GVI Security Shut DownBy John Honovich, Published Aug 30, 2011, 08:00pm EDT
US surveillance manufacturer and distributor GVI Security [link no longer available] has shut down. GVI is best known historically for their distribution of Samsung surveillance products and more recently for their introduction of the AutoIP line including the Razberi NVR. In this note, we examine the company's positioning, what happened and the potential for the company's products and customers.
UPDATE NOV 2011 - A new company, Razberi Technologies has been launched. This company has acquired the technology from GVI.
Our sources indicate that the company shut down after their investor, GenNx360 [link no longer available], declined to make any further investment into the company. This was unexpected by management and partners.
In the past year, GVI stopped distributing Samsung. The ending of this relationship resulted in a steep revenue decline for GVI. Simultaneously, GVI was developing its own AutoIP product portfolio and was ramping up distribution of LG. However, while GVI was growing the new lines, the company was cash flow negative and, with their investor declining to provide further investment, the company was shut down.
Currently, GVI is winding down the business. A small staff is supporting customers and suppliers temporarily.
We find this event to be surprising. While the loss of Samsung was a significant drain, the AutoIP line has potential. GVI was establishing itself as a choice for those wanting simpler, less expensive ways to deploy IP. Both the Razberi with a built in switch and automatic camera configuration and the camera lines with fairly low pricing had solid positioning.
We would expect that the AutoIP line would be sold to someone at some point as IP video is a growth market and GVI's offering targeted a relatively underserved niche.
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