Axis Communications, the global leader in network video¹, has published financial results for the first six months of 2007, which not only confirms Axis has a strong sales growth of 44 percent in its core market of network video products, but also fortifies the company’s market leadership globally and in the EMEA region, where net sales even amounted US$50 M compared with US$36 M for the year earlier period.
For the first six months of 2007, Axis Communications reported net sales of US$108 M, an increase of 39 percent over net sales of US$78 M for the corresponding period in the preceding year. Net sales revenue in the network video core product set climbed 44 percent to US$98 M, compared with US$68 M of the year-earlier period.
The company’s operating profit also increased significantly to US$23 M, compared to US$12 M for the first six months of 2006. The gross margin remained stable and amounted to 55.7 percent, compared with 54.2 percent for the first six months of 2006.
“The world market for network video surveillance products increased by an impressive 41.9% in 2006 and has the potential to grow even faster than this”, explained Simon Harris, Research Director at IMS Research. “With its good results in the last years, Axis Communications was able to strengthen its position as a leading camera manufacturer, and in 2005 was ranked 8th globally and 3rd in the EMEA region.”
Axis sees the market for network video to continue its sharp growth across all regions for the second half of 2007, and it aims to keep pace with the market. To face these challenges, the company will keep the close cooperation with its partners, one of Axis’ key success factors. As of June 30, 2007, Axis had approximately 11,000 sales channel partners and distributors, and more than 400 ADP partners. In light of the constantly increasing interest in network video products, Axis provides ongoing training for its partners.
The company that introduced the world’s first network camera in 1996 offers the market’s broadest network video portfolio today. In Q2 2007 Axis launched four innovative network video products: AXIS 216MFD, AXIS 211M, AXIS 215PTZ and AXIS 247S. AXIS 216MFD is a megapixel dome camera that delivers video at three times the resolution of an analogue camera. AXIS 211M is a megapixel camera suitable for professional installations in environments where detail accuracy is desirable, such as schools, stores, airports or banks. AXIS 215PTZ is a network camera that can pan 360 degrees, and accordingly, is particularly suitable for receptions, schools or offices. AXIS 247S is a compact video server that supports power supplied over the Ethernet (PoE).
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Gilles Ortega, country manager, of Axis Communications, MENA commented, “We are very happy to continue our consecutive growth in sales and profits which has helped us to strengthen our position as market leader in the fast growing network video sector. In order to maintain the pole position and to meet the increasing competition in the market, we will continue to launch innovative network video products, strengthen cooperation with sales channels, distributors and development partners, and pursue expansion and ongoing recruitment.”
¹Axis Communications is the global market leader of the network video market. The world market for network cameras alone will be worth more than $1 billion by 2010. The network camera market is set to have a CAGR of close to 38 percent per year over the next five years to reach a value of $1.3 billion by 2010, according to industry analyst house IMS Research (www.imsresearch.com) in its latest market report entitled ‘The World Market for CCTV and Video Surveillance Equipment 2006 Edition’ published in October 2006.
About Axis
Axis is an IT company offering network video solutions for professional installations. The company is the global market leader in network video, driving the ongoing shift from analogue to digital video surveillance. Axis products and solutions focus on security surveillance and remote monitoring and are based on innovative, open technology platforms.
Axis is a Swedish-based company, operating worldwide with offices in 18 countries and cooperating with partners in more than 70 countries. Founded in 1984, Axis is listed on OMX Nordic Exchange, Large Cap and Information Technology. For more information about Axis, please visit our website at www.axis.com
