Milestone Execs on Financials, China and Future

********* *** ******** ***-**** ****** ****** *** 2018, ** ******** *** unrequired **** *** * subsidiary ** * ***** company, *******, ********* ********** their *** ** ** transparent ** * '*****-*****' company ****** *****.

*********'* *** **** **************** **** ********** ***** ** **** not **** ***** ***** financials *** ***** ******** (or *** **** *******) in ***** *** *** future ** ************ *** cloud *****. ** **** note, ** *******:

• *********'* ****** **** ******** to ******** ***** *** to *** ****** ** a *****
• ***** *&* ********* *****
• *** ****** ** ** / ***** ********** ****** XProtect
• *** **** **** '** direct ********' ** *****
• *** ******** ************* ***** would ** * '***** no' *** *********
• *** **** ******* ** a '********** *******' ****** Canon
• *** **** ****** ****** single ***** *** ****** rates ** ** ****** digits
• *** **** ****** ** grow ******* ********* *********

[***************]

Growth **** *****

*********'* ******* **** **% in **** ** ******** currency *****, * ******** from ****'* **%+ ****** rate. ****: *** ****** report ***** *% ******** in '*** *******' *** Milestone **** **** *** impacted ** ******* ******** rates.

****** ***, ****** ** a * - **% range ** ****** ******. Milestone **** **** **** believe *** ******* ****** for *** ******** (**-*****) is ****** ******, ***** we ***** ** *******. VMS ******** ** ** longer * ***** ****** market, **** *** ********** of ** ******* *** the ********* ** ***** as ** ************ ****** alternative (***, *.*.,*** ****** *** *** VSaaS ****** ****** **** - *****.***, *******, ***** Eye, *******, *******, *******, More).

** *** ***** ****, Milestone *** *** * breakthrough ******* ** ******* in **** ****, ***** we **** ***** ** impacting ***** ******.

R&D ********* *****

********* **** *** **** plan ** ************* ******** R&D ********, ******:

*** ******* **** ******* to ********** ********** ** increasing *** *********** ******** by ** *** **** by *** *** ** 2019.

*******, *********'* **** ****** report ***** *&* ******** was *********** **** **** over ****. ********* **** that ** ********* ******* of *** ****-***/************* ** Arcules *** ********* ******* they **** ** ************* increase *&* ***** ** 2019.

AI / ***** **********

*** **** *********** *&* project **** **** ********* and *** ******* ** is *** ** ***** processing, ** ************* ** **** **** post:

** **** ** ******* a ***** ** *** art ***** ********** ******* – * ******** *** efficient ******** *********** ********** of ***** ******* ** you ** ******** ******** can ***** ** ******** innovative ********* ********* ********-********* video **********.

*******, ** *** ** public ******* **** *** so ** ** ******* when ** **** ** into ********** ** *** much ** ** ****** it **** ****.

***********

*** ***** ******* *** project ********* **** ********* has ********** ** ***'***********' (***** ******* ** for ****). *********** / ******** ***** ** ******** and ******* ******** ***** camera *** *****, **** or ** ********* **** achieve **** ** ***** side ** *******. ** could ** **** * notable ******* ****** *** differentiator ** ********* ***.

China '** ****** ********'

*** *** ***** ****, Milestone ******** ***** *** their ***** ** ******. The **** ********* ******* was *** ***** **** is *** *********, ** their ******* ***** *****:

**********, *** *********'* ******* to ** ** *** in **** ** ********** since *** *** (*****) is *** *****'* ******* surveillance ****** *********** **% of ****** *****.

********* ********* **** **** have '** ****** ******** in *****' *** **** their ******** ** ******* 'very **** *****' ******* to ******** *** ***** re-sell *****.

*** *** ******** ********* noted *** **** ****** of ***** ****: (*) Intellectual ******** ********** *** (2) *** ********** ** teaming ** **** ***** partners *** *********** *** local ********.

Clear ** ** ********

*********'* ***** **** * 'clear **' **** ***** if **** ***** *********** in ************ ******** *** Xinjiang ************* *****. *** Xinjiang ***** ****** ***** crisis *** ***** ** lawmakers ** **** *** US *** ** **** called *** ****** ******* companies **** ***** *** Hikvision ********* **** ****.

********* *** ***** * particularly ********** ***** ******* abuse ** ********** ** this *************** ***** ** *** 'Copenhagen ******' ** ***** EULA, ***** ******* ************* and ********* **** ** technology, **** *******:

** **** *** ******** design *** *********, *********, or *******. ** **** design ***** **** ** would **** *** ***** ones ** ***.

***** ********* *** ************* in ***** ** ********* commendable, **** * ********* standpoint, **** *** ** a *********** ************.

Canon '**********'

**** ****, ** **** be * ***** ********** ******** *********. ***** ** *** many ** *** ******** were ********* ***** ********* remaining ***********, ********** **** Canon ********* ****, **** still *** ***** *** independently.

********* **** ** *** same ***** ******** * ****** ******** magazine **** *****:

*** ***** **** *** to **** * ****** of ******* ** *** new ******: ** *** not **** ** ** a *********** ***** *** the ****** *******, *** astand-alone ******* with its own governance structure. In fact, this meant that we built a Chinese **** around our company, where the parent ******* **** *** **** ****** ** *** *********, **** *** **** ****** ** *** ******** ********, ****** ******* *** ** ** *** ***** ****, and continue ** **** **** *********** to the parent company. Canon accepted this and continues to do so. [emphasis added]

*********, **** *** ******** are ****** ********* *** promoted ** ********* **** their ********** ***********, ******, both ********* *** *** largest ******* ********* ** their ********** **********. ******, even ****** ***** ******** both ** ****, ********* gave *** ******* ** both.

***** ***** *** * self-proclaimed ***-**** ****, ** still ***** ** ** possible **** *****, ** some ***** ** *** future, ****** *** ******* video ********* ********.

Slow *** ****** ******

********* ****, ******* *******, that *** ******** ****** would ** ** *** single ******, ***** ** agree. ****** **** *** and *** *** ******** for **** ***** ** come *** *** **** drivers *** ******** **** subsided *** *** *** driver (*****) **** ************ cut **** ***, ** some *****, ***** *** VMS ******** **** ** fall.

Arcules *** ********* ******

********* ** ********* ** its ****** ******** **** of ******* ***** *** software ******** (********* / XProtect) ********** **** ***** cloud *** ******** (*******), see:********* ******** ********* **** Arcules.

********* ********* ******* ** 'an ********** *******' *** that **** ***** *** consolidate ******* ********** **** Milestone's. ** *** ***** hand,*********'* *** **** ************ ************** ******** ** Arcules, ** ******** ********** remains **********.

**** *********'* ********* ***********, selling ***** *** ********** will ********* ****** *********'* potential ******, ** ********** to *********** **** ********, Genetec *** **** / Exacq *** *** *** running ***** ***** ********* inside ***** ******** **********.

**********, ** **** ** interesting ** *** ** Milestone *** ** ****** grow ****** *** ******** overall ** ****** ***** VMS ******** *** ********** from ***** / *****'* cloud *** ***.