Cernium Layoffs and Restructuring

By: John Honovich, Published on May 02, 2011

According to tips provided to us and confirmation from a source close to the company, video analytics manufacturer Cernium has made sizeable layoffs and restructured their operations.

Historically, Cernium [link no longer available] focused on the enterprise / government market with products such as Perceptrak (a centralized video analytics offering) and ExitSentry (for airport checkpoint monitoring).

In the past few years, Cernium has expanded into the consumer / residential market with their Archerfish product line - an IP camera with embedded analytics and on-board storage that is managed by Archerfish. For background, review our in-depth field test results and criticisms from Amazon reviewers.

One tip provided to us claimed that a few dozen employees were laid off including the CEO. A source close to the company would not confirm or deny the specific points but did note, "Cernium is committed to growing their security presence and as such are 'moving away from some of their legacy offerings'. Cernium should be issuing a press release within the next 24 hours regarding these new developments."

It would appear, then, that Cernium is shifting more towards the consumer market. Operating in both the enterprise and consumer markets is difficult for most companies to manage. We believe this has been a challenge for Cernium. Moreover, the enterprise video analytics market has not been robust over the last few years (Cernium's Perceptrak is similiar in market adoption and technology to Vidient which recently failed).

[Update May 5, 2011: No official release or word from Cernium yet but another tipster reports that the focus will not be Archerfish but CheckVideo (alarm verification). This person also confirmed layoffs and exit of key management team members.]

[Update May 9, 2011: No official release from Cernium. However, the management team page from Cernium's website has been removed - the first notable public change from Cernium.]

On the other hand, their approach to the consumer market has major concerns. While Cernium's Archerfish is the only VSaaS offering to integrate analytics, it is one, if not the most expensive offerings in it segment - at about $300+ online pricing. The main justification for the premium is the analytics. However, we are skeptical about consumer's interest in using analytics and, more importantly, the ability of those analytics to work robustly enough to satisfy consumer's need to avoid nuisance notifications.

We believe Cernium has raised over $30 Million in VC funding in the past 10 years (see our Investments Directory for references). Despite this, we estimate the company's annual revenue at less than $10 Million and would be surprised if Archerfish revenue is more than $1 - $2 Million for 2011. It is likely that Cernium is projecting a significant ramp up of Archerfish sales. However, given our concerns noted, we think Archerfish will struggle without major product improvements.

Comments : PRO Members only. Login. or Join.

Related Reports

Camect "Worlds Smartest Camera Hub" Tested on Oct 18, 2019
Camect is a Silicon Valley startup that claims the "Smartest AI Object Detection On The Market", detecting not only people and vehicles, but...
Consumer IP Camera Analytics Shootout - Arlo, Google / Nest, Amazon / Ring, Hikvision / Ezviz, Wyze Cam, Yi Home on Sep 26, 2019
AI analytics are hitting the mainstream in the consumer camera market, with entrants Wyze and Yi Home releasing free people detection on their...
RealNetworks SAFR Facial Recognition Profile on Sep 25, 2019
RealNetworks entered the surveillance market by giving away their analytics to schools for free, and is now targeting large commercial users with...
Hikvision Acusense Analytics Tested on Sep 23, 2019
Hikvision touts "The Magic Behind It All" in their new Acusense line are 'deep learning algorithms' inside these cameras and recorders. But how...
Directory of 70 Video Surveillance Startups on Sep 18, 2019
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly known. 2019...
Vivotek "Neural Network-Powered Detection Engine" Analytics Tested on Sep 17, 2019
Vivotek has released "a neural network-powered detection engine", named Smart Motion Detection, claiming that "swaying vegetation, vehicles passing...
Yi Home Camera 3 AI Analytics Tested on Sep 10, 2019
Yi Technology is claiming "new AI features" in its $50 Home Camera 3 "eliminates 'false positives' caused by flying insects, small pets, or light...
AI Video Surveillance (Finally) Goes Mainstream In 2020 on Sep 03, 2019
While video surveillance analytics has been promoted, hyped and lamented for nearly 20 years, next year, 2020, will be the year that it finally...
Scylla AI Video Analytics Company Profile on Aug 29, 2019
Scylla, an AI analytics startup, says they are targeting 1 Billion dollar valuation in 5 years and it "is not rocket science" to detect weapons and...
China Dahua To Replace Their Software With US Pepper on Aug 22, 2019
What does a US government banned company do to improve its security positioning in the US? Well, Dahua is unveiling a novel solution, partnering...

Most Recent Industry Reports

Government-Owned Hikvision Wants To Keep Politics Out Of Security on Oct 21, 2019
'Politics' made Hikvision the goliath it is today. It was PRC China 'politics' that created Hikvision, funded it, and blocked its foreign...
Integrated IR Camera Usage Statistics 2019 on Oct 21, 2019
Virtually every IP camera now comes with integrated IR but how many actually make use of IR or choose 'super' low light cameras without IR? In...
Alarm Veteran "Demands A Criminal Investigation" Of UL on Oct 18, 2019
The Interceptor's Project pressure against UL continues to rise. Following Keith Jentoft's allegation that "UL Has Blood On Their Hands", Jentoft...
Camect "Worlds Smartest Camera Hub" Tested on Oct 18, 2019
Camect is a Silicon Valley startup that claims the "Smartest AI Object Detection On The Market", detecting not only people and vehicles, but...
Hikvision Global News Reports Directory on Oct 17, 2019
Hikvision has received the most global news reporting of any video surveillance company, ever, ranging from the WSJ, the Financial Times, Reuters,...
Camera Calculator V3.1 Release Improves User Experience on Oct 17, 2019
IPVM has released a new version of our Camera Calculator, V3.1, with significant user experience improvements, a new development plan, and an...
Securing Access Control Installations Tutorial on Oct 17, 2019
The physical security of access control components is critical to ensuring that a facility is truly secure. Otherwise, the entire system can be...
Access Control Course Fall 2019 - Last Chance on Oct 17, 2019
Register Now - Fall 2019 Access Control Course. Thursday, October 17th is the last day to register. IPVM offers the most comprehensive access...
US DoD Comments on Huawei, Hikvision, Dahua Cyber Security Concerns on Oct 16, 2019
A senior DoD official said the US is "concerned" with the cybersecurity of Hikvision, Dahua, and Huawei due to "CCP" (China Communist Party)...
Pelco Sarix Pro3 Camera Tested on Oct 16, 2019
Pelco has released their Sarix Professional Series 3 cameras, claiming "more security detail in challenging scenes with excellent low light and...