IndigoVision's CEO Resigns / Removed

By: John Honovich, Published on Dec 11, 2011

UK IP video surveillance manufacturer, IndigoVision, has announced [link no longer available] that its founder and long running CEO is stepping down. This comes in the midst of IndigoVision's challenges to match the fast growing pace of the overall IP video segment. Inside, we examine the resignation, IndigoVision's most recent financial results and prospects for the future.

We asked IndigoVision why their CEO was stepping down. Their response was: "The Board wanted to change the management structure and offered Oliver deputy Chairman which he declined and chose to step down. IndigoVision has been revamping it’s management processes.  The Board really wanted to retain Oliver and that he chose to leave is in the normal course of a company’s development.  There is a depth of experienced professional management in place and highly motivated teams able to continue the growth of the company Oliver founded. He remains the largest shareholder."

Update: The former CEO has told a Scottish newspaper that he was forced out, “I was dismissed by the company – I did not leave voluntarily." That gives the impression of a bloodier exit than the company's official position.

Over the last 3 years, both IndigoVision's stock price and company revenue levels have been fairly flat. This lags behind their market segment which has roughly doubled in revenue over the same time period (e.g., Axis's stock price and revenue have roughly doubled). In our October 2011 financial note on IndigoVision we noted how a number of companies have leapfrogged IndigoVision's revenue in this period.

Recent Financial Performance

At the end of November, IndigoVision issued improved guidance [link no longer available] on their financial performance. Specifically, IndigoVision emphasized how it was their most profitable quarter ever. The company was able to significantly raise gross margins and cut overhead costs. However, revenue growth did not increase significantly.

Outlook and Analysis

While the company is clearly demonstrating ability to fine tune operations, the big challenge we see is growing their top line and holding their market share in a segment that is continuing to grow robustly. Operational efficiencies will not be sufficient to achieve this. Improving the product portolio's competitive position will be key.

We asked IndigoVision about their product plan and vision. While they declined to disclose specifics, they noted that they are spending $5 million annually on R&D. For a company with revenue in the ~$40 Million range, that is a solid percentage.

We think the big product challenge for IndigoVision is just how much more competitive the IP video surveillance market has become in the last 3 years. While IndigoVision offers quality products, the pricing is competitively high and the range of products is relatively low. By contrast and for example:

  • Milestone is forcing down the price of VMS software.
  • Avigilon is selling encoders at dirt cheap prices. 
  • Axis has gone wild introducing an incredibly broad range of cameras and now encoders.

In the same time period, IndigoVision has made some incremental enhancements to its product portfolio but not at a pace that matches industry changes.

Our guess is that IndigoVision moves into more of a niche player role where they concentrate on smaller numbers of large camera, complex projects where the need and value of an end to end, optimized solution is greater.

2 reports cite this report:

Motorola Acquires IndigoVision on Mar 17, 2020
Motorola owns Avigilon, an end-to-end video surveillance solution. Now,...
IndigoVision Profile - Going Head-To-Head Against Milestone, Genetec on Oct 12, 2016
Cameras are commodities, the money is in VMS. This is the new philosophy of...
Comments : Members only. Login. or Join.

Related Reports

Genetec Drops Support for Dahua and Hikvision on Jun 01, 2020
Genetec has dropped support for Dahua and Hikvision, citing US blacklisting...
Hikvision Admits Minority Recognition, Now Claims Canceled on Jul 23, 2020
For the first time, Hikvision has directly addressed its minority recognition...
Dahua CEO Is Out on Feb 28, 2020
Dahua CEO Li Ke has resigned less than 3 years after he was brought in from...
Motorola / Avigilon Drops ISC West on Feb 26, 2020
Motorola Solutions has pulled out of ISC West 2020 effective immediately,...
Genetec Goes Virtual, Drops Essen and GSX, Skeleton Crew to ISC West 2020 on May 05, 2020
Genetec is dropping Essen and GSX shows this year as well as planning to send...
Sony Exits Branded Video Surveillance Business on Apr 15, 2020
After years of decreasing investment into video surveillance, Sony has now...
Bosch Dropping Dahua on Feb 13, 2020
Bosch has confirmed to IPVM that it is in the process of dropping Dahua, over...
IBM Video Analytics Reborn on May 01, 2020
IBM is back in video analytics and they are even offering AI-based fever...
IC Realtime Moving Away From China Manufacturing on Jul 23, 2020
IC Realtime is promising "real change". The company historically has sold...
UK Firm Markets False Fever Screening, Hikvision Disavows on Jun 30, 2020
A UK security firm falsely claimed its Hikvision-based thermal solution could...
Dahua Revenue Plunges, 3 Execs Resign on Apr 29, 2020
Dahua's sales dropped by 19.47% in the first quarter of 2020 amid the...
Wyze Fails To Deliver Own On-Board Analytics, Launches Novel Name Your Own Price Service on Jul 24, 2020
While Wyze failed to deliver their own onboard analytics to replace the...
Milestone CEO Resigns on Mar 11, 2020
Milestone's CEO has resigned, after 17 years on the job but there is no...
UK ICO Approves Unconsented Facial Recognition At Security Conferences on Feb 05, 2020
The UK's data protection agency has declined IPVM's GDPR complaint against...
Manufacturers Not Interested in October 2020 ISC West Show on Apr 13, 2020
Manufacturers overwhelmingly say they are not interested in going to the...

Recent Reports

Dangerous Hikvision Fever Camera Showcased by Chilean City on Aug 07, 2020
Deploying a fever camera outdoors, in the rain, with no black body, is...
"Grand Slam" For Pelco's PE Firm, A Risk For Motorola on Aug 07, 2020
The word "Pelco" and "grand slam" have not been said together for many years....
FLIR Stock Falls, Admits 'Decelerating' Demand For Temperature Screening on Aug 07, 2020
Is the boom going to bust for temperature screening? FLIR disappointed...
VSaaS Will Hurt Integrators on Aug 06, 2020
VSaaS will hurt integrators, there is no question about that. How much...
Dogs For Coronavirus Screening Examined on Aug 06, 2020
While thermal temperature screening is the surveillance industry's most...
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...
AHJ / Authority Having Jurisdiction Tutorial on Aug 06, 2020
One of the most powerful yet often underappreciated characters in all of the...
SIA Coaches Sellers on NDAA 889B Blacklist Workarounds on Aug 05, 2020
Last month SIA demanded that NDAA 899B "must be delayed". Now that they have...
ADI Returns To Growth, Back To 'Pre-COVID Levels' on Aug 05, 2020
While ADI was hit hard in April, with revenue declining 21%, the company's...
Exposing Fever Tablet Suppliers and 40+ Relabelers on Aug 05, 2020
IPVM has found 40+ USA and EU companies relabeling fever tablets designed,...
Directory of 201 "Fever" Camera Suppliers on Aug 04, 2020
This directory provides a list of "Fever" scanning thermal camera providers...
Face Masks Increase Face Recognition Errors Says NIST on Aug 04, 2020
COVID-19 has led to widespread facemask use, which as IPVM testing has shown...
Dahua Loses Australian Medical Device Approval on Aug 04, 2020
Dahua has cancelled its medical device registration after "discussions" with...
Google Invests in ADT, ADT Stock Soars on Aug 03, 2020
Google has announced a $450 million investment in the Florida-based security...