Video Developer Digital Barriers Selling Off Its Video Business

By: Brian Karas, Published on Oct 31, 2017

~92% of Digital Barrier's $32M USD revenue is from video surveillance.

The company is most well known for its products such as perimeter detection analytics (that they OEM to Axis), face recognition and EdgeVis low-bandwidth streaming platform.

But all of those are being sold off because Digital Barriers sees greater promise outside of the video surveillance market, in its ThruVis platform (which we recently covered).

In this note, we examine the terms of the deal, the motivation of it and the challenges and outlook for the reformed company.

~**% ** ******* *******'* $32M *** ******* ** from ***** ************.

*** ******* ** **** well ***** *** *** products **** ** ********* detection ********* (**** **** OEM ** ****),**** ************************-********* ********* ********.

*** *** ** ***** are ***** **** *** because ******* ******** **** greater ******* ******* ** the ***** ************ ******, in ********** ******** (***** ** recently *******).

** **** ****, ** examine *** ***** ** the ****, *** ********** of ** *** *** challenges *** ******* *** the ******** *******.

[***************]

Deal *******

******* ******** **** **** essentially ************* ******* ** ***************** ******* ********** £**.** (~$**.** ***). This ******** ~*** *********, product *****, ************ ********, and **** *** ********* name. ***** *** **** completes ******* ******** **** become * ******* *******. The ********* ****** ******* to *** ******* ******* will **** **** *** publicly ****** ********* ******, which **** ** ***************. ** ******, **** process **** ******* ************** ** ********** ******* by ******* ******** ** 2012, ****** **** ********** now ***** *** ******** traded ******, *** ******* Barriers *** ******* ******.

Digital ******** ******** ** ******

********* ** ******* ******** video ******** ****** *** expect ** *** *** interruptions ** ******* ************, according ** *** *******. Digital ******** ********* ********** with *** ***** ******** are ******** ** ****** onboard ***** *** **** in ********* ******* ***** and ********* ** ***** pre-sale ***********.

Executive *****

******* ********' ***,*** *********** ****** ** **** of *** ******** ******* Barriers ************. ********** **** be *** ** ******* Barriers' ******* ***-********* ********, Tom *****, *** ******** *****.

Digital ******** **** *******

*** **** ********* ******(*** * ****** ****-*** of ***** **, ****) shows *** **** ******** of ******* (£**.**) ****** from *** ***** ******** division, **** **** £** coming **** *** ******* product, * **** ** revenue ** ~**%:

******* ***** ******* ******* as ****, *** ******** in ******* ***** ******* was ********* ********** ** the*********** ** *******, * **-***** ********* integrator **** ******** ********** solutions ********* ** *** US **********.

******* ******** ******** ** overall **** ** £**.**, almost **** ** ***** is ******* ** ********* ********** ************* *** ***** ********. Other ******* ************ ** the **** **** ** ~60% ******** ** ************** costs ** *** ***** business, *** * ******** in ***** ******* (**% in **** **. **% in ****). **** ** these *** ********* ******* to *******, ****** **** while ******* ****** ******** revenue ******, ** ** a ***** ****** ********.

Banking ** ******* *********** ******

******* ************** ** *** ** an ********** *******, *** **** **** partnership, ***** **** ******** made **** *** *********** funding *** *** ******* security ******* ** ******* the ******* ******* ** for *********** ****** ** coming *****.

************, *** ******* ********* that ** ******* *********** investments **** ** ********, allowing **** ** **** margins, ****** ****** ** drive ******** (******* **** is ~$***,***), ** ****:

*** ******* ******* ********** to ** ********** ****** a ****.

ThruVis ************ ********

*** ******* ********* **** some ********** ************ ****** be ********, **** ** in-house *********** ** ********* for ******* *** ********** detection. ************, **** **** be ******* ** * ThruVis ************* ********* ** the **, ******** *** product ** ** ******** "Made ** ***".

Rationale *** ****

*** ***** ******** *** market *** *** ******* product ** ************* ********* from *** ***** ******** division, ***** ********* ********** to *** ******* ** terms ** *********** ***** teams, *&*, *** ******* corporate ********, ********* ** an *********. ** ********* the *******, **** ******** can ****** ***** ** its **** ****** *** value *********** *************.

Analysis ** ******* ******** ****

*** ***** ********* ****** has ****** ************ *******, though ** **** ***** generally ******** ******** **** users ** ******* ******** products ** **** *****. The **** *** ******* was **** ** *** ~$36M *** ** ********* business **** *** *** showing * ****** ** significant, ****** **** ** likely *** ** ***** part ** *** ******* business. ***** ******* ********* by * ** **** after *** **** **** make ** ****** *** that ******** ** ** potentially ****** ****, ** acquire, ***** ************* ********** if ******.

Outlook *** **********

********** ** *** ******* are ******* ******* *** Thruvision's *********, ******* *** company **** *********** ** a *-******* *********, **** the ******** ** **** product **** ***** * very ********* ********* ******. Further, ****** ** ****** to **** ******** ** terrorist ******** *** ******** of ***** ****** ** mass **********. ***** ***** factors *** ******** ** subside ** *** *****-****, they *** **** ******* that ********** **** **** very ****** ******* ** impact ********, *** ** threat ******, ** ******* for ****-********* *******, **** down, ********** **** ****** be ********** ********.

Comments (1)

**** ******** **** ***** *** ********** ***.

* ***** *** **** ******* **** * *** ******* ** DB (****-**). * ****** **** **** **** *** ******* *** properly ****** ** ***** ** *****.

** *** **** * ******* **** *** *** **** **** the ** *** ** *********** *** ** ******** *** '** TO' ****** ******** *******.

****** *** ******* ** ************ *********, ** *** *** ***** a * **** ******* ****** *** ** *** ******** ** see **** **** **** ** ** **** ***** ** ********* can ******* ***** **** ****** **** ***** ******* ******.

*** ******* **** **** **** ***** ***.**********.***

****** ** ** ******** ********** ***

**** ** ** ******* ***************

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