IndigoVision's CEO Resigns / Removed

Author: John Honovich, Published on Dec 11, 2011

UK IP video surveillance manufacturer, IndigoVision, has announced 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 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.

1 report cite this report:

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 IndigoVision, long known as a closed end-to-end systems provider. The...
Comments : PRO Members only. Login. or Join.

Related Reports

Hanwha Smaller Multi Imager Tested (PNM-9000VQ) on Feb 14, 2019
Hanwha's first repositionable multi imager PNM-9081VQ tested well, but was huge, over 12" wide and weighing in at over 10 pounds. Now, they have...
Barnes Buchanan 2019: Despite 'Strange Narrative' Great Time To Be In Security on Feb 11, 2019
A "strange narrative" is being spun, said Michael Barnes at the 2019 Barnes Buchanan Conference. However, despite that narrative, it is a "great...
Bandwidth vs Low Light Shootout - Avigilon, Axis, Bosch, Dahua, Geovision, Hanwha, Hikvision, Uniview, Vivotek on Feb 08, 2019
Nighttime bandwidth spikes are a major concern in video surveillance, but do all manufacturers' cameras perform the same? Are some more consistent...
8MP HD Analog Tested (Dahua / Hikvision) on Jan 30, 2019
HD analog has promised higher resolution for years, but has lagged substantially behind for years. Now, both Dahua and Hikvision have started...
Verkada Cloud VMS/Cameras Tested on Jan 28, 2019
Verkada is arguably the most ambitious video surveillance startup in many years. The company is developing their own cameras, their own VMS, their...
Camera Course Winter 2019 - Last Chance on Jan 24, 2019
This is the last chance to register for the Winter 2019 Camera Course. This is the only independent surveillance camera course, based on in-depth...
Testing Bandwidth Vs. Low Light on Jan 16, 2019
Nighttime bandwidth spikes are a major concern in video surveillance. Many calculate bandwidth as a single 24/7 number, but bit rates vary...
Worst Products Tested In Past Year on Jan 09, 2019
IPVM has done over 100 tests in the past year. But which products performed the worst? Which ones should users be most aware of? In this report,...
Struggling ASCMA / Brinks Home Security Gets Stock Delisting Warning on Jan 08, 2019
Struggling Ascent Capital Group (NASDAQ: ASCMA) has disclosed a warning from NASDAQ that ASCMA faced delisting unless they reverse their downward...
2019 Video Surveillance Cameras Overview on Jan 07, 2019
Each year, IPVM summarizes the main advances and changes for video surveillance cameras, based on our industry-leading testing and...

Most Recent Industry Reports

Casino Surveillance Pro Interview: James Lathrop on Feb 15, 2019
James Lathrop has been working in casinos for almost 25 years. During that time, he says he has held "just about every job you can do in the...
Hikvision 2018 Revenue Tops $7 Billion USD But Growth Slows To Low on Feb 15, 2019
Hikvision's annual revenue topped $7 billion for the first time in 2018, although growth slowed sharply. In this post, we analyze the latest...
Hanwha Smaller Multi Imager Tested (PNM-9000VQ) on Feb 14, 2019
Hanwha's first repositionable multi imager PNM-9081VQ tested well, but was huge, over 12" wide and weighing in at over 10 pounds. Now, they have...
ADT And 'The Defenders' Silent About Massive Complaints on Feb 14, 2019
ADT's largest dealer, "The Defenders" has been the subject of a massive number of complaints over many years and many forums, most recently a CBS...
Hikvision Chairman Praises United Front on Feb 14, 2019
Hikvision’s controlling shareholder held a meeting last month praising the United Front, a Communist Party organization known for its secretive...
Sales Turnover At Anyvision on Feb 13, 2019
Anyvision raised a $43 million Series A and according to their newest investor: what you need to do is push the gas pedal and build an...
Cisco Meraki Cloud VMS/Cameras Tested on Feb 13, 2019
Cisco Meraki says their cameras "bring Meraki magic to the enterprise video security world". According to Meraki, their magic is their management...
Uniview / UNV Favorability Results 2019 on Feb 12, 2019
Uniview / UNV, the self-proclaimed #3 China manufacturer, while starting late, has been working to make inroads internationally. In IPVM's 2019...
Nortek Mobile Access Reader BluePass Examined on Feb 12, 2019
Nortek's Linear access control division claims to make mobile credentials "more secure and easier to use than ever before" with their BluePass...
Solink Raises $12 Million - Company Profile on Feb 12, 2019
Most industry professionals have never heard of Solink, a company whose tagline is: It's time to revolutionize the way business uses...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact