Verint's IP Video Financial Performance Examined

This update examines the financial performance for Verint's IP Video / "Video Intelligent" business unit over the past 3 years through January 30, 2010.

Verint's 2010 10k financial report includes a number of useful data points on the size and growth rate of their video surveillance business. [Note: Verint's overall business is much larger than video surveillance. As such, we focus only on the business unit focused on video called 'Video Intelligence'.]

• 2009 video surveillance revenue was $144 Million.
• In 2009, "revenue increased $18.0 million, or 14%, almost entirely due to the product delivery of an order from a major customer."
• 2008 video surveillance revenue was $127 Million
• Compared to 2007, "2008 revenue decreased $20.2 million, or 14%, due to timing of installations from a major customer, a decline in our distribution business in the APAC region, and a decline in Residual Method revenue due to the global economic downturn."
• 2007 video surveillance was $147 Million.
• "Product margins in our Video Intelligence segment increased to 61% in the year ended January 31, 2010 from 52% in the year ended January 31, 2009." Verint cited higher software component as the driving force for GM% increase.
• The video surveillance business is about 20% of Verint's total corporate revenue ($700 Million)
• Verint's video line is fairly broad including DVRs, VMS software, IP cameras, encoders, wireless devices, etc.

To give a sense of perspective of Verint's size, Verint's video surveillance business is roughly half the size of Axis and 50% greater than Dedicated Micros.