FLIR Security Business Struggling

By Brian Karas, Published on Aug 02, 2017

FLIR's security division is an ambitious mix of FLIR's core thermal business plus multiple acquisitions, including of retail / consumer offering Lorex, enterprise DVTel and camera startup ISD.

Right now, it is struggling.

In this note, we examine FLIR's financial results for the security division, share feedback from FLIR management and examine FLIR's future.

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

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

** ****** **** ****'* Q2 ******** **** [**** no ****** *********], **** decline *** ********* ********** to *** *****-******* ******** sold ** ********* ******* retail *******:

*** ******* *********** ********* 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, ******* *** *********** in ** ****'* ******** update [**** ** ****** available] ** ****** ***** experience, ************ **** ***** cameras:

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

Comments (10)

Good.  FLIR has tarnished it's name by hawking cheap low-end FLIR (aka Digimerge) systems and accelerated the race to the bottom.  I hope they feel the pain in staffing costs for technical support for all those Costco systems they sold, undercutting the rest of the industry.  Time for FLIR to die a slow death, HIK and Axis sell Thermal cameras, so we can all just wave them goodbye and move on.

Axis has really stepped up their thermal game, a lot of their analytics far outperform what FLIR offers. I guess they may be feeling the competition after so many years of being the big name in infrared imaging. I hope they come back strong...especially since I've picked up at least $500k worth of their FC series cameras over the last few years.

When asked specifically about the DvTel business on the investor call, FLIR's new CEO dodged providing specifics on that segment of the Security business

He dodged to the left and ran away faster than Usain Bolt.

Sad too because when I looked at the VMS awhile back, it actually looked like a pretty decent product. Would be a shame if the VMS suffers because FLIR can't figure out their hardware side.

We experienced significant quality related issues with their SMB line and the DVTel rollout post acquisition as FLIR was not managed particularly well. In all, an expensive and disappointing experience.

Too funny about the poll results, unless your ASIS, because these results are not a positive sign for them:

Hmmm. Could it be some of FLIR's reps, perhaps? I know of at least one who, although he might think he is well liked and respected, isn't. A little too well known for being a  back-stabber. I find it completely amazing that somebody could act like this guy has and not think it will come back to haunt you at some future time. Or that others won't also play the "smile to your face and act like your friend" game when they actually dislike you.

FLIR's previous ASIS 2017 booth is now listed as an "ASIS Collaboration and Networking Zone, sponsored by Anixter".

Not a good sign for ASIS that they could not get another exhibitor to take a booth in such a prime location, and right next to Hikvision (who will surely draw traffic).

There are a lot of ASIS related booths, see:

Also 35 booths still available:

Its pretty close to the main entrance.

Read this IPVM report for free.

This article is part of IPVM's 6,596 reports, 889 tests and is only available to members. To get a one-time preview of our work, enter your work email to access the full article.

Already a member? Login here | Join now

Related Reports

Infinova, March Networks and Swann H1 2020 Financials Examined on Sep 02, 2020
While Dahua and Hikvision, helped by fever camera sales, are recovering from...
FLIR CEO: Many New Fever Entrants "Making Claims That The Science Just Won't Support" on Sep 22, 2020
FLIR's CEO joins a growing number calling out risks with fever / screening...
ADT Slides Back, Disappointing Results, Poor Commercial Performance on Aug 06, 2020
While ADT had an incredible start to the week, driven by the Google...
FLIR Stock Falls, Admits 'Decelerating' Demand For Temperature Screening on Aug 07, 2020
Is the boom going to bust for temperature screening? FLIR disappointed...
Six Flags' FDA Violating Outdoor Dahua Fever Cameras on Oct 26, 2020
As Six Flags scrambled to reopen parks amid plummeting revenues caused by the...
FLIR Markets Windows Temperature Screening, Violates IEC And Causes Performance Problems on Jul 17, 2020
FLIR, one of the largest thermal screening manufacturers, is marketing...
Facial Recognition: Weak Sales, Anti Regulation, No Favorite, Says Security Integrators on Jul 07, 2020
While facial recognition has gained greater prominence, a new IPVM study of...
Hikvision Returns To Growth Driven By Overseas Fever Cameras on Jul 29, 2020
While Hikvision's revenue fell in Q1 2020, it rebounded in Q2 attributed to...
Uniview H1 2020 Financials Examined on Sep 08, 2020
While Dahua and Hikvision, helped by fever camera sales, are recovering from...
2020 Mid Year Video Surveillance Industry Guide on Jul 27, 2020
The first half of 2020 has been shocking, for the world generally, and for...
Access Control and Video Integration Statistics 2020 on Oct 08, 2020
Video Surveillance and Access Control are two of the most common security...
Worst Manufacturer Technical Support 2020 on Oct 15, 2020
4 manufacturers stood out as providing the worst technical support to ~200...
Costar Technologies / Arecont H1 2020 Financials Examined on Sep 16, 2020
Costar's financial results have been hit by the coronavirus with the company...
Anyvision Raises $43 Million, Focusing on Access Control And Remote Authentication on Sep 04, 2020
While Anyvision has had a tumultuous 2020 with significant layoffs, the...
Monitoring Alarm Systems From Home - Innovation or Danger? on Oct 13, 2020
Remote monitoring by alarm companies since COVID-19 is bringing cost savings...

Recent Reports

Consultants Online Show LIVE Today! on Oct 27, 2020
IPVM's 7th online show will feature 20+ consultants and recruiters presenting...
Eagle Eye Networks Raises $40 Million on Oct 27, 2020
Eagle Eye has raised $40 million aiming to "reinvent video...
Hikvision Q3 2020 Global Revenue Rises, US Revenue Falls on Oct 27, 2020
While Hikvision's global revenue rises driven by domestic recovery, its US...
VICE Investigates Verkada's Harassing "RawVerkadawgz" on Oct 26, 2020
This month, IPVM investigated Verkada's sexism, discrimination, and cultural...
Six Flags' FDA Violating Outdoor Dahua Fever Cameras on Oct 26, 2020
As Six Flags scrambled to reopen parks amid plummeting revenues caused by the...
ISC Brasil Digital Experience 2020 Report on Oct 23, 2020
ISC Brasil 2020 rebranded itself to ISC Digital Experience and, like its...
Top Video Surveillance Service Call Problems 2020 on Oct 23, 2020
3 primary and 4 secondary issues stood out as causing the most problems when...
GDPR Impact On Temperature / Fever Screening Explained on Oct 22, 2020
What impact does GDPR have on temperature screening? Do you risk a GDPR fine...
Security And Safety Things (S&ST) Tested on Oct 22, 2020
S&ST, a Bosch spinout, is spending tens of millions of dollars aiming to...
Nokia Fever Screening Claims To "Advance Fight Against COVID-19" on Oct 22, 2020
First IBM, then briefly Clorox, and now Nokia becomes the latest Fortune 500...
Deceptive Meridian Temperature Tablets Endanger Public Safety on Oct 21, 2020
IPVM's testing of and investigation into Meridian Kiosk's temperature...
Honeywell 30 Series and Vivotek NVRs Tested on Oct 21, 2020
The NDAA ban has driven many users to look for low-cost NVRs not made by...
Ubiquiti Access Control Tested on Oct 21, 2020
Ubiquiti has become one of the most widely used wireless and switch providers...
Avigilon Aggressive Trade-In Program Takes Aim At Competitors on Oct 20, 2020
Avigilon has launched one of the most aggressive trade-in programs the video...
Mexico Video Surveillance Market Overview 2020 on Oct 20, 2020
Despite being neighbors, there are key differences between the U.S. and...