Security

What do the Axis Communications Financial Results tell us about the State of Global Video Surveillance?

Axis Communications recently reported a very positive Q1 2017 performance with net sales increasing by 29% and profit increasing by 53% with operating margin growing to 11.6%. Of course “one swallow does not make a summer” but Axis sales in two of their three main regions, the Americas and Asia have shown consistent growth since the first quarter of 2016. The exception is in EMEA where sales have fallen in the last quarter but this reflects a general fall in growth in this region. Another encouraging benchmark is that R&D spending grew 30%, showing that they are continuing to invest in product developments and advancements. This would suggest that it has not yet been adversely affected by Hikvision’s strategy of going for volume through relentless price reductions and seemingly little concern for profitability. There is no doubt that that this strategy has rapidly increased Hikvision’s share of the world market and reduced the share of […]

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