Is Milestone Actually Making Any Money?

Author: John Honovich, Published on Dec 10, 2011

In the past 18 months, Milestone Systems has redefined itself as the low cost VMS champion, slashing prices at a feverish rate and introducing the industry's most well known free VMS offering. However, these actions have raised many questions, none more basic than "Is Milestone Actually Making Any Money?" We first examined this in our August 2011 review of Milestone's Financials and Profitability. Now we dig further into their profits, contrasting them to leading video surveillance companies around the world.

Milestone's (Lack of) Profits

********* ** *********'* ****** **********. ** *** **** * *****, their *** ****** ******* ***** ******** ~**% **** **** ********* a *** **** ** **** *** ~*% *** ****** ****** in ****. ******* ** ****, **** ****** *** *** ** 13th ***** **** ********* *** **** ** ********. ***** ******* are *** *** ******* ************ ********* *** ********* **** ******* in *** **-**% *****.

********, ******** ** **********'* **********, *********'* ********** ****** ***** *** profitability *************. ********* *********** ***** ******* ** *&* ***** ******** to ***** *******.

** *********'* *&* ************ **** ******** ** ** ****** **** competitors, ********* ***** **** ****** ** * ** *** **** 5 ***** *** ****** ***** **** ** *** ***** *. For ********, ** ****, *** ** ***** **** ****** *****, Milestone's *** ******* **** ~** ******* ***. ******* **** *********** somewhere ******* ** *** ** ******* *** ** *&* ********. If ********* ******** *&*, ***** *** ******* ***** ** * mere ******** ** *** ******* ****** ***** ********.

** ** *****, ** *** *** *********** *** ********** ** legality ** *********'* ********* **********. ********* ******** ********** ********** (****) **** ** *******. ******* ************ *&* ** ********* *** allowed ** *** **, *** ************* ** **** ** ** in *******, *********'* **** *******. *** ******** **** ** ****** an ***** ** **** ********** *** *********** **********. **** **** one ***** ** ********* ********** *** * ********** ****, **** needs ** ********* ********** ******* *** ********* *******'* **********.

********* ** ***** ************ *********

**** *** ******* *** *** ******** ****** ********* **** ********** some *&* ***** *** ************** ***** ***** ******. ***** **** capitalizes * ***** ****** ** ************ *****, ** ** **** compared ** *******. ************, **** ******** **** $*** *** ** R&D **** (*** *** **** **** ****** ******). * ******* ******* ** ***** **** *******. ** ****, while **** ***** ****** * ******* ***** ** ***********, **** 1.25 ******* **** *********** ******** ** * ****** ** **** 13 ******* ***** (********** **** ****** ******). ****** *********, **** ***** *********/********* ** *** *********** *****, companies **** **** *** ******* ****** **** **********.

*** ** ************* *********?

**** *** **** **** ****** ******* **** ************* ** *************. Though ********* ** ****** ********** ******* ** ************ *&* ********, it ** ***** *** * *** ** ******** ********* **** flow *******. ****** *******, ******* ******, **** ** *********'* **** model, *********, ******** * *** ** ********* **** **** (*.*., they '*****' *****).

********* *** ******** ******** ***** ********** ****** **-**% ** *** *** ********* *****'* ** **** ** **** ******* ***** ******** **********. As *** *** ****** ****, *** ****** **** ***** ** every **** *** **** ** ** ** ******.

********** ** ************* *********

** *** *** ********** ********** ** *** ******** ** *********'* profitability:

  • *** ******** **** ********* ********* **** ****** ********* **** **** and *******
  • *********'* *********** **** *&* **** ******* **** ******** **** **** growth ******** ******* ** *** **** ***

*** ********: ******* ******** ********* ** *** ****** *** ************ well ********** ***********. *** ****** ** ******** ***** *** ***** inherent **** ***** ******* ***** ** **** *** ******* ** be **** **********. ********, *** ************ ** ************, *** ******** have ********* ********** ********* ******* ********* *** ********* *** ***** expensive ******** *****. ***** ********* ********** ***** ****** **** ******** **** *** ******* ** *********** ** * ****** ******, so *** *** ********* **** **** *** ******* ******* ****** to ********* *******.

*** ******* **** ***** ********** ********* ** **** **** ** the ***** **** **** *** ******** ********* **** ******** ******* financial **********, ****** ** ********* ** ******* ******* ****** *****.

*** ***** ********* ********* ** *** ** **** *********'* ********** in *&* **** ******** ****** ****** **** ****** *** *******. The **** **** ** *********'* *&* ******* ** *** ******* of ***** *********** ** **** *** ********* *** ******* *** features ****** ***** **** *******. *******, ***** ** ******* ** Milestone's ******* ******** **** ** ***** ****** ************ ******** **** would ******* ***** ********* ** **** ****** ****. ** ****, we **** ** **** ** ******* **** ***** *&* ******** alone **** ***** **************** ****** ****** *** *******.

*** ******

********* ** ************ *********** ***** **** *******, **** ** **** than ***** ****** ********* *********, ** **** ***** ********. *** two **** *********** ****** *************** ** *** ** ********* (*) developing * ****** ***** *** ********* ************ *** (*) ******* a ***** ***.

*** **** **** ******** *** ********* ***** ** **:

  • ***** ****** ************ ******** **** *** ******* ********* ** ***** of *** *** ********, ******** **** ** ** **** **** profitable **** *** *******'* ****** ****** ***.
  • ****** ** **** **** *** *** **** ******* ********* *********'* long **** ********* ***** ** ***** **** *** *** *** out ********* ******.
  • ***** ***** *** ****** *** ******** *********** *** ****** **** to ******** ****** ** *** ******.

** *** ***** ****, ***** *** **** *****, *** ** which *** **** ***** ******:

  • **** ******** * ****** ***** *** ********* ************ ****** ******** economies ** *****? **'* **** *********, **'* **** ** ** and **'* ***** **** ** ** *** ***** ***** ************* are ******** **** ******** *** ** *** ***** ** *** web.
  • *** ********* ******** ** ******* ** **** *** ******* *** low ********* **** ****? ** **** *****, ** *** ******** does *** *********** ******** ****** ********* *******, **** **** **** to ***** **** *****, *** **** ** ******** ***/** ***** prices. ** **** ** ****** ** *** ****** ***, ** derails *** ******* ********.

**********, ** ****** ***** *** **** **** **** ***. *** that ** ***** ** (*) ********* ** *** ****** *** real ***** ***** *** (*) ***** ****** ******** ** **** risky. ** *** ********, ** **** ** **** *********** ** see *** **** ********* *** ******** ** **** ******* **** and *** **** ****** **** *** ** ** ***** ***********.

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