Axis Hammered by Recession

Author: John Honovich, Published on Feb 04, 2009

Axis video growth dropped from 32% to 9% and, in Europe, revenue actually declined. This is bad news not only for Axis but for the industry. The IP video market is deteoriating even faster than the economy - IP video is not recession proof (see the economic meltdown report for broader analysis and discussion).

Read the Axis 2008 year end report for the details. Here are the highlights:

  • Only 9% global growth in video from Q4 2007 to Q4 2008. Over the last 12 months, revenue did not grow much at all. This was a poor year relative to the continuous claims of non stop 30%-40% annual growth.
  • Europe revenue down 1%; Americas up 4.5%; Asia up 39% (though Asia only is 1/10 of total revenue)
  • Immediately after this announcement, Axis stock dropped 15%. The stock is down 38% since Dec 15th when they warned of slowing growth. Overall, the stock is down 75% from its peak 14 months ago.
  • Axis' guidance for 2009: "The market is difficult to assess at present and generally lower activity is being seen on the security market, which also impacts the growth rate for network video."

The question now is: Will growth be negative for Axis in Q1? It could legitimately happen since the economy is clearly worsening in most of the US and Europe.

Axis Specifically

I believe Axis is poorly prepared for a major recession where emphasis is placed on cutting costs. As I examine in the megapixel camera comparison report, when you compare Axis to the evolving marketplace, Axis' products are high quality but they overshoot most of the market at price points that will be harder and harder for end users to justify.

The Broader IP Video Market

That being said, I certainly do not think this is a problem isolated to Axis. As discussed in the 2009 Industry Guide, the nature of IP video projects and the weak business case of IP video puts the market at significant risk to this major recession.

Hopefully, this is a wake up call for all to the seriousness and need to respond and improve.

3 reports cite this report:

Axis and Milestone on the Recession's Impact on Mar 01, 2009
As the largest manufacturers of IP cameras and open VMS software, Axis and Milestone are key forces in the video surveillance market. Recently,...
Why Analog is Gaining Ground Against IP Video on Feb 16, 2009
Those who think the recession is speeding up IP convergence are likely ignorant or hopeful. Indeed, the recession is dramatically slowing...
Economic Meltdown Rocks Security Industry on Feb 08, 2009
This is no ordinary recession. Dramatic and permanent changes have already begun. In conversations with over 30 end users, integrators and...

Most Recent Industry Reports

PoE Powered Access Control Tutorial on Jan 19, 2018
Powering access control with Power over Ethernet is becoming increasingly common.  However, access requires more power than cameras, and the...
If You Have 4 Cameras, You Can Throw Them Away, If You Have 400, They Throw You Away on Jan 19, 2018
Do users care about anything but price? Do user care about cybersecurity? Do users care about trusting their supplier? These have become...
Chinese Government Hikvision Surveillance System On US Government Network on Jan 18, 2018
Hikvision, the Chinese government-owned manufacturer, has publicly claimed that their products are running on a US government network. Moreover,...
Winter 2018 Camera Course on Jan 18, 2018
Learn video surveillance and get certified. Register now. Save $50 on the course, ending this Thursday the 18th, plus get access to 2 class times...
VSaaS Usage Statistics 2018 on Jan 18, 2018
VSaaS has been a 'next big thing' for more than a decade. The prospect of managing, storing and streaming video from the cloud rather than...
Vivint Streety Video Strengthens Door Knocking on Jan 17, 2018
Vivint is famous (or infamous depending on your perspective) for mastering large scale door to door selling. The company has skyrocketed from a...
Axis: "It’s A Question Of Trust And Who You Want To Be Associated With" on Jan 17, 2018
Who do you trust? Who do you want to be associated with? Axis is raising hard questions to start 2018. In this note, we examine these questions,...
Software House Vulnerability Allows Inside Attacker To Open Doors on Jan 17, 2018
A vulnerability in Software House IP-ACM modules allows an attacker to potentially unlock doors, or perform other actions, on affected systems....
'Defiant' Hikvision 'Strikes Back' At WSJ And US on Jan 16, 2018
The fight is on. Hikvision and their owner, the Chinese government, 'strikes back' against the Wall Street Journal and US politicians raising...
The 2018 Surveillance Industry Guide on Jan 16, 2018
The 300 page, 2018 Video Surveillance Industry Guide, covering the key events and the future of the video surveillance market, is now available,...

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