Mobotix Q1 2012 Financials Reviewed

In the past few quarters, Mobotix growth stalled, raising concerns about the future of the megapixel surveillance veteran. Now, first quarter 2012 results, show a modest increase in growth rate for the company. In this note, we examine what is driving and holding back growth and what Mobotix is planning to do for the rest of the year.

Overview

Key details from Mobotix's financials include:

• 17% revenue growth for Q1 2012 year over year
• Outside Europe growth was primary driver at 23%
• German growth was in line with overall growth - at 17%
• The rest of Europe continues to hold Mobotix back with the company referring to it as a "structural growth problem in certain European markets"
• "Growth expectations for the full fiscal year need to be adjusted to growth of 15% to 20%"

Analysis

Key takeaways:

• The modest rebound is a good sign for Mobotix, especially since they have minimal new product sales driving it. A new series (S14) is just being announced.
• Southern Europe, especially, seems to be hurting all manufacturers.
• Mobotix significantly dropped their growth guidance for the year. Up until last quarter, the company projected growth by 30-35% for the fiscal year. Now they cut that by nearly half.
• In general, given the early trends in 2012, we expect IP video companies to average 15-20% growth instead of the ~30% growth of last year.

Given Mobotix's recent weakness, it will be interesting to see if this is a blib or a start of new upward swing.