Iveda Goes Public but Suffering from Heavy Losses
Published Nov 14, 2009 00:00 AM
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More interesting than the rarity of a video surveillance company going public is the revelation that Iveda is suffering heavy operational losses.
Iveda Solutions is a specialist in remote monitoring / management of video surveillance. On November 12, 2009, they announced that, through a reverse merger with a penny stock company, they had gone public [link no longer available].
Their financial disclosures as part of going public reveal a company that is in poor operational condition.
- Annual revenue peaked at $544,259 in 2007. That's not a typo - just a half million US dollars for the year.
- In 2009, revenue is down almost 25% with Q2 2009 revenue only slightly above $100,000 USD.
- Operating losses have been severe - over $1.5 Million USD in 2008 and almost half a million in 2007.
- Losses from operations were $855,502 for the six months ended June 30, 2009
- "IntelaSight implemented 10% to 41% salary cuts across the board in April 2009."
While going public is often thought as a validation of success, Iveda's poor financial position is a clear concern. Many remote monitoring vendors have faced similar challenges over the last decade.
Update: In a November 19, 2009 interview with Security Systems News, Iveda's CEO contends that the event means "renewed confidence and credibility." However, sophisticated observers can now see our extremely poor their operational and financial performance has been.