Revenue Decline Continues in 2010

By: John Honovich, Published on Nov 24, 2010

As the market shift to IP cameras continues, incumbent DVR leader Dedicated Micros struggles lengthen. Significant revenue declines in 2008/2009 have extended into 2010. According to UK Government Records, Dedicated Micros revenue continued to shrink in the most recent reported period concluding June 30, 2010. Compared to 2008/2009, revenue was down 11.6% to 54.4 Million GBP (roughly $85 Million USD at today's exchange rates), down from 61.5 Million GBP. Prior to 2008, revenue was above 70 Million GBP.

By territory, revenue in the UK was only down about 6% to 23 Million GBP but in the rest of Europe revenue plummeted nearly 50% to 4.2 Million GBP.

Headcount decreased from 611 employees to 523 (a reduction of ~14%) with notable reduction in both sales and technical divisions.

In the report, DM argues that it "has successfully traded through what is widely recognised as the worst economic crash of all time." This is obviously an overstatement (in general) and given that the video surveillance industry (and especially the IP segment) did significantly better than the overall economy in the period. On the other hand, their revenue declines is consistent with many other analog focused businesses during the similar time frame.

In the report, DM positioned Closed IPTV [link no longer available] as their most notable new innovation and a key driver for future growth. It's undoubtedly a daring bet that no one else is making. If they are right, they will define a new niche with little competition and strong growth. If they are wrong, they could be betting the future of their company.

We remained skeptical of the incremental value that Closed IPTV will provide over 'regular' IP solutions, especially on their security claims.

2 reports cite this report:

Vicon's Troubles Continue on Dec 02, 2010
For the 3rd straight year, Vicon's revenue continues to drop, showing little signs of a turn-around. In December 2010, Vicon announced results for...
HiTron Revenue Decline Examined on Nov 24, 2010
While relatively unknown in much of the world, HiTron [link no longer available] is one of the world's largest DVR/analog manufacturers. Since the...
Comments : PRO Members only. Login. or Join.

Related Reports

ADT Stock Drops After Announcing Loss And Amazon Delay on Mar 12, 2019
ADT's stock price dropped significantly after reporting heavy losses and delays in its Amazon partnership, as seen in the screenshot below: In...
Verkada Gets Half Billion Dollar Valuation on Apr 26, 2019
Last week, when we profiled Verkada (The Fastest Growing Video Surveillance Sales Organization Ever - Verkada), we predicted they would raise $40...
Knightscope Adds Just 2 Total Customers In Past Year, Yet Raising Money at $300 Million Valuation on May 02, 2019
This is no longer funny. While Knightscope has laughed it up promoting robot selfies, joking about a 'suicidal robot', the man who attacked a...
Avigilon President Henderson Is Out on Jul 09, 2019
Avigilon's President and COO James Henderson is out, abruptly, after a remarkable ascension over the past 8 years, Motorola VP Jack Molloy has...
Knightscope Sells Just 1 Net New Robot In 6 Months on Oct 04, 2019
For the first half of 2019, US government records show that Knightscope has sold just 1 net new robots ('machines-in-network'), inching up from 52...
Resideo Stock Plunges 37%, CFO Ousted on Oct 23, 2019
The horrible year for the ADI / Honeywell Home spinout, Resideo, just got worse, with their stock plunging another 37% today. Not even a year...
NetPosa Revenue Plunges 90% on Nov 04, 2019
Revenue for China's long-time largest VMS provider NetPosa plunged 90% in the latest quarter, adding to the firm's serious financial...
"Stress in the Residential Market" - Major Lender Exits on Nov 06, 2019
The residential security / 'alarm' market is getting worse, at least for traditional players. Now, one of the biggest lenders in the industry has...
Resideo CEO To Step Down on Dec 03, 2019
Resideo's CEO, Mike Nefkins, is stepping down, just 18 months after being brought in to lead the now plagued spin-out. Inside this note, we...
Vivint Valuation Falls $1.5 Billion on Dec 19, 2019
Residential market struggles continue. Now, Vivint's valuation has fallen $1.5 billion in its impending merger. Inside this note, we examine...

Most Recent Industry Reports

Hanwha Wisenet X Plus PTRZ Tested on Feb 14, 2020
Hanwha has released their PTRZ camera, the Wisenet X Plus XNV-6081Z, claiming the "modular design allows for easy installation". We bought and...
PRC Warns Against China Video Surveillance Hacks, Hikvision Targeted on Feb 14, 2020
Hackers are targeting China video surveillance manufacturers and systems, according to the PRC's main cyber threat monitoring body. The hackers...
IPVM Conference 2020 on Feb 13, 2020
IPVM is excited to announce our 2020 conference. This is the first and only industry event that will be 100% sponsor-free. Like IPVM online, the...
Bosch Dropping Dahua on Feb 13, 2020
Bosch has confirmed to IPVM that it is in the process of dropping Dahua, over the next year, as both IP camera contract manufacturer and recorder...
BluB0X Alleges Lenel, S2, Software House Are Dinosaurs on Feb 13, 2020
BluB0X is running an ad campaign labeling Lenel, S2, Software House, Honeywell, AMAG and more as dinosaurs: In a follow-up email to IPVM,...
London Live Police Face Recognition Visited on Feb 13, 2020
London police have officially begun using live facial recognition in select areas of the UK capital, sparking significant controversy. IPVM...
Converged vs Dedicated Networks For Surveillance Tutorial on Feb 12, 2020
Use the existing network or deploy a new one? This is a critical choice in designing video surveillance systems. Though 'convergence' was a big...
Monitoreal "Completely Autonomous" Home AI Tested on Feb 12, 2020
Monitoreal claims to allow users to "see the things you want (people, vehicles, animals) and ignore the things you don’t”, using AI to distinguish...
Cisco Video Surveillance Is Dead, Long Live Cisco Meraki Video Surveillance on Feb 11, 2020
A dozen years ago much of the industry thought that Cisco was destined to dominate video surveillance. They stumbled repeatedly, failing. Now it is...
BICSI For IP Video Surveillance Guide on Feb 11, 2020
Spend enough time around networks and eventually someone will mention BICSI, the oft-referenced but only vaguely known standards body prevalent in...