Strong Growth Fueled by Wal-Mart

Author: John Honovich, Published on Nov 26, 2010

March Networks turned in its best growth rate in a number of years, fueled by sales growth to Wal-Mart and another major customer. For calendar Q3 2010 (their fiscal year Q2 2011), March Network's revenue grew 32% year over year. However, March is forecasting a more modest 10% revenue growth over the next 6 months.

The source of the growth is almost entirely from 2 major accounts. This can be seen when reviewing their quarterly call slides. Wal-Mart sales were 25% of March Network's entire quarterly revenue. A second (undisclosed but likely banking) customer accounted for an additional 10% of total revenue. In the corresponding quarter from last year, Wal-Mart's percentage of revenue was only 16% and the undisclosed customer only 2%. These 2 customer's revenue contribution essentially doubled over the last year rising from $3.8M CAD to $9.9M CAD, or an increase of $6.1 Million CAD year over year. Compare this to March's overall year over year growth of $7 Million CAD.

Wal-Mart's role is a particularly interesting one. On the one hand, as a huge surveillance customer, Wal-Mart can be a major boost to a vendor (e.g., Wal-Mart bought over $7 Million CAD just this quarter). On the other hand, such a large percentage of sales makes the vendor vulnerable to shifts in Wal-Mart's buying patterns. For instance, in 2006, when March disclosed that Wal-Mart was using a second surveillance supplier, their stock price (and revenue) suffered.

For March Networks, though, this looks to be good news as, at least for now, Wal-Mart is increasing purchases of their products. This may be correspondingly bad news for Verint who is widely known as the 'other' supplier for Wal-Mart. In Verint's Q1 and Q2 2010 financial results, they cited an unnamed major customer whose sales were decreasing year over year. We do not know if this is Wal-Mart but it might be.

One other interesting element in March Network's results is the disclosure that they sell direct to Wal-Mart. For industry insiders, this is likely not surprising. However, it is a debated aspect of the surveillance business with lots of opposition from the channel. On the other hand, Wal-Mart is somewhat unique due to its massive size and negotiating expertise.

Comments : PRO Members only. Login. or Join.

Related Reports on Sales

Rare Video Surveillance Fundraising - Verkada $15 Million on Apr 19, 2018
Fundraising in video surveillance (and the broader physical security market) has been poor recently. Highlights are few and far in between...
Worst Access Control 2018 on Apr 18, 2018
Three access control providers stood out as providing the most problems for integrators. In this report, we analyze the answers to: "In the...
Eocortex / Macroscop VMS Company Profile on Apr 09, 2018
Eocortex is the international brand of Russian VMS manufacturer Macroscop. Macroscop was founded in 2008, and the Eocortex name created in 2013. We...
Top 4 Biggest Problems Selling Access Control 2018 on Mar 23, 2018
We received 150+ responses from integrators when we asked them "What is the biggest problem you face when selling electronic access control?...
Security Robot Sales Struggle on Mar 21, 2018
2 year ago, PSA Security CEO Bill Bozeman called security robots one of “the biggest game changers” in decades for security integrators. Just over...
Free Manufacturer Trip To China - CCTV.Net / Univew on Mar 15, 2018
Pack your bags? 'Closer than you think'? Well, a non-stop flight from NYC to Shanghai is 15 hours plus another 100 miles to Hangzhou...
Panasonic Selling Off Security Camera Factory on Mar 14, 2018
Panasonic is OEMing cameras from Dahua, as IPVM testing confirmed in 2017. Now, Panasonic is selling their security camera factory, according to...
Favorite Camera Manufacturers 2018 on Mar 12, 2018
A number of major moves in integrator's favorite camera rankings for 2018: Two manufacturers make major moves up One major manufacturer moves...
Avigilon Breaks $400 Million Revenue, Quadruples Profit, Weakens Competitiveness on Mar 07, 2018
The last annual Avigilon financials are here. With the imminent Motorola acquisition completion, Avigilon will cease to be an independent publicly...
Hanwha Techwin Spins Out Security Business on Mar 06, 2018
In an era of security acquisitions and mergers, with most recently Avigilon being acquired by Motorola and Bosch merging its security businesses,...

Most Recent Industry Reports

The Yolo Bro And The Death of Journalism on Apr 24, 2018
There's an old quote: The job of the newspaper is to comfort the afflicted and afflict the comfortable Unfortunately, the opposite is more...
DMP Adds Ring Video Doorbell Integration on Apr 24, 2018
Video doorbells have become one of the hottest items for security systems. After several years with no doorbell, DMP has announced integration with...
Milestone 2017 Financials Examined on Apr 24, 2018
For ISC West 2018, Milestone released ... their financials, touting "strong revenue growth in 2017". However, there were discrepancies with the...
Chinese Manufacturer Kickstarter Campaign Huge Success (EverCam) on Apr 23, 2018
In a week, a Chinese manufacturer's expertly done Kickstarter campaign has received $1.4 million in pledges, an incredible amount for a video...
Favorite Biometrics 2018 on Apr 23, 2018
Biometrics are on the rise, or at least integrator opposition to them is declining, according to new IPVM integrator statistics.   Almost half of...
Dahua and Hikvision Win Over $1 Billion In Government-Backed Projects In Xinjiang on Apr 23, 2018
Dahua and Hikvision have won well over $1 billion worth of government-backed surveillance projects in China’s restive Xinjiang province since 2016,...
May 2018 Camera Course on Apr 20, 2018
Save $50 on early registration until this Thursday, the 26th. Register now (save $50) for the Spring 2018 Camera Course This is the only...
Global Real-Time Video Surveillance - EarthNow on Apr 20, 2018
A new company, EarthNow, with backing from Bill Gates, Airbus and more, is claiming that: Users will be able to see places on Earth with a delay...
Dedicated Vs Converged Access Control Networks (Statistics) on Apr 20, 2018
Running one's access control system on a converged network, with one's computers and phones, can save money. On the other hand, hand, doing so can...
April 2018 IP Networking Course on Apr 19, 2018
This is the last chance to register for our IP Networking course. Register now. NEW - 2 sessions per class, 'day' and 'night' to give you double...

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