Vicon CEO: Market Acceptance of IP Quicker than Expected

By: John Honovich, Published on Apr 17, 2010

Following a string of poor performing quarters and plummeting revenue, Vicon's CEO offers a frank and challenging outlook for his company and analog incumbents. In his letter to shareholders in Vicon's 2009 shareholder report [link no longer available], he admits the following key points: 

  • For 2010, Vicon "anticipates capital expenditure funding, particularly in the private sector, to remain tight with intense competition for funded projects."
  • "The security industry transition to IP or network video greatly accelerated in 2009. In fact, almost all of the projects we now compete for employ network video to some extent."
  • "Quicker than anticipated market acceptance of IP video has accelerated camera technology and related user situational management applications"
  • "Anticipating the future of electronic security, it is apparent that software development will be a significant hurdle for the Company."
  • "As the security industry inexorably moves to software solutions from a predominately hardware orientation, the challenge of revenue growth becomes more acute."
  • "Given today’s user preference for IP based systems, Vicon’s future growth potential may be limited as a video only company."

We think this is a frank and fair assessment both of Vicon's challenges as well as their peers including American Dynamics, Pelco, Dedicated Micros, Honeywell, etc.

We called attention to the acceleration of IP video transition in March 2010.

2 reports cite this report:

No Good News for Vicon: Q2 2010 Results Examined on May 10, 2010
The financial challenges for Vicon continue with Q2 2010 financial results...
Axis Crushes Q1 2010 Financial Results on Apr 19, 2010
Now, there should be little doubt of the IP video's market growth rebound....
Comments : Members only. Login. or Join.

Related Reports

Huawei HiSilicon Shortage Impacts Surveillance Manufacturers on Aug 14, 2020
Huawei acknowledged problems and challenges for its HiSilicon chip business,...
Hikvision Global Revenue Falls, Hit By Coronavirus on Apr 27, 2020
Hikvision's global revenue fell in the first quarter of 2020 due to the...
ADT Slides Back, Disappointing Results, Poor Commercial Performance on Aug 06, 2020
While ADT had an incredible start to the week, driven by the Google...
NetPosa's Terrible Situation Worsens on May 19, 2020
NetPosa is fighting for its existence as the situation worsens for what was...
Dahua Profits Surge Due To Fever Camera Sales on Aug 25, 2020
While Dahua's overall revenue is down, driven by challenges within China, the...
Uniview H1 2020 Financials Examined on Sep 08, 2020
While Dahua and Hikvision, helped by fever camera sales, are recovering from...
Convergint Coronavirus Cuts on Mar 25, 2020
One of the world's largest security integrators, Convergint, has made a major...
Pivot3 Mass Layoffs on Mar 27, 2020
Pivot3 has conducted mass layoffs, the culmination of grand hopes, a quarter...
Costar Technologies / Arecont H1 2020 Financials Examined on Sep 16, 2020
Costar's financial results have been hit by the coronavirus with the company...
Coronavirus Hits Manufacturers, Standing Now, Worse To Come on Apr 06, 2020
Coronavirus is hitting security manufacturers, though overall modestly for...
The Future of H.266 For Video Surveillance Examined on Aug 17, 2020
First H.264, now H.265, is H.266 next? H.266 was recently announced amid...
JCI / Tyco Security Products Layoffs on Jun 05, 2020
Johnson Controls / Tyco Security Products has confirmed COVID-19 related...
Ambarella Speaks On Huawei, Shortages, And China on Sep 09, 2020
The Huawei Hisilicon shortage is impacting the global market, with major chip...
The Booming Multi-Billion Coronavirus Fever Camera Market on Apr 21, 2020
The market for elevated body temperature detection cameras, aka 'coronavirus...
Fever Camera Sales From Integrators Surveyed on Jun 01, 2020
Fever cameras are the hottest trend in video surveillance currently but how...

Recent Reports

FLIR CEO: Many New Fever Entrants "Making Claims That The Science Just Won't Support" on Sep 22, 2020
FLIR's CEO joins a growing number calling out risks with fever / screening...
China Bems Temperature Measurement Terminal Tested on Sep 22, 2020
Guangzhou Bems (brand Benshi) is the manufacturer behind temperature...
Axis Exports To China Police Criticized By Amnesty International on Sep 21, 2020
Axis Communications and other EU surveillance providers are under fire from...
Milestone XProtect on AWS Tested on Sep 21, 2020
Milestone finally launched multiple cloud solutions in 2020, taking a...
Mobile Access Control Usage Statistics 2020 on Sep 21, 2020
Most smartphones can be used as access control credentials, but how...
Axis Compares Fever Camera Sellers to 9/11 on Sep 18, 2020
Axis Communications, the West's largest surveillance camera manufacturer, has...
Avigilon Elevated Temperature Detection Camera Tested on Sep 17, 2020
Avigilon has entered the temperature screening market with the release of...
Chilean Official Investigated for Motorola And Hikvision Contracts on Sep 17, 2020
A corruption investigation is underway in Chile after a crime prevention...
Huawei HiSilicon Production Shut Down on Sep 17, 2020
Huawei HiSilicon chips are no longer being manufactured or supplied to...
Virtual ISC West and GSX+ Exhibiting Contrasted on Sep 17, 2020
Both ISC West and ASIS GSX are going virtual this year, just weeks apart, but...
X.Labs Sues FLIR on Sep 16, 2020
X.Labs, the maker of Feevr, has sued FLIR, the publicly traded thermal...
Video Surveillance 101 September Course - Last Chance on Sep 16, 2020
Today is the last chance to sign up for the Fall Video Surveillance 101...
No Blackbody Mistake, Half Million Dollar, Hikvision Fever Camera System in Georgia on Sep 16, 2020
A Georgia school district touted buying Hikvision fever screening "about...
Costar Technologies / Arecont H1 2020 Financials Examined on Sep 16, 2020
Costar's financial results have been hit by the coronavirus with the company...
Startup Cawamo Presents Live Alerts With Edge AI and Cloud VMS on Sep 15, 2020
Cawamo, an Israeli edge-to-cloud analytics and VMS startup, presented its...