Vivotek Revenue Soars

By John Honovich, Published Aug 05, 2019, 10:55am EDT

Vivotek's revenue has soared so far in 2019, growing 45%.

vivotek revenue soars

Inside this note, we examine import records and see who is driving Vivotek's growth and what newest Vivotek customer is just about to come online.

We also contrast Vivotek's growth to other Taiwan video surveillance manufacturers, revealing a noteworthy difference.

Executive *******

******* *** ~$*** ******* USD ** **** *** is ** **** ********* to ** ~$*** ******* in ****. ****'* * quite ******** ******** *** video ************ **** **** ~10 ****** ***** ********* doing **** **** ****.

*************, *** *** *** ODM ********* *** ******* are *** ****** ****** providers ****** *** *******. These *** **** **** as **** ****** *** Verkada ******* ***** *** firmware *** ********.

******* **** **** ** boosted ** *** *** customer ********* *** ** adding *** '** ******' so **** *** ** company *** **** ** cameras **** *** *** banned ** *** ** government (****** *** **** *****, ******** ********* **** to ***** **** ** detail).

Importers *********

*****,**** *** ****** / spreadsheet, ** * ********* of *******'* *** ** importers *** *** **** 12 ****** (****** **** to **** ****):

**** ** ***** ** weight, *** ****** *****, and ******* ***** *** their *** ********* ***.

******* **** ************ *** just ****, ***** *** strongly ****** *** ******* sales **** **** **** Verkada ********* **** **** Vivotek's *** ******* ********:

*****, **** ** ***** on ******, *** ****** value. **** **** ****, it **** ********** *******'* rapid ******, ** *** company **** ******* ******* in *** **** * years.

Newest *********

********* *** **** ********** by ******* ******** ** Dahua *** ** ****** OEMing. ***, ********* ** OEMing ******* ***. ***** Honeywell ******** ** *******, our ****** ** ***** ********* ********* ***** ** is ** ***** ********** copy ** *******'*.

** ****** ** *********'* large ******* ****, **** despite ** ***** ******* OEM, **** ****** ** good *** *******'* ********.

Branded ******* ******** *** ******

***** ******* ** ***** well **** *** *** OEM *****, ***** ******* business, ** ***** ** the ***, **** *** seem ** ** ******. While ******* ******** *** Hanwha **** ************ ***** advantage ** *******, *** NDAA, ***. ******* *** not ****** ******** ** funding * ******* **** of *********.

** *** *** ****, it ** * *** confusing, ***** **** ** a ***** *********** *** Vivotek ** ***** *** branded ********. ** *** other, ******* ** ********* doing ***** **** ************* for ****** *** ***** such ********* ****** **** their ********* ** *** compete **** ****.

Taiwan ************* ***** **********

******* ** *******,********* *********** ***** ****** ************* doing ******:

  • ********* ******* ** **** 17.8% ** ** ****
  • ********* ******* ** **** 23% ** ** ****
  • **** ******* ** ** 7.2% ** ** ****, though **** *** **** being **% *** *** first * ****** *** then *** ***** ********* the **** ** ** 2019

********* ** *** *** that **** ********* ** since ********* *** ************ been ** *** ** the ******* ********* ****** be ********* ** ****.

*******

** *** ****** **** we *** ********** ** upswing ** ******* ********* (e.g., ****** *** ******* and ** * ****** extent *********), ******* ** well-positioned. ***** ********* *** unlikely ** **** ** manufacturer ********** *** *** security *******, ******** ** go ** ***** *** Hikvision. *******, *******, **** all **** **** **** switching ** ***** ******** manufacturers *** ******* *** shown ** ********** ** capitalizing ** *** ******* for ***-******* ******* ********.

Comments (39)

Have any Korean companies capitalized on getting their cameras OEMed by Western companies?

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Good question. There may be, I am not sure. From what we hear, a number of manufacturers are in the process currently of switching OEMs.

Generally, I would think Korea would be less likely to capitalize as OEM since their pricing is generally higher. On the other hand, no video surveillance manufacturer has benefited more than Korean Hanwha who has invested heavily at the opportune time that the China backlash was building, though Hanwha leads with their own brand, not OEMing.

