Vicon Achieves Best Quarter in Years

After a long stretch of sharp revenue declines, in Q4 2010, Vicon recorded its best financial results in years. Compared to Q4 2009, revenue was up 6%. While this is modest growth overall, this is much better than the past few years where year over year revenue declines of 15% - 25% were common (e.g., Vicon revenue plummeted in Q4 2009).

Q4 2010 edged up to $11.7 Million USD putting the company on pace for $45 - $50 Million USD annual revenue. However, this remains far off their peak revenue of nearly $70 Million in 2007.

On a regional basis, US revenue was up 15% while foreign revenue (primarily Europe) declined 7%.

Vicon did not cite any specific drivers for the growth. However, we expect it is a combination of improved US economy and Vicon's focus in the last few years of expanding its IP video portfolio.

Since October, Vicon's share price has jumped about 33% from as low as $3.60 per share to $5.00 now. The company's market value, however, is about $22 - $23 Million, about 1/2 of sales, a fairly low ratio.