CNB Company Shakeup

By: John Honovich, Published on Aug 29, 2013

Korean company, CNB, is one of the larger analog manufacturers specializing in OEMing to large Western conglomerates as well as selling their own budget line products. Now, CNB is going through a major shakeup, with a significant change in ownership and the acquisition of a rival. In this note, we break down what is happening.

CNB Background

2012 revenue was ~$87 million USD, down notably from ~$110 million in 2011 and less than 2009 revenue of ~$98 million.

CNB offers analog, HD IP and HD SDI but has not really distinguished itself in either HD area, especially as Taiwanese and Chinese rivals have made significant inroads (e.g., Dahua, Hikvision, Viviotek).

CNB Financial Moves

CNB has acquired 51% of iCantek, which is another Korean manufacturer, primarily an OEM. CNB paid ~$3 million for that stake. iCantek reported 2012 revenue was ~$9 million, making it far smaller than CNB.

However, CNB's official acquisition report indicates the reason was to strengthen their IP camera offerings. We do not know how specifically this will work.

Additionally, and perhaps more important, our sources indicate, and a public filing notes, that there has been a change in the largest shareholder. The founders have sold to a private equity fund.

One source familiar with the Korean market suspects that the board became tired of internal issues and declining profits, opting to change control. In particular, iCantek is seen as having strong engineering resources for IP cameras, a valuable asset to compliment CNB's depleted staff.

Future?

While Korean manufacturers have historically been viewed as having higher quality than their Chinese and Taiwanese counterparts, the surge of newer entrants has increased competition for CNB. It will be interesting to see if these recent financial moves can help CNB regroup and better compete for HD camera sales.

Comments (0) : Members only. Login. or Join.

Related Reports

Video Surveillance History on Jul 19, 2019
The video surveillance market has changed significantly since 2000, going from VCRs to an emerging AI cloud era. The goal of this history is to...
Surging Wyze Raises $20 Million, Threat To Chinese Brands on Feb 01, 2019
The Seattle Startup that is disrupting consumer IP cameras with $20 pricing has just raised $20 million dollars (SEC Filing and company press...
Avigilon USA Factory Visit Report on Apr 01, 2019
In a building that looks more like corporate offices than a 'factory' and just down the road from suburban housing developments is Avigilon's USA...
The Embarrassing Story of ISC West's Best New IP Camera on Apr 24, 2019
A sad but simple situation: Only 2 companies paid SIA the thousands of dollars required to compete for the best new 'cameras IP' The judges...
Verkada Gets Half Billion Dollar Valuation on Apr 26, 2019
Last week, when we profiled Verkada (The Fastest Growing Video Surveillance Sales Organization Ever - Verkada), we predicted they would raise $40...
Hanwha Techwin Dropping Huawei on Jun 06, 2019
Hanwha Techwin is dropping Huawei Hisilicon from all of their products, the company has confirmed to IPVM. Inside this note, we examine Hanwha's...
2019 Mid-Year Video Surveillance Guide on Jul 01, 2019
IPVM's new 400+ page Mid-Year Industry Guide brings all of these issues and events together in a single resource to read and review. It can be...
Fujifilm Expanding Into Video Surveillance on Jul 26, 2019
While Sony continues to fade out of the video surveillance market and Canon continues to make huge investments into acquiring video surveillance...
Vivotek Revenue Soars on Aug 05, 2019
Vivotek's revenue has soared so far in 2019, growing 45%. Inside this note, we examine import records and see who is driving Vivotek's growth...
Stanley Makes "Multi-Million Dollar Investment" Into Banned Hikvision Products on Aug 09, 2019
Just days from the US government ban going into effect, US mega-corporation Stanley has dramatically increased its imports of banned Hikvision...

Most Recent Industry Reports

Hazardous & Explosion Proof Access Control Tutorial on Feb 27, 2020
Controlling access to hazardous environments requires equipment meeting specific ratings that certify they will not start fires or will not...
Motorola / Avigilon Drops ISC West on Feb 26, 2020
Motorola Solutions has pulled out of ISC West 2020 effective immediately, because of coronavirus concerns, IPVM has learned. This is done amidst...
Cancel or Not? Industry Split Over ISC West on Feb 26, 2020
The industry is split, polarized, over whether ISC West 2020 should run or be canceled. New IPVM survey results of 400+ respondents show heated...
Coronavirus Hits Sony, Bosch Says Switch on Feb 26, 2020
Sony's fall in video surveillance has been severe over the past decade. Now, they may be done. In this note, we examine Bosch's new...
Video Surveillance Cameras 101 on Feb 25, 2020
Cameras come in many shapes, sizes and specifications. This 101 examines the basics of cameras and features used in 2020. In this report, we...
Favorite Video Analytic Manufacturers 2020 on Feb 25, 2020
Video analytics is now as hot as ever, driven by the excitement of advancing deep learning offers. But what are actually integrator's...
Latest London Police Facial Recognition Suffers Serious Issues on Feb 24, 2020
On February 20, IPVM visited another live face rec deployment by London police, but this time the system was thwarted by technical problems and...
Masks Cause Major Facial Recognition Problems on Feb 24, 2020
Coronavirus is spurring an increase in the use of medical masks, which new IPVM test results show cause major problems for facial recognition...
Every VMS Will Become a VSaaS on Feb 21, 2020
VMS is ending. Soon every VMS will be a VSaaS. Competitive dynamics will be redrawn. What does this mean? VMS Historically...
Video Surveillance 101 Course - Last Chance on Feb 20, 2020
This is the last chance to join IPVM's first Video Surveillance 101 course, designed to help those new to the industry to quickly understand the...