ICx Company Profile

By John Honovich, Published Aug 15, 2010, 08:00pm EDT

This note overviews ICx's product offerings and financial breakdown, including an analysis of their video analytic and PSIM products. In August, 2010, FLIR acquired ICx [link no longer available] at a valuation of $236 Million (acquisition price of $274 Million - $38 Million cash in bank).

In the 12 months prior to the acquisition, ICx's revenue was approximately $160 Million, setting the Price to Revenue ratio at just under 1.5x (low comparatively for the industry).

Reporting H1 2010 results [link no longer available], ICx revenue dropped over 16% compared to H1 2009 (from $92 down to $77 Million).

ICx reports on 3 main business segments [link no longer available]. The March 2010 ICx Company Overview [link no longer available] (Note: 26 MB) breaks down the positioning of each unit and the 2009 ICx Financial Report [link no longer available] provides financial details.

  • Detection [link no longer available]: The largest of the 3 segments, this includes chemical, biological, radiological, nuclear and explosive detectors (CBRNE).  2008 total revenue was $91 Million with $55 Million from products and the remainder from contract R&D.
  • Surveillance [link no longer available]: ICx offers a variety of IR, microwave and millimeter products. 2008 revenue was about $50 Million with half deriving from product sales and $16 Million from services.
  • Solutions: The smallest of the 3 units, this includes ICx's Cameleon PSIM [link no longer available] offering and a variety of other software packages [link no longer available]. 2008 total revenue was $28 Million but only $8 Million came from products while the remainder was from services.

Video analytics, acquired from Puretech in 2007 for $3.25 Million (disclosed in 2009 report [link no longer available]), is being sold. As the company notes, "In the third quarter of 2009, the Company’s Board of Directors adopted a plan of sale and put the assets of PureTech Systems, Inc. (PureTech), a unit in the Solutions segment, up for sale, as the business model of thisunit no longer aligned with the strategic plans of the Company. In conjunction with this plan, the Company recognized a loss on discontinued operations of $2,940,803 in 2009."

While the company's plan were to expand solutions (using offerings such as PSIM and video analytics), the low revenue and willingness to discontinue Puretech are good signs of the challenges in executing this approach.

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