Vicon CEO: Market Acceptance of IP Quicker than Expected

Author: 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, 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 extending Vicon's streak of declining revenue. Net sales decreased 23%...
Axis Crushes Q1 2010 Financial Results on Apr 19, 2010
Now, there should be little doubt of the IP video's market growth rebound. After a year of rapidly deteriorating financial results, Axis strong...
Comments : PRO Members only. Login. or Join.

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