FLIR Security Business Struggling

****'* ******** ******** ** an ********* *** ** FLIR's **** ******* ******** plus ******** ************, ********* of****** / ******** ******** Lorex,********** ************** ******* ***.

***** ***, ** ** struggling.

** **** ****, ** examine ****'* ********* ******* for *** ******** ********, share ******** **** **** management *** ******* ****'* future.

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

Q2 ******** *******

****'* ******** ******** **** an ****** *** ** revenue ** ** ****, falling **%, ********* * weak **'* **** *%. Q2 ******** ******* *** $49.7M, **** **% **** 2016's $**.**, *** ****** back ******'* $**.**.

******** **** ****'* ** Investor ****, **** ******* *** primarily ********** ** *** Lorex-branded ******** **** ** consumers ******* ****** *******:

*** ******* *********** ********* in *** ****** *******, and ****** ** ****** for ***** ********. *******, assuming ***** *** ***** orders ** ********, ******* would **** **** ~$***, still **** ~**%

**** **** **** **** of *** * ******* line ******** ** *** Security ******** (******* *******, retail/Lorex, ***/******* **** ******* ADI, *** **********/****** ***** products) **** *** ******* division ****** ****** ******.

Security **** ******* *********

** ******** **** *** thermal ******** ** ***** FLIR's ******* ******* ** the ******** ********, ************ ~50% ** ***** *******. Another **-**% ***** **** the ***** ****** *******, and *** ******* ********** branded ** **** *** sold ******* ************ ******** like ***. *** *********, and ****** **** **** 20% ** ******* *******, is *** ***** ******* line.

Thermal ********** ******

*** ********* **** ** FLIR's ******** ******** ** its **** ******* ****** products. ***** ******** *** often **** ** ******** infrastructure ************, *** ** other ********* ***** ***** is *** ****** *** top *********** ******. ** this ******, **** *** deep ********* ** **** product *** ***** *****, which ********* ** **** segment ***** ******. *****, the ******* ****** **** new ******* ******** **** manufacturers **** ********* *** putting ********* ******** ** the ******* *******.

Lorex **********

***** ** ** *** middle ** *** **** to *** ******. **** of *** ******* **** is********* ***** ********, ******* ****'* ****** demands **** ** ********* to ******* **** * multitude ** ***** ***** OEM's **** *-***, ** other ******* ******** **** Foscam *** ******* **** are ****** ********* ** Amazon, ** **** ********* Lorex ** ******, **** Depot, *** ***** ******.

** ******* **** ** these ******, **** *** added ** ******* ** the ***** ****, *** also********** * "****-****" ********** *** ******* **** contains ******* ************ *** found ** ***** ********, giving **** * **** distinct ********. ** ***** that **** ****** ***** provide ***** **** **** differentiation **** ***** *** systems.

**** **** ****** **** they *** ******* ** get **** ********* ** the ******* **** *** retail ******** ** ****** out *** "*********" ** the ***** ****, ***** can ***** ***** ********* revenue ******* *************, ** this ******* ******.

DVTel *********** **********

*****, ******** *.* ***** ago, ** ***** *** significantly ****** *****. ******* in **** ******* *** been ****** ****, ********* to ****. ****** *** company ******** ******* *.* of *** ***** "********" VMS ******* **** ****, the ******* **** *** not **** *** ***** improvements **** *** ** apart **** **** ** available **** ***********.

**** ***** ************ ***** the ***** ******** ** the ******** ****, ****'* new *** ****** ********* specifics ** **** ******* of *** ******** ********, talking ******* ***** *** thermal ******** ******:

**** ********** ** *** Latitude ******* **** **** incorporated **** ****'********* ******* *** ******* software, ***** ** ********* sold ** ***** ******** division. ***** **** ******** the ******* *******, ** does *** **** ******** revenue.

ISD ** ***** *******

**** **** *** *** team ** "******** *******" on ****-********** ******* *******, some ** ***** *** company ******* ** ******** in ** ****. ***** this ** * **** sign *** *** ******* division, ** ** ************* relative ** *** ***** Security ******** *****, ************ the ***** *******, ***** could ******* **** **** advanced ******* *** ****** options ** **** ** competitive **** ***** ***-**-*** solutions **** ********.

**** ******** *** ** 2016,******* *** *********** ** Q2 ****'* ******** ******** ****** ***** **********, particularly **** ***** *******:

**** *** ***** ** network/encoding ****** ** **** thermal ******* **** *** years, ***** *** *** team ** ****** ******** on, ***** ***** ************.

Out ** ****

**** ********* **** *** pulling *** ** ****, calling ** * "***** sell", ****** ******* **** **** ***** map***** ***** **** ** an *********. **** ***** intends ** ******* ** ISC ****, *** *** not ******* * ******** about ********** ** **** 2018.

*********** **** ***** **** booths ********* ******* ******** and ***** ***-**** ********* commitments **** *** ***-**********, this ***** **** **** may ** ******* ********** all ******** ** *** Security ********, ******** ******* spending, **** ** ** means ****** *** ** funds ******* ********* ** the ****.

************, **** ** * hit ** ****, ****** a **** **** ********* with * ****-***** ***** does *** **** **** inspire ********** **** ***** manufacturers. ****'* ****** ***** joins *** ***** **+ ASIS ****** ***** ******.

FLIR ** ********

*** ******* ******** **** the ******* ****** **** Q2 *** ******** ** Q3, ****** **** *******, not ****, *******. ************, they **** **** *** product ************* ** *** thermal *** ********** ******** in ********** **** **** boost ***** *********, *** contribute ** ** ******* stronger **.

Outlook *** ****

****'* ********* ** *** security ****** *** ****** too ****, *** *** company ***** ******* **** focusing **** ** ***** most **********, ** *********, segments. **** ** *** bottom ****** *** ********* the ******** *******, ** combat **** ************* **** taken ******* **********. **** are ************* **** ******* on *** ***-****/****-****** ******** (e.g.: *****), ***** ****** focus **** ** *** medium ******** ***/** ********** segments (*.*.: ********), *** a ***** *** ***** on ********* ************ ** niche ******** **** ** analytics (*******) ** *****-****** cameras (*******). ****, *******, is ********** ** ***** all ** ***** *****, offering ********** **** *** retail **** ** ****** advanced ******* *******. **** strategy *** **** ** difficult ** ***** *** in *** *** *******, and ***** ********** ** creating * ******* ******* image.