Cernium Layoffs and Restructuring

Author: 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 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

Huawei Admits AI "Bubble" on Oct 16, 2018
A fascinating article from the Chinese government's Global Times: Huawei’s AI ambition to reshape industries. While the Global Times talks about...
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...
Dahua Face Recognition Camera Tested on Oct 15, 2018
Dahua has been one of the industry's most vocal proponents of the value that AI creates: As part of this, Dahua has released a facial...
IACP 2018 Police Show Final Report on Oct 08, 2018
IPVM went to Orlando to cover the 2018 IACP conference, the country's largest police show (about as big as ASIS), examining the 700+...
Avigilon Announces AI-Powered H5 Camera Development on Sep 19, 2018
Avigilon will be showcasing "next-generation AI" at next week's ASIS GSX. In an atypical move, the company is not actually releasing these...
Favorite Request-to-Exit (RTE) Manufacturers 2018 on Sep 19, 2018
Request To Exit devices like motion sensors and lock releasing push-buttons are a part of almost every access install, but who makes the equipment...
Amazon Ring Spotlight Cam Tested on Sep 17, 2018
Amazon's Ring has released their latest camera entry, the Spotlight Cam, which we bought and tested in our Consumer IP Camera Analytics...
VMS Export Shootout - Avigilon, Dahua, Exacq, Genetec, Hikvision, Milestone on Sep 13, 2018
When crimes, accidents or problems occur, exporting video from one's video surveillance system is critical to proving incidents. But who does it...
US DARPA Investing $2 Billion In AI on Sep 11, 2018
The US Defense Advanced Research Projects Agency (DARPA) is granting more than $2 Billion to companies developing new AI technologies. The money...
Ambarella on Computer Vision and US Hikua Ban on Sep 10, 2018
Ambarella, a widely-used video surveillance component supplier, is betting on the rise of computer vision and is already seeing a sales impact from...

Most Recent Industry Reports

Hanwha Dual Imager Dome Camera Tested (PNM-7000VD) on Oct 18, 2018
Hanwha has introduced their first dual-imager model, the PNM-7000VD, a twin 1080p model featuring independently positionable sensors and a snap-in...
Camera Height / Blind Spot Added to IPVM Camera Calculator on Oct 18, 2018
IPVM has added camera height and blind spot estimation to the Camera Calculator. This is especially helpful for those who need to mount cameras up...
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...
Best Alternatives to Banned Dahua and Hikvision on Oct 17, 2018
With the US government ban and a growing number of users banning Dahua and Hikvision, one key question is what to use for low cost? While Dahua and...
Video Quality / Compression Tutorial on Oct 17, 2018
While CODECs, like H.264, H.265, and MJPEG, get a lot of attention, a camera's 'quality' or compression setting has a big impact on overall...
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...
Integrator Laptop Guide on Oct 16, 2018
This 18-page guide provides guidance and statistics about integrator laptop use. 150 integrators explained to IPVM in detail about their laptops,...
Huawei Admits AI "Bubble" on Oct 16, 2018
A fascinating article from the Chinese government's Global Times: Huawei’s AI ambition to reshape industries. While the Global Times talks about...
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...
Dahua Face Recognition Camera Tested on Oct 15, 2018
Dahua has been one of the industry's most vocal proponents of the value that AI creates: As part of this, Dahua has released a facial...

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