Vicon 2011 Financials Examined

Author: John Honovich, Published on Dec 21, 2011

Over the last few years, CCTV pioneer Vicon has become a poster child for the trials and tribulations of incumbents moving into the new world. In the past few years, revenue has fallen by more than 30%. Now, Vicon's 2011 financial results are in and while revenue has stabilized, profitability plunged.

Let's start by reviewing Vicon's 2011 10K financial statement:

  • Total revenue is fairly stable dropping only 3% year over year from $48.6 M USD to $47.1 M USD.
  • However, operating losses surged from $1.9 M USD in 2010 to $9.5 M USD in 2011. That is an operating loss percentage of 20% - extremely bad.
  • Driving the losses was a steep fall in gross margins dropping from 42.1% in 2010 to 38.6% in 2011. A 3.5 point decrease in a year is troubling especially considering management acknowledged this being driven by increased competitive pressures.
  • Current assets dropped from $36.6 M USD in 2010 to $27.5 M USD. Cash and marketable securities almost decreased in half from ~$14 M USD to ~$7.6 M USD. These are bad indicators for company liquidity.
  • The stock price is down about 28% this year from $4.60 per share to $3.30 per share. Market capitalization is ~$14 Million or about 0.3 times revenue. This is extremely weak even relative to the modest valuations in the surveillance market.

Vicon's Future

According to the report, "The Company believes that it has sufficient cash to meet its anticipated operating costs and capital expenditure requirements for at least the next twelve months."

We are not sure if Vicon has a medium to long term future. We cannot even find any positive forecast or pitch even in the report. We also do not see how they can position themselves competitively, especially with such growing losses and weakening cash position.

Comments : PRO Members only. Login. or Join.

Related Reports

ADT Stock Drops 50% Since IPO on May 17, 2018
It has been a brutal 4 months for ADT. They first expected to IPO at ~$18. They IPOed at $14, dropping immediately to $12.39 And now, not even...
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...
US / China Tariffs Impact on Video Surveillance on Mar 23, 2018
On March 22, 2018, the US issued a Presidential Memorandum on the Actions by the United States Related to the Section 301 Investigation, with 3...
ADT Hammered Again, Loses Another Billion In Market Cap on Mar 16, 2018
ADT's CEO told investors that, 'in baseball terms', ADT was batting 5 for 5. But investors told ADT's CEO, 'in baseball terms', that he was...
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...
Arlo, Bigger Than Avigilon, More Valuable Than Axis on Feb 08, 2018
Arlo, the wireless IP camera offering that Netgear bought ~5 years ago for a few tens of millions is now doing more revenue than Avigilon and...
Axis Breaks 1 Billion USD Annual Revenue on Jan 26, 2018
Axis Communications annual revenue has exceeded $1 billion for the first time in 2017. In this note, we examine Axis financial performance over...
Imperial Capital Security Investor Conference Review on Dec 08, 2017
Investment bank Imperial Capital holds an annual Security Investor Conference where 60+ companies present, including this year: IPVM bought a...
Sentry360 Bankruptcy on Nov 30, 2017
Sentry360, a US-based video surveillance manufacturer, most well-known for its panoramic cameras, has filed for Chapter 7 bankruptcy. In this...
Axis Q3 2017 Financial Results on Oct 23, 2017
A big issue for Axis this past quarter was their product shortage. Despite that, new Q3 numbers for Axis show solid financial results. In this...

Most Recent Industry Reports

Software Only VMS vs NVR Appliances on May 23, 2018
Should you buy your own PC/server and load VMS software on it or get a turnkey appliance (both hardware and software, e.g., NVR, Hybrid DVR) from a...
Buy Arecont: Top Bid $10 Million Cash on May 22, 2018
Last year, Arecont had a deal for a purchase price of $170 million (see Failed Arecont China Acquisition). This year, Arecont has a deal for a...
Installing Box Cameras Indoors Tutorial on May 22, 2018
This tutorial starts our physical installation for video surveillance series, starting with Box Cameras, one of the oldest and most basic types....
The Hikvision Smart Classroom Behavior Management System on May 22, 2018
Hikvision's rapidly growing offering of analytics, which we most recently examined with Hikvision's ethnic minority analytics, is now going into...
Dahua Intrusion Analytics And VMD Tested on May 21, 2018
Dahua ships basic analytics on practically all their cameras, ranging from low cost to high end. To see how these analytics work in real world...
Exacq Improving Technical Support, Responding To Integrator Complaints on May 21, 2018
Exacq had been a long-term favorite of integrators, but since their 2014 Tyco acquisition, Exacq has fallen in IPVM integrator studies (though...
Best Manufacturer Technical Support 2018 on May 21, 2018
While 5 manufacturers made the worst technical support 2018 list, only 3 stood out as providing the best technical support to 190+ integrators in...
Stealth / UCIT - Remote Video Monitoring Provider Profile on May 18, 2018
Can 2 remote video monitoring companies, Stealth Monitoring from the US and UCIT from Canada combine to impact the market and compete in a changing...
Cybersecurity for IP Video Surveillance Guide on May 18, 2018
Keeping surveillance networks secure can be a daunting task, but there are several methods that can greatly reduce risk, especially when used in...
Forced Entry / Duress Access Tutorial on May 17, 2018
Even though access control normally keeps people safe, tragedies have revealed a significant issue. If users are forced to unlock doors for...

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