****** **** (***** **********).

Future ******?

**** ********* ** ******* **-**% ******, ** **** **** **** it ******** ** *** ****** **** *** *** ******* ***** market *******.

* ******* ***** ***** **** ****** ** **. ******* ****'* strong ********, ***** ********** ****** ****** ****:

  • ***** ******** ***** ** ****** **% **** *** ******** *** EMEA.
  • *** ******* ******** ****** ** ***** ***** *** ****** ** best **** ** *** *** ****** **********. **** **** **** drive ***** **** ** ** ***** *******?
  • ** **** ********* **% ****** ****** *** ******** *** ****, it ***** **** ~**% ****** ** **** ** *** **% growth *******.

**** **% ******* ****** *** **** ** *** *** ** it ** ** * $*** ******* ******** *** ****. *******, the **** ***** *** **** ********* ** ** ***** ** be ******* **** *** ****** ***** ***** *** *** **** can *** ******* ****** ** ***** ******** (**** ** ******* since *** **** *********** ***** *** ***** ** *** **********), Axis ** ****** **** ****** ****** ** *** ******.

Comments (5)

John, Thanks for another interesting report. Since a major part of my work is in China's IP camera market, I would say that China's IP market should stay very hot for another two or three years at least. As you you can tell from HikVision's growth, its annual revenue should top US$1.2B in 2012 and grows around 40% yoy. Whille I agree that Axis needs to get a bigger pie of China's market to meet it overall growth target, the main barrier for them is not that its domestic competitors are partially government owned (many of them are), its the pricing. As an example, Both Axis's 1604 and HikVision's DS-2CD864FWD-E use Aptina's A1000 sensor, but Axis's selling price is at least 3 times that of HikVision's. While the image quality of 1604 is better than HikVision's (especially WDR performance), it is hard to justify the huge price difference for many cost sensitive customers there. So Axis will main its niche and high margin position there unless it takes a very bold move.

Feng, thanks for the thoughtful reply. I certainly agree that price is a major factor as well. I will say from talking to a number of low cost camera providers (who can and do compete on price with Hikvision), they still find the lack of political and personal connections to be a huge barrier in China.

As for Axis, their box camera pricing is becoming uncompetitive, mainly because the market has jumped with a number of quality $300 - $500 multi-MP offerings. I would expect to see some sort of response/shift in the next 6 months. On the other hand, other lines, like minidomes are competitively in much better shape - the M30 series in particular.

I am not an expert in China but my gut feel is that European and American manufacturers are wasting their time trying to win big there. China's growth rate most likely will temper in the near future and, even if it doesn't, beating domestic companies in a protectionistic country is an extremely hard task.

The more interesting question to me is: Can Dahua and Hikvision knock off American and European manufacturers in America and Europe?

Hi John, I cannot agree with you more on that connections matter a lot in China's surveillance market, but it is just like that in US and many other countries and industries. You need both reasonable priced products and strong connections to win big there. There are some companies there with stronger connections than Hikvision there, but Hikvision's products stand out not with best image quality but with its product reliability and very reasonable price. As for your question, my personal take is that we will see more of China's domestic companies (not necessary HikVision or Dahua) take US and EU market share from US/EU-based companies than the other way around (especially in the commecial surveillance segment) as they spend more and more on R&D and products. There really is no such a high technical barrier in this industry like that in the CPU industry. Just my 2 cents.

Feng, I agree that there is much more likelihood of Chinese taking share outside of China than the opposite.

That said, even if Axis matched prices with Hikvision, I think they'd still be a huge disadvantage to Hikvision. Are you really suggesting that China's buying process favors domestic companies no more than America's?

John,

That's a very good question and I can only speak from my own experience and Axis can significantly expand its market share if it lower its price somehwhat (no need to be at the same level as most domestic companies' offers) since some of its IP cameras is still highly regarded in the field. For example, some government customers are willing to pay for the best products in the market (the logic behind this is that if the system fails to capture some critical incidents, they can always say that they have tried their best buying the best cameras but they cannot use the same execuses if they buy lower cost ones). So it really depends.

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

The 2019 Video Surveillance Industry Guide on Dec 10, 2018
The 300 page, 2019 Video Surveillance Industry Guide, covers the key events and the future of the video surveillance market, is now available,...
Resideo IPOs, Then Plunges on Oct 31, 2018
ADI and Honeywell Homes management have been touting their spinout and IPO for months, including appearing on Wall Street as they widely shared on...
Hikvision Growth Declines Q3 2018 on Oct 22, 2018
Hikvision's growth continues to decline in 2018 going from: Q1 - 33% Q2 - 22% Q3 - 14.6% In this note, we examine Hikvision's newest Q3...
Axis Strong US Growth, Flat EMEA - Q3 2018 Financials on Oct 18, 2018
This spring, Axis had its best financials in many years (see Axis Strong Q2 2018 Results). However, over the summer, Axis had many products sold...
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...
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...
Ascent / MONI Faces Lender Lawsuit and Debt Crisis on Sep 13, 2018
ASCMA, aka Ascent, aka Brinks Home Security, aka MONI, aka Monitronics is being sued by a group of their lenders who allege: As of June 30,...
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...

Most Recent Industry Reports

The 2019 Video Surveillance Industry Guide on Dec 10, 2018
The 300 page, 2019 Video Surveillance Industry Guide, covers the key events and the future of the video surveillance market, is now available,...
Multi-Factor Access Control Authentication Guide on Dec 10, 2018
Can a stranger use your credentials? One of the oldest problems facing access control is making credentials as easy to use as keys, but restricting...
Top 2019 Trend - AI Video Analytics on Dec 10, 2018
160+ Integrators answered: What do you think the top industry trend will be in 2019? Why? AI / video analytics was the run-away winner with...
AV Tech Company Profile on Dec 07, 2018
Taiwanese manufacturer AV Tech's revenue declined ~70% since 2012. Planning a comeback, AV Tech spoke to IPVM about their opportunities and...
Ubiquiti $79 Flex IP Camera Tested on Dec 07, 2018
U.S. Manufacturer Ubiquiti has released a 1080p, integrated IR IP camera, selling it directly for $79, making this one of the least expensive IP...
Infinova's Xinjiang Business Examined on Dec 07, 2018
As pressure mounts for companies to stop doing business in China’s Xinjiang region amid a severe human rights crisis, IPVM has found Infinova sold...
Akuvox Intercom Profile on Dec 06, 2018
Akuvox, a Chinese manufacturer of VoIP products, is expanding heavily into Video Intercom products with disruptive pricing targeted for commercial...
Sublethal Camera Gun Examined on Dec 06, 2018
Sublethal is a South African company that manufactures a remotely-controlled, camera-enabled gun called the Boomslang, which is Afrikaans for tree...
UK ICO Denies IPVM GDPR Complaint Against IFSEC, Decides Each Exhibitor Responsible on Dec 06, 2018
The UK Information Commissioner's Office (ICO) has denied IPVM's complaint against IFSEC for misuse of facial recognition. Each Exhibitor...
VMS Live Monitoring Shootout - Avigilon, Dahua, Exacq, Genetec, Hikvision, Milestone, Network Optix on Dec 05, 2018
Viewing live video is the first interaction and most common task most users have with a VMS. Who does it best and worst? Who offers the most...

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