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I believe idis has an odm business that is also doing well.

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I wonder if you can flash a Meraki or Verkada camera with Vivotek firmware to take away the proprietary-ness?  Anyone wanna take a chance?  I'd try if but I don't have any to test on.

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Vivotek firmware and software is completely different than Meraki and Verkada. It's not like a Hikua where only minor UI differences exist with their OEMs. Also, as cloud services, Meraki and Verkada do not let you even upload firmware, all of that is managed by them.

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99.9% certain you could not.

I have been part of companies that have used Vivotek for ODM manufacturing, the devices were completely proprietary in the sense that while Vivotek assisted with portions of the design and performed the manufacturing there were no Vivotek "Default" chipsets, firmwares, etc. used. You could not use Vivotek firmware on these Vivotek-built devices anymore than you could load Avigilon firmware on them.

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So Vivotek basically just provides the camera without any PCB inside?

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No, what they typically ship out is a fully functional camera. Part of the manufacturing process is to load whatever firmware is supplied by the ODM customer. They could theoretically ship out a camera with no firmware, which is more common in the beginning phases, when the ODM customer may not have a fully complete firmware yet, and needs development units for testing.

The PCB inside the camera will utilize components and a layout that is specific to that ODM customer, based on the customer's design and requirements.

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In that case, since the hardware is the same you could flash a Vivotek firmware on the Verkada/Meraki using JTAG/SWD.

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I have no idea how you draw that conclusion from my comments.

 

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Sorry, I didn't read your second paragraph. I mistakenly thought the hardware was the exact same. My bad.

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I would think UDP and Hitron out of South Korea would be starting to benefit from the ban.

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That's a good thought.

I found Hitron's Q1 numbers and they are down 20%+ year over year:

For scale, they did about $32 million USD last year (if my conversion from SKW is correct) and are net moderately down since 2015:

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Ouch.

There are 4 "no-namers" on the list that outrank Pelco. I have no idea how many models Pelco was using Vivotek for, but I have a feeling this ranking is roughly representative of Pelco's general ranking in terms of sales relative to a bunch of random unknowns hustling products online/Amazon, or in local markets.

That new Pelco CEO is going to be in for quite a ride.

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Who is Trenton?

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Records show it is Trenton Systems - "Most Reliable Rugged Servers. Period." LinkedIn shows 48 employees and the following description:

Established in 1977 as a repair and refurbishment facility, Trenton soon evolved into an industrial-quality custom contract manufacturer of printed circuit board assemblies and later into a pioneer in the embedded computing industry. Today the company is a global leader for board-level products and systems technology.

Here are the 107 import records for Trenton in the past year.

Interestingly, Hikvision is also a notable supplier for Trenton:

What Trenton is doing with Vivotek and Hikvision I am not sure. Anyone with information, please share.

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Any chance they have some sort of contract with distribution or even the manufacturers for building/staging of DVR/NVR units or staging some equipment? They look to be similar to an MBX type of shop.

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Some info on

https://www.linkedin.com/company/trenton-technology-inc-

Established in 1977 as a repair and refurbishment facility, Trenton soon evolved into an industrial-quality custom contract manufacturer of printed circuit board assemblies and later into a pioneer in the embedded computing industry. Today the company is a global leader for board-level products and systems technology.

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Does Verint use Vivotek cameras that are just relabeled?

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Verint is pretty tight-lipped and their now tiny market presence in video surveillance helps obscure it further.

However, this 2013 user manual for a Verint IP camera shows the same layout that Vivotek uses, screencap:

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Vivotek cameras are outstanding.

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NOTE- Biased Comments here as we are the Vivotek field sales rep firm for the Central US for 9 years now, but the quiet attraction to Vivotek has several notables:

1)  Their quality control has been as good as anyone's, especially 10+ years ago when other brands were struggling with their early entry into IP. Vivotek has been making IP cameras for almost 20 years now. Their labs in Taiwan really put their models through their paces.

2) Channel Partner Program- While just about everyone has a dealer program these days, Vivotek joined the club just a few years ago and as dealers become aware they can earn pricing advantages with Vivotek also, they have become more deliberate in specifying the brand.

