Mobotix's Q2 2011 Strong Results Examined

JH
John Honovich
•Published Aug 26, 2011 00:00 AM
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In this note, we we examine the detailed financial performance of megapixel camera manufacturer Mobotix for the Q2 2011 calendar quarter including revenue, revenue growth, gross margins, net margins and breakdowns by product categroy and region. 

Financial performance remains quite strong with no signs of impact from the slowing global economy. 

Key metrics summarized from the 2011 fiscal year summary report:

  • 33.7% revenue growth for calendar Q2 2011 year over year
  • Total revenue for past 12 months is 73 Million Euros (approximately $105 Million USD)
  • 73% gross margins - an extremely high number relatively to its peers (average 52% to 62%)
  • 18% net margins - a quite high number number (average 10-14%)
  • 52.7% increase in dome sales vs 22.3% increas in fixed cameras (dome total revenue at 36.9 million euros vs 32.7 million euros for box cameras)
  • 63.3% revenue growth outside of Europe (including 42.7% in the US) versus ~22% revenue growth inside of Europe; European growth is solid but international expansion was key to overall growth. 
  • No specific guidance was provided on the T24 door station sales though it is part of the faster growing dome category segment
  • Mobotix wants to be the technology leader in the door station segment in the short term; entirely possible given that no other major supplier is targeting their efforts in this niche
  • Forecasting 30-35% revenue growth for the next 12 months. This is a very bullish projection especially given overall macroeconomic concerns.
  • Mobotix reiterated its contrarian approach to the industry norm of open standards: "MOBOTIX is differentiating itself from its competitors by acting as a onestop shop for complete projects while at the same time putting pressure on pure-play software providers by offering its own control center software free of charge"

Over the past year, Mobotix's stock price has doubled from ~30 Euros to 60. Market capitalization is now ~$400 Million USD or roughly 4x sales - a strong level compared to the 1x to 2x company in the surveillance industry.

Earlier this year, we noted a number of potential problems for Mobotix. Clearly, those problems created no material issues in the past quarter. We do remain cautious about future growth especially since new product releases continue to be minimal.