IndigoVision's CEO Out / Ex-Avigilon Exec In

By Brian Karas, Published Nov 27, 2017, 02:07pm EST

After 6 years as CEO of IndigoVision Marcus Kneen [link no longer available] has abruptly resigned, with the board nominating Pedro Simoes [link no longer available], IndigoVision's recently hired SVP Global Sales, and ex-Avigilon SVP, as interim CEO.

The resignation came as the company warned it would miss expectations for 2017, resulting in an operating loss.

Inside we analyze the changes to IndigoVision leadership, and outlook for the company as it looks for a permanent CEO.

Management *******

****** *****'* *********** ****** came ** *********** **** a****** **** *** ******* would **** ************ *** 2017. ***** ****** **** act ** ******* ***, an **** **** **** IndigoVision's ***** "** **** as *********" ********* ** the ******. **** ****** comes **** **** * months ***** ****** ****** the ******* ** ******* 2, ****.

Return ** **** **** *************

*** ******* ******** ** operating ****** ** $.** in ****, ********* ****'* loss ** $.***. ***, the ******* ******* **** results ** **** * net ********* ****.

Downward ******* ***** *********

************ *** *** **** revenue ************ ** $***-$***, a ******** **** ****'* $46M, ***** ****** *** down **** ****'* $*** in *******. **** ********* trend ** ******* *******, and ** ********* **** for *** ****, **** counter ** ************ *** in ************'* **** ****** ****** ***** *** ******* *** expected ** ****** "******* progress" ** ****.

*** ******** ******* ***** is ************ **********, ** the ******** ******* *** had ******** ****** ** the *** ******-***** ***********, and **** ********* ********************** ***** ********* ****** in *** *** *****, showing **** ***** *** markets *** ******* ********.

Stock ********

************'* ***** ******* ~**% after *** ******* *******:

Middle **** **********

*** ******* ***** ********** *** delays ** ********* ****** in *** ****** **** as * ************ ****** to *** ******* ********. This ******* ***** ************* who **** **** ***** that ******** ** ****** East **** ******* **** compared ** ******** *****.

**** *** ************'* *** region ** ****, ******* ~16% ****** **** ****:

US **** ********* *********

************ ** ********** ***** investment ** ******** * US ***** ****, *********** this ** *** ***** of * *% ****** overhead *** **** ******** to ****. *** ****** ******** ** ******** ** ex-Avigilon ********* *********, **** ****** ******* [**** no ****** *********] *** ****** ***** [link ** ****** *********], both **-******** ***'*, ******** joining ************'* ** ***** team.

Change **********, *** **** ******** **********

******* ** ************ ****** that *** ******* ******* and *** *********** **** unexpected. *******, **** ** Simoes ****** *** **** of ******* ***, *** joining *** *****, **** viewed ** ******** *****. 

Simoes ***** ********

****** ********* **,*** ****** of ************ ***** ** £1.2/share ***** *** ************ ** November **, ****. **** purchase, ***** * ********** small ******* ******** ***** (relative ** ******* ********* salaries), ***** * **** of ********** ** *** company ** ******' ****, and ***** *** "**** in *** ****", **** his *** ***** ** stake ** *** ********* future.

Financial ********

******* *** ********* ****, IndigoVision ****** **** **** a **** ******* ** $2.5M *** * **** facility ** $** *********. Sources ** ************ **** IPVM **** ** *** no ************* **** **** made ** ***** ***** and ********* ******** ***********, and **** *** ******* plans ** ******** ************ targeting *** ******** ** the **.

IndigoVision *******

********* ********* ************ *** negative *****, ******* **** can ** ********* ****** if ******** ******* *** be ********* ** **** those *********. ** ************ can **** * ****** CEO **** ******** **********, it **** ****** ** partners **** *** ******* has *** ******* ** attract *** ******, *** will **** ********* ******** about *** ****** ** the *******. *******, ** the ******* ******** ** hire * *** **** outside *** ******** ********, it may **** ***** ******* to **** ****** ******* decline **** **** ***********, as **** ******* ********** would **** ********** **** to **** ** ** speed ** ******* **** influence ********* ** *** security ********. 