3) Vivotek is not among the multiple vendors that are always on sale somewhere every month. This leads to more stable street pricing (read profitable) and more integrity to the Project Registration objective.

To IPVM's point, Vivotek could be more overt about their Taiwan heritage. We generally find that to be down the list of interests to dealers, but one that helps affirm their decision when choosing a quality manufacturer.

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To clarify, Vivotek (branded) needs more of the basics - more feet on the street, more market presence at events, etc. Hanwha does not sell at the level they do just because of their products, you need people out there to sell this type of equipment.

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200% Correct John!

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Look for Vivotek to up their marketing expenditures very soon.  FINALLY.

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Why will Vivotek up their marketing expenditures now? I obviously agree it would be prudent but if they have not done it this long, why is now the time they figure it out?

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They have realized it takes real marketing if they want to get up with the big names.  They have the quality no doubt, the philosophy, and the experience.  It is time to come out of their preferred "behind the scenes" conservative approach. 

Capitalize on the bans.  Revenue is soaring.  Why not now?  Go big or go home.  Just like Hanwha did and done it well in all aspects.  Of course they don't have the pockets Hanwha has nor does their parent company Delta, but they are going to put their foot forward with more force going forward.

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CRL? Who?

I've never heard of this company, nor its owner (the company appears to be a one or few person shop) and they list no other video surveillance nor security clients:

Maybe Vivotek USA had no PR firm before but this does not have the indicators of a strong move. If Vivotek's PR firm is reading this, happy to do a call and give them some insight into the industry, etc.

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Maybe Vivotek USA had no PR firm before but this does not have the indicators of a strong move.

It's worse, it's more of an indication of weakness or lack of strategy. CRL's other clients are a bunch of C and D list players in their respective industries (eg: Boss Audio is the stuff you find in the Walmart automotive section).

Why put out a press release on this? Vivotek is calling attention to the fact that they need to rely on some small 1-man shop, with no apparent industry experience, to get their message out?

 

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Agreed. Camera side dewarp of 12mp fisheye camera is a game changer.

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probably irrelevant to their perfomance but their user interface needs an update in my opinion. Looks very 2000 and late.

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Couldn't agree more, I feel like it is a 20yr old GUI.

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Couldn't agree more, I feel like it is a 20yr old GUI.

Does it require ActiveX or Silverlight or something?

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Unfortunately, yes, Active X.

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On the one hand, it is a bit confusing, since this is a prime opportunity for Vivotek to build its branded business. On the other, Vivotek is evidently doing quite well manufacturing for others and often such customers prefer that their suppliers do not compete with them.

this is very common OEM mentality which i have seen in many TW/KR manufacturers and it prevented them from growing their own brands. Once manufacturing moved to China, many of the TW and KR OEMs just withered and died because they were no longer cost-competitive and did not have brand recognition to rely on. i hope for vivotek they wont make this mistake again. 

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Vivotek came to market as a second tier brand positioned as a good alternative for those who couldn't afford Axis, Sony, etc.. It's pretty hard to break that perception once established regardless of product quality, performance, and support. And Taiwan driven marketing hasn't helped. But there may be a window of opportunity in the market right now to change this if they commit some resources and find the marketing expertise.

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I would use them for their fixed lens value line, except they only have wide angle lenses available.  They used to offer 2.8/4/6/8 mm options.  We actually had a special tool that would allow us to switch in the field with seperately sold lenses.  This is why we most commonly use Hanwa nowadays.  (I believe it is the same with Axis in their value series).  How do you view a hall at any distance with a 2.8.  (we have hundreds of FD8134 cameras from 2011-2014 in the field still chugging along, though the onboard motion is really bad and unreliable, and did not improve with the FD8X35H line, which caused us to finally stop using them).

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we have hundreds of FD8134 cameras from 2011-2014 in the field still chugging along

Good thing you weren't using the previous 7000 series from the previous year.  I ripped almost every 7000 series camera I ever installed because they all had a nasty tendency to die after about 3 years.  Worst of the lot was the 7163 2MP bullet.

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