Milestone 2009/2010 Financial Progress Examined

Author: John Honovich, Published on Dec 22, 2010

In this note, we examine Milestone Systems financial progress across 2009 and 2010, including an examination of XProtect Essential adoption - their recently introduced very low cost VMS version.

Milestone is regularly cited as one of the largest VMS software providers (in terms of revenue, though this excludes comparison to DVR and NVR appliance manufacturers).

Milestone was included in the 2010 ASMAG Security 50, coming in 50th position with a listed revenue of $23.8 Million. This number differs from Milestone's previously cited $30 Million. Milestone clarified that the $30 Million was for 2009 bookings. The much lower $23.8 Million number comes from currency conversion calculated by ASMAG on September 1, 2010. The Danish Kroner to USD exchange rates have fluctuated significantly during 2010. At year end 2009, the exchange rate produced an approximate $28 Million revenue level in USD.

As for 2010, Milestone is self-reporting over 45% revenue growth over 2009.

Essential Growth / Adoption

Perhaps the most interesting dynamic for Milestone's 2010 revenue/growth was the June 2010 announcement of XProtect Essential where Milestone, out of the blue and without provocation, dropped their entry level VMS pricing by more than 50%. Now, Milestone reports that they are selling "more than twice as many units" for Essential than its higher priced predecessor, XProtect Basis+ and that, despite the steep unit price drop, overall revenue for Essential in H2 2010 is higher than Basis+'s H2 2009.

While most VMS vendors declined to respond to Milestone's aggressive moves, these results are in line with basic economics. I think most would agree that VMS software responds to the law of supply and demand and is not a Giffen good. On the other hand, the passive response of most VMS vendors seems to ignore that.

Milestone's growth in this segment is almost certainly coming at the expense of its competitors (i.e., the entry level VMS market is not growing at over 100%). For Milestone, net revenue growth may be a bonus as the main impact may be to weaken their smaller competitors.

In 2011, it will be interesting to see what responses are made and how market dynamics continue to shift.

Comparisons

In general, Milestone's projected growth is in line with the strong results other IP video providers are reporting for 2009 including Exacq and Avigilon. Also, contrast to our note on Genetec's 2009 growth/results.

1 report cite this report:

The VMS Price Wars Have Begun on Jan 11, 2011
Until 2010, the VMS market enjoyed peaceful growth. Now, with unprecedented price drops, the market faces great turbulence and changes. Users...
Comments : PRO Members only. Login. or Join.

Related Reports

Arecont Favorability Results 2019 on Apr 22, 2019
Arecont's net negativity remained the same in IPVM's 2019 integrator study, though integrator's feeling became relatively more neutral compared to...
H.265 Usage Statistics on Apr 19, 2019
H.265 has been available in IP cameras for more than 5 years and, in the past few years, the number of manufacturers supporting this codec has...
The Fastest Growing Video Surveillance Sales Organization Ever - Verkada on Apr 17, 2019
Verkada has the fastest growing video surveillance sales organization ever. In less than 2 years, they already have more salespeople in the US...
Dahua Repositionable IR Multi-Imager Camera Tested on Apr 16, 2019
Dahua has released their first repositionable multi-imager camera, the Multi-Flex 4x2MP, claiming integrated IR, true WDR, and flexible...
Axis Supports HD Analog on Apr 15, 2019
In 2017, Axis declared 'Everything is IP': Now, in 2019, Axis has released support for HD analog, with their new encoders.  Why the change?...
ISC West 2019 Report on Apr 12, 2019
The IPVM team has finished at the Sands looking at what companies are offering and how they are changing their positioning. See below for 50+...
Spring 2019 50+ New Products Directory on Apr 08, 2019
We are compiling a list of new products for Spring 2019 and have over 50 already. Contrast to Fall 2018 New Products Directory and Spring 2018...
Airship VMS Profile on Apr 03, 2019
Airship has been developing VMS software for over 10 years, however, with no outside investment, and minimal marketing, the company is not well...
Dahua Favorability Results 2019 on Apr 01, 2019
Dahua favorability declined, in IPVM's 2019 integrator favorability series, driven by their backdoors, resulting in mass hacking and US government...
Panasonic Favorability Results 2019 on Mar 27, 2019
Panasonic favorability declined, as the company struggled to find its way amidst a changing market and its ill-timed decision to become a Dahua...

Most Recent Industry Reports

Ex-Integrator Now Growth Strategist Interviewed on Apr 24, 2019
For more than a decade, Scot MacTaggart was a security integrator (at PA-based PSX). In late 2018, he left the industry. He is now a Growth...
19 Facial Recognition Providers Profiled on Apr 23, 2019
IPVM interviewed 19 facial recognition providers at ISC West to understand their claimed accuracy, success and positioning. 9 from China, where...
Locking Down Network Connections Guide on Apr 23, 2019
Accidents and inside attacks are risks when network connections are not locked down. Security and video surveillance systems should be protected...
Hikvision Admits USA Sales Falling on Apr 22, 2019
Hikvision, in a new Chinese financial filing, has admitted that its USA sales are now falling. Less than a year after the US government passed a...
Speco Ultra Intensifier Tested on Apr 22, 2019
While ISC West 2019 named Speco's Ultra Intensifier the best new "Video Surveillance Cameras IP", IPVM testing shows the camera suffers from...
Arecont Favorability Results 2019 on Apr 22, 2019
Arecont's net negativity remained the same in IPVM's 2019 integrator study, though integrator's feeling became relatively more neutral compared to...
H.265 Usage Statistics on Apr 19, 2019
H.265 has been available in IP cameras for more than 5 years and, in the past few years, the number of manufacturers supporting this codec has...
ACRE Acquires RS2, Explains Acquisition Strategy on Apr 19, 2019
ACRE continues to buy, now acquiring RS2, just 5 months after buying Open Options. One is a small access control manufacturer from Texas, the...
Access Control Course Spring 2019 - Last Chance on Apr 19, 2019
 Register for the Spring 2019 Access Control Course----Closed IPVM offers the most comprehensive access control course in the industry. Unlike...

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