Update - ****** *** ***

************ ********* ** ******* 9th, **** ********* ****** *** **** named ********* ***. **** **** *** announced ***** ** * strategy ** ******** *** role ** **** ** sales, ** **** ****** accordingly **** **** ******.

Comments (13)

Simoes purchased 15,000 shares of IndigoVision stock

At first I was like, "Whoa, he paid $1.7M US for stock? What was he doing, buying himself a job?" (Common stock price of $115 US as of 11/27/17).

But then I saw on the report he paid 1.2 GBP, or $1.60 US a share. So I guess was not common stock.

 

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I added clarification on the purchase price, thanks for pointing that out.

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The London stock exchange measures everything in pence. So, “115” represents £1.15 per share. Therefore, yes, it’s common stock. 

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So far the 'frantic' hiring of ex AVIGILON employees hasn't had the desired impact it seems. Maybe Pedro can right the ship for them but then he is also ex AVIGILON...be interesting to follow this story from here on... 

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I am laughing....and crying at the same time.

I guess it's time to buy stock now.

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Marcus was the wrong person to lead and manage this company from day one.  Accountants rarely make good CEO's. 

IndigoVision is a good company so lets hope Pedro can turn things around.

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I worked with Indigo when the founder was still the CEO. Was surprised (as U5 stated) when the CFO was moved into the CEO position.  Since than, Indigo has seem to struggle to find itself in the NAM. High turn-over of the sales management teams, poor market penetration, etc. 

I do think the recent hiring of AVO employees is a solid move. Knowing a lot of these guys personally, they bring a lot of value to Indigo. In the long run this could prove beneficial. 

The struggle, I believe, for Indigo will be their ability/willingness to allow the NAM team to operate with a level of autonomy. Too often companies based overseas struggle with adapting to other markets. Assuming that what works in EMEA will work in NA will only fail. Just as NA companies entering new global markets must adjust to ensure success, the reverse holds true as well. 

The other hurdle is that Indigo will have is competition. NAM is full of large and successful video players already. While Indigo has been in the NAM for some time... they have failed at gaining a solid market presence. However, the new AVO converts may be just what they need. 

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I agree with the fact that business cultures are very different between for example the US and Europe. A company like INDIGO should not try to 'rule' the way their business is conducted in the US and would be far better of getting the right management in place locally and let them, to certain extend, run the show. Same vice versa, I've seen how a NA based company struggled trying to 'enforce' their NA business model in Europe struggled until such time they hired qualified 'local' managers who understood their markets so much better.

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Agreed, agreed, agreed on the EMEA vs. NAM markets. You can try your way so long, but if it doesn't work you're going to concede you either have to adapt to the market way of doing things or just get out of that market.

A lessen for every manufacturer who deals internationally.

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IV's historically based on "project oriented business model"... that could be a good plan A between 1995 - 2010, hi profit, differentiation features, betters cost per channels, hi revenues, ..etc.

Now, not only "state on the art technology feature" are enough to secure pipe. 

Most manufacturers have plan A, B, C & D according for each segment & business models.

Mass market coverage, less niches focus, mining relationship with SI, mass communication to end-users, and more in order to secure  "pipe time-slot".

Yes, is not easy. Is a hard job without time to recover the course. 

IV have a great, strong and scalable solution.

From a SI point of view, IV is a best option to offer a strong post sales services.

I see a lot of +500 channels installation with same VMS's weakness 

So,  Good luck to IV team, an my best wishes to the new CEO. 

 

M.

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Update - Simoes Now CEO

IndigoVision announced on January 9th, 2018 that Pedro Simoes has been named permanent CEO. They have not announced plans on a strategy to backfill his role as head of sales, we will update accordingly when that occurs.

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IndigoVision recently announced that they were profitable ($400K) in the first half of 2019. That's definitely a positive development....

The Scotsman article (August, 2019)

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