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‚Äôs 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...
Comments (0) : Members only. Login. or Join.

Related Reports

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...
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...
Dahua Revenue Plunges, 3 Execs Resign Q1 2020 on Apr 29, 2020
Dahua's sales dropped by 19.47% in the first quarter of 2020 amid the...
Dahua Revenue Grows But Profits Down, Cause Unclear on Oct 20, 2020
While Dahua's overall revenue was up more than 12% in Q3 2020, a significant...
Terrible Convergint Coronavirus Thermal Camera Recommendation on Apr 01, 2020
A week after Convergint disclosed falling revenue, pay and job cuts,...
Convergint Outlook Turns Negative on Apr 16, 2020
Convergint's outlook has turned negative, according to bond rater Moody's,...
Latest London Police Facial Recognition Suffers Serious Issues on Feb 24, 2020
On February 20, IPVM visited another live face rec deployment by London...
Hikvision Q3 2020 Global Revenue Rises, US Revenue Falls on Oct 27, 2020
While Hikvision's global revenue rises driven by domestic recovery, its US...
Chile Cancels 1,000 Camera Hikvision Project on Oct 12, 2020
Six months ago, Chile awarded a 1,000-camera project using Hikvision. The...
Pivot3 Mass Layoffs on Mar 27, 2020
Pivot3 has conducted mass layoffs, the culmination of grand hopes, a quarter...
Axis Compares Fever Camera Sellers to 9/11 on Sep 18, 2020
Axis Communications, the West's largest surveillance camera manufacturer, has...
Chilean Official Investigated for Motorola And Hikvision Contracts on Sep 17, 2020
A corruption investigation is underway in Chile after a crime prevention...
Six Flags' FDA Violating Outdoor Dahua Fever Cameras on Oct 26, 2020
As Six Flags scrambled to reopen parks amid plummeting revenues caused by the...
Uniview H1 2020 Financials Examined on Sep 08, 2020
While Dahua and Hikvision, helped by fever camera sales, are recovering from...

Recent Reports

Recruiters Online Show LIVE Today! on Oct 29, 2020
IPVM's 7th online show resumes today with 12 recruiters presenting themselves...
Hikvision AcuSense G2 Camera Test on Oct 29, 2020
Hikvision has released their next generation of AcuSense analytic cameras...
Biggest Problems Selling Access Control 2020 on Oct 29, 2020
Access control can cause integrators big headaches. What practical issues do...
Taiwan Geovision AI Analytics and NDAA Examined on Oct 29, 2020
Taiwan manufacturer Geovision's revenue has been falling for years. However,...
Bedside Cough and Sneeze Detector (Sound Intelligence and CLB) on Oct 28, 2020
Coronavirus has increased interest in detecting symptoms such as fever and...
Fever Tablet Thermal Sensors Examined (Melexis) on Oct 28, 2020
Fever tablet suppliers heavily rely on the accuracy and specs of...
Verkada Fires 3 on Oct 28, 2020
Verkada has fired three employees over an incident where female colleagues...
Eagle Eye Networks Raises $40 Million on Oct 27, 2020
Eagle Eye has raised $40 million aiming to "reinvent video...
Hikvision Q3 2020 Global Revenue Rises, US Revenue Falls on Oct 27, 2020
While Hikvision's global revenue rises driven by domestic recovery, its US...
VICE Investigates Verkada's Harassing "RawVerkadawgz" on Oct 26, 2020
This month, IPVM investigated Verkada's sexism, discrimination, and cultural...
Six Flags' FDA Violating Outdoor Dahua Fever Cameras on Oct 26, 2020
As Six Flags scrambled to reopen parks amid plummeting revenues caused by the...
ISC Brasil Digital Experience 2020 Report on Oct 23, 2020
ISC Brasil 2020 rebranded itself to ISC Digital Experience and, like its...
Top Video Surveillance Service Call Problems 2020 on Oct 23, 2020
3 primary and 4 secondary issues stood out as causing the most problems when...
GDPR Impact On Temperature / Fever Screening Explained on Oct 22, 2020
What impact does GDPR have on temperature screening? Do you risk a GDPR fine...
Security And Safety Things (S&ST) Tested on Oct 22, 2020
S&ST, a Bosch spinout, is spending tens of millions of dollars aiming to...