BRS Labs Financial and Company Update 2012

By: John Honovich, Published on Jun 14, 2012

BRS Labs remains one of the most controversial companies in the surveillance market. They burst on to the scene in 2008 claiming $100 Million worth of contracts 'in the pipeline' and an imminent 'exit north of a billion dollars.' Since then the company has been subject to fierce debates, numerous trade show awards and, most recently, a social media firestorm. In this note, we review a letter from BRS Labs' CEO that details their current financial state plus we examine their overall positioning.

Key Points

Here are the key points we see about BRS Labs:

  • The company is focused on 'whale hunting', targeted at large government and critical infrastructure organizations that are suckers prime targets for spending on large speculative security projects.
  • BRS has secured a number of contracts with very respected organizations. The key question/issue is how big and inclusive those contracts are. Most appear to a first stage of potential super large scale rollouts.
  • BRS is the only company aggressively marketing 'super' analytics and have this large and lucrative market segment, essentially, to themselves.
  • The company continues to burn through cash, most likely due to the long and costly sales cycles of such complex, large deals.

Financial Update

Individuals claiming to be BRS Labs investors have forwarded an email they say is from BRS Labs' CEO. We contacted BRS Labs repeatedly over a week but received no response. That noted, here are the key points from the letter/email:

  • 3 major projects cited: 555 cameras in DC for nearly one million dollars with the potential for ~9,500 more cameras in the future; 1,200 cameras for a US transit agency worth $2.4 Million USD; pending deal with a Nuclear Regulatory Agency for 'tens of thousands of cameras'
  • Through the first 5 months of 2012, "well over $12 million in closed deals already that will hit the books this year"
  • However, they "remain in a cash flow shortfall"
  • Raising more investment: "Put one million common shares on the market at $3 per share. This price is only for current investors and their relatives and associates. As I discussed on the conference call; if every investor ups their position by 2% to 3% in this final $3 offering, we will have covered our short fall and not have to "go on the road" to raise the money. There is no "minimal" amount of stock that can be purchased in this round so you may buy $99 or $999,000, but I would like to close this offer at the end of the month.:

The good news for BRS Labs is that they are clearly getting footholds into the megaprojects they need to be viable. Plus, if the user likes the BRS Labs pitch, they do not have any strong alternatives.

The main two challenges are:

  • Time Pressures: Even they seem to acknowledge it, including this statement in the letter: "It has taken longer than any of us wanted." Part of it is their own fault; Since the beginning they have heaped upon themselves unrealistic expectations (i.e., claimed $100 Million pipeline in 2008). At this point, how much money can they continue to raise and will they be able to raise it?
  • Product Acceptance: Ultimately, the key determinant of BRS Labs success is how well the product works at their early customers / early stage deployments. So much of BRS Labs potential is based on going from try outs to full organization wide roll-outs. This has been hard for all previous video analytic entrants. BRS Lab's predecessors got a lot of big customer's excited but the results never matched the hype (a la Object Video). Will BRS Labs meet the same fate? We do not know but ultimately that will make or break them.

For background on BRS Labs product, pricing and positioning, see our BRS Labs AiSight review.

Comments : Members only. Login. or Join.

Related Reports

Hikvision Fever Screening Thermal Solutions Examined on Apr 13, 2020
Hikvision is marketing "safer, faster, smarter" with their Fever Screening...
Hikvision Global News Reports Directory on Jun 18, 2020
Hikvision has received the most global news reporting of any video...
The Booming Multi-Billion Coronavirus Fever Camera Market on Apr 21, 2020
The market for elevated body temperature detection cameras, aka 'coronavirus...
China Surveillance Vulnerabilities Being Used To Attack China, Says China on Apr 07, 2020
While China video surveillance vulnerabilities have been much debated in the...
2020 Mid Year Video Surveillance Industry Guide on Jul 27, 2020
The first half of 2020 has been shocking, for the world generally, and for...
Startup Calipsa Presents AI False Alarm Filtering on Jul 21, 2020
Calipsa presented its AI false alarm filtering platform at the 2020 IPVM...
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...
PRC Warns Against China Video Surveillance Hacks, Hikvision Targeted on Feb 14, 2020
Hackers are targeting China video surveillance manufacturers and systems,...
White House Trade Advisor Calls Hikvision "Very Evil Company" on Jun 24, 2020
White House trade advisor Peter Navarro has called Hikvision a "very evil...
NetPosa's Terrible Situation Worsens on May 19, 2020
NetPosa is fighting for its existence as the situation worsens for what was...
FLIR A Series Temperature Screening Cameras Tested on Jun 04, 2020
FLIR is one of the biggest names in thermal and one of the most conservative....
Hanwha Presents AI Analytics and First 8K Camera on May 11, 2020
Hanwha presented their AI Analytics and the "Industry's First 8K" camera at...
LSP Presents 2nd Generation FP Power Supplies on Apr 29, 2020
Life Safety Power (LSP) presented its FP2 power supply in the April 2020 IPVM...
FLIR Presents Dual Spectrum High Security Focused PTZ on May 01, 2020
FLIR presented its Elara DX-Series bispectral, visible and thermal, PTZ...
The Next Hot Fever Detection Trend - $100 Wall-Mounted Units on Jul 06, 2020
The first wave of the booming fever detecting market was $10,000+ cameras,...

Recent Reports

Taiwan Lilin NDAA Compliant Cameras Tested on Aug 13, 2020
Taiwan-based manufacturer Lilin is taking direct aim at Dahua and Hikvision...
White House Expands Dahua Hikvision Blacklist To Federal Funding on Aug 13, 2020
The White House is expanding the NDAA to blacklist anyone who "uses" banned...
Actual Coronavirus Testing Options Examined on Aug 13, 2020
Fever cameras have emerged as an indirect and flawed way to test for...
Video Analytics Online Show September 2020 Opened - Axis, Avigilon, Bosch, BriefCam, Genetec, Milestone + 30 More on Aug 12, 2020
IPVM's sixth online show will feature 35+ Video Analytics companies...
The German Company Powering Many China Temperature Tablets (Heimann) on Aug 12, 2020
Many fever tablet suppliers market German-made Heimann thermal sensors while...
Salesforce Drops Dahua and Hikvision on Aug 12, 2020
Salesforce has dropped Dahua and Hikvision as customers, forcing the two mega...
Access Control Course Fall 2020 - Register Now on Aug 12, 2020
IPVM offers the most comprehensive access control course in the industry....
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...