Ouch - Mobotix Revenue Declines

Author: John Honovich, Published on Feb 15, 2013

Mobotix's deterioration continues. While the company once boasted regular 50% revenue gains before the recession, growth has decelerated over the last few years, with the previous quarter flat and the just announced quarter (Q4 2012) with actual declining revenue. In this note, we break down the financial details, compare them to market peers, like Axis and Avigilon, and assess Mobotix's future.

Financial Details

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  • *** ******* ******* **** **** **% **** * ********** ****** ~17% **** ** * ********** **%.
  • ******* *** ~** ******* ***** (~** ******* ***) *** ** 2012, ** ********** **** ** $*** ******* ***
  • ******* ***** ** ********* **** **** ****, ******* ********* **** 328 ** *** *** **** * *** ********* ** ** 2012
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  • ****** ******* *** ** *% *** *** **** ** ****** was **** *.*% ****** ****** ***** ******* ******** *** ********. "The **** ****** ** ****** *** *** ** *********** ******* declines ** **** ******** *********," ****** *****, ****** *** *** Netherlands ************.
  • ** ***** ******* *** **** **.*% ***** ******* ********** ** Hurricane ***** ******* **** ***** ** ******.
  • *********** **********: "* ****** ****** ******* *** ******* ******* *** door ******** ** **** *** *********** ** *** ***, *** successor ** ******"

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Stock ***** ********

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*** ***** ***** **** ******* ** ********* *** ****** ** lower ********. ***** * *** ****** ***, ******* *** ************** predicting **%+ ****** *** *** *** ******* **** ** * meager *%.

Delusional ** ************?

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*************, **** *** ********* **** *** *********** *********** * **** ***** ** *** ************.

******* ******* ***** ** *********** *** ********* **** *** ***** big *** ******* ** ****:

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Product **********

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Compared ** ***********

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What ****** ******* **?

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Comments (11)

I think you hit it on the head when you said they stubbornly refuse to adopt the standards. From what I understand, this is the biggest problem with them. They make cool products but refuse to listen to their customers on certain requests. It seems to be a pride issue.

Well I know they are stingy with margins! I will say that I have heard that there is a beef between IPVM and Mobotix.

Insider information. :)

But we all have beefs about something eh?!

Mobotix's poor results speak for themselves. Any IP video manufacturer that announces 5% guidance for the year is in bad shape.

RJ, do you have any information or analysis that shows Mobotix is doing well in the market?

There's no 'beef'. Mobotix violated our non-promotional rule and their membership was terminated, as is our policy with any manufacturer. A Mobotix executive reached out to me asking to talk. I told him I would be happy to but they never responded. When Mobotix wants to talk, I'd be happy to do so.

I have lost all faith in Mobotix. Almost two years ago now Mobotix promised a iPhone/iPad app and nothing came of it. I was at there NPC just before Christmas in Las Vegas and yet again they said iPhone/iPad was going to be released before Christmas. Well guess what still no iPhone/iPad. This is such a basic necessity for any VMS/Camera company and to keep promising but not be able to follow through with the promise is unprofessional.

I also agree with John that there unwillingness to adopt standard compression codecs is hurting them. In my option it will probably be the death of the company. The biggest complaint at there Natioinal Partner Conference was the inability to integrate with 3rd party products and it always came back to not being able to provide a h.264 or mjpeg stream.

Mobotix's leadership only barely pretended to give a shit what the market wanted.

They indulged a Steve Jobs fantasy that they were Apple, blazing a trail, and users eventually would realize that the crazy detour of the eccentric visionary is what they really wanted all along.

If that's who you are, you have to own it though. You have to bluntly tell the market that they are wrong, and every discussion of your market share has to be about the fact that you're on a contrarian path. You have to be a market disrupting truth-teller.

If you seem like you're lying / delusional / etc, no one will ever believe that you're on to a better way of doing things. We either assume A) that you like having total control of your product more than you like market share, and will say anything to keep that control...or B) your executives have built a terrible culture of yes men and data-free decisions.

Either way, you're not going to grow into a mainstream brand when those kinds of things are what people think of your brand.

I spoke with Mobotix's CSO for a while. We are going to have a more formal call in the near future to discuss their products, plans and strategies.

One note on the app, he said that it is scheduled to be available on March 8th in the iOS app store and will be available for free download.

John, I don't know how they are doing in the market. I think we got on to them as a replacement for VideoIQ for a very specific capability. I have no way of confirming this, however our sales rep seems like a reputable fellow and he said their RMA percentage was exceptionally low. German engineering and no moving parts I suppose.

Their % discount to VAR's is well off what we get from March...so we would only use them for specific needs outside what March provides. March was bought by Infinova and have now certified much of the Infinova line to work with Command VMS. This makes it more likely that we stick with March products.

German's are very smart but do tend to be very stubborn. I think part of Avigilon's reaping benefits is from finally opening up with at least some ONVIF and h264 solutions. VideoIQ finally wised up with cameras without storage with the aim of integrating with 3rd party VMS's. No one system; VMS, Camera, Access, does everything perfectlyl. Customers want choices and flexibility. Otherwise you end up going the way of Sun Microsystems, Palm, Blackberry, Nokia, etc.

John, I've been a proponent of Mobotix for sometime, but have recently begun to question some of their decisions. The primary issue I have with the product is the fact that they continue to make their de-warp a proprietary product. I use a VMS that will support the MxPEG Codec, but not the dewarp (which has to come from the camera). I was told by a Mobotix sales rep - not mentioning name here - that the way to solve that was to bring up their MxCC product on another computer and look at the "doubly" recorded footage on that computer direct from device if I wanted to do the dewarp. I responded to him that the suggestion was completely asinine that I would already have a VMS for forensic discovery that I should have another system that ran in tandem - not bloody likely. The response was not even remotely responsible or reasonable. They have solid equipment, but I am suspending the specifying of their 360/180 products on any jobs UNTIL they provide solid support for VMS suites.

Edward, thanks for sharing. I've heard variants of that 'explanation' from many manufacturers. Anytime their product is not supported by a system one is using, they say, "Yeah, just bring up ours in a new client (or deploy ours next to theirs), problem solved." I am not sure why sales people think that's a winning argument.

Btw, the lack of 3rd party dewarping is becoming even a bigger issue with Mobotix as more and more panoramic cameras come to market.

John, I believe that this is not a "winning argument", but a failed attempt to answer a customer concern. I think that Mobotix generallly has superior products, but when they allow an engineer to direct the flow of the company and fail to listen to the concerns of both their VARS and end-customers, they make a choice. I think they believe, in their mind, that they have a "unique" product. Well, with the plethora of new 360 devices out there and the additiona quarterly of new ones, coupled with direct support in VMS suites for those products, their Intellectual Superiority is quickly diminishing. How many other companies have you seen that had the same level of arrogance towards their customers? Eastman Kodak, Xerox, IBM (not that Mobotix is in anyway their equal) all displayed a high level of arrogance towards their consumers and "assumed" that customers would kow-tow to their product delivery and schedule. I'm tired and done with waiting for Mobotix to fulfill on it's promises (all of which have been broken repeatedly). They showed the client at IPC in Germany a full two years ago and said it would be released to the general public later that year - hmmm. Their standard response to everything is "2 weeks" ... going on two years.

I still hold out hope for them that they will get their proverbial heads out of their rear-ends and come to the mainstream sooner than later, but, given German stubborness and their unwillingness to play with others nicely, I doubt that will happen anytime soon.

I think that their best "bet" would be to be acquired by a company with less pedigree and more need. The fiscals support a buy-out - maybe CISCO .... Who knows.

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