Vicon Steep Revenue Decline

By: Carlton Purvis, Published on May 15, 2013

We have been following Vicon's slow, downward spiral since 2009 and the company's struggles continue. The company's revenue fell steeply in the second quarter of FY 2013, and the company is even selling its New York headquarters to save money, according a financial report [link no longer available] filed this week. In this post we examine the report. 

Revenue / Profit

  • Vicon quarterly revenue fell 30% from $12.5 million to $8.6 million. Vicon cites weak European markets and technical problems related to the new release of the company’s software.
  • In both its geographic markets revenue was down significantly. In North America it was down 27% while in EMEA sales decreased 38%. It is clearly far more than Europe.
  • The backlog of unfilled orders increased $1.6 million over six months, but that would only contribute to a fraction of Vicon's overall drop in revenue. 
  • Quarterly losses increased from $280,527 to $1.4 million (16% operating loss)
  • Gross profit margins fell 39.7% to 38.9%. Typically surveillance companies are in the 50% or higher range, placing Vicon on the bottom tier of gross margins. 

Cash Position / Office Sale

  • Cash decreased $1.7 million. They started the fiscal year with $6.2 million and are now down to 4.5 million.
  • Vicon is selling its headquarters building for $6 million and has purchased a new facility for $3.3 million. The company hopes the two transactions will generate $2.5 million to help it meet its operating costs and expenditures for the next year.

Market Capitalization

The stock price is down more than 50% in the last 3 years (see stock chart) and their market capitalization is ~$12 million USD.

R&D Expenditures

Research and development expense decreased year over year from $1.31 million to $1.06 million, a drop of 19%. As a percentage of revenue, R&D is now 10%, down from 13%. Given their admitted challenges in shipping their release, such declines may make it even more challenging.

What's Next?

While Vicon was once one of the largest and most prestigious surveillance manufacturers, it will be very challenging for them to recover from this steep decline.

Calls and emails to Vicon about the report were not returned.

1 report cite this report:

ONVIF Camera Code Open Source'd (Vicon) on Mar 30, 2016
Vicon is joining the open source community by releasing their ONVIF and camera source code, something relatively unheard of in the security...
Comments (0) : PRO Members only. Login. or Join.

Related Reports on Financial Updates

ASCMA / Monitronics Declares Chapter 11 Bankruptcy on May 22, 2019
Monitronics is entering into Chapter 11 bankruptcy. The company, also called Ascent Capital Group Inc., aka ASCMA, aka Brinks Home Security,...
Milestone Execs on Financials, China and Future on Apr 29, 2019
Milestone has released a 44-page annual report for 2018, an atypical and unrequired move for a subsidiary of a large company, however, Milestone...
ADT Stock Drops After Announcing Loss And Amazon Delay on Mar 12, 2019
ADT's stock price dropped significantly after reporting heavy losses and delays in its Amazon partnership, as seen in the screenshot below: In...
Hikvision 2018 Revenue Tops $7 Billion USD But Growth Slows To Low on Feb 15, 2019
Hikvision's annual revenue topped $7 billion for the first time in 2018, although growth slowed sharply. In this post, we analyze the latest...
Barnes Buchanan 2019: Despite 'Strange Narrative' Great Time To Be In Security on Feb 11, 2019
A "strange narrative" is being spun, said Michael Barnes [link no longer available] at the 2019 Barnes Buchanan Conference. However, despite that...
Hikvision Growth Declines Q3 2018 on Oct 22, 2018
Hikvision's growth continues to decline in 2018 going from: Q1 - 33% Q2 - 22% Q3 - 14.6% In this note, we examine Hikvision's newest Q3...
Axis Strong US Growth, Flat EMEA - Q3 2018 Financials on Oct 18, 2018
This spring, Axis had its best financials in many years (see Axis Strong Q2 2018 Results). However, over the summer, Axis had many products sold...
Axis Strong Q2 2018 Results on Aug 20, 2018
Axis reported strong Q2 2018 financial results and, for the first time in many years, Axis grew faster than Hikvision. However, the company's...
Hikvision Strong Domestically, International Business Struggles on Jul 25, 2018
Hikvision's H1 2018 results are out. Overall revenue growth has sharply dropped, with the company acknowledging their "facing geopolitical...
Arlo IPO Filing Reveals Key Financial and Competitive Details on Jul 09, 2018
Arlo is going to IPO at a projected valuation greater than Axis. Now, Arlo has released their 175-page Form S1 Registration Statement for its...

Most Recent Industry Reports

Alarm Veteran "Demands A Criminal Investigation" Of UL on Oct 18, 2019
The Interceptor's Project pressure against UL continues to rise. Following Keith Jentoft's allegation that "UL Has Blood On Their Hands", Jentoft...
Camect "Worlds Smartest Camera Hub" Tested on Oct 18, 2019
Camect is a Silicon Valley startup that claims the "Smartest AI Object Detection On The Market", detecting not only people and vehicles, but...
Hikvision Global News Reports Directory on Oct 17, 2019
Hikvision has received the most global news reporting of any video surveillance company, ever, ranging from the WSJ, the Financial Times, Reuters,...
Camera Calculator V3.1 Release Improves User Experience on Oct 17, 2019
IPVM has released a new version of our Camera Calculator, V3.1, with significant user experience improvements, a new development plan, and an...
Securing Access Control Installations Tutorial on Oct 17, 2019
The physical security of access control components is critical to ensuring that a facility is truly secure. Otherwise, the entire system can be...
Access Control Course Fall 2019 - Last Chance on Oct 17, 2019
Register Now - Fall 2019 Access Control Course. Thursday, October 17th is the last day to register. IPVM offers the most comprehensive access...
US DoD Comments on Huawei, Hikvision, Dahua Cyber Security Concerns on Oct 16, 2019
A senior DoD official said the US is "concerned" with the cybersecurity of Hikvision, Dahua, and Huawei due to "CCP" (China Communist Party)...
Pelco Sarix Pro3 Camera Tested on Oct 16, 2019
Pelco has released their Sarix Professional Series 3 cameras, claiming "more security detail in challenging scenes with excellent low light and...
IPVM Camera Calculator User Manual / Guide on Oct 16, 2019
Learn how to use the IPVM Camera Calculator. The guide below includes instructions, images, gifs, and videos demonstrating and explaining the...
Altronix Claims Tango 'Eliminates Electricians' on Oct 15, 2019
Power supply provider Altronix claims its new Tango power supply 'eliminates the need for an electrician, dedicated conduit and wire runs'. In...