Features Research
HID CEO predicts rest of 2009 will be a challenge for security industry

“There is light at the end of the tunnel and it isn’t a train,” HID
Global president Denis Hebert said during a press conference the
company held during ASIS International in Anaheim Sept. 21.

“With some notable exceptions, market conditions are impacting us and
our customers worldwide. This has been a difficult year for everybody
and it’s something we’re not used to as an organization,” Hebert said.

In his address to the press, analysts and customers, Hebert said HID
has “successfully shifted our concentration from top line growth to
bottom line performance while maintaining investments in quality,
service and innovation.”

“New construction is down substantially in North America and major
projects are being cancelled or are on hold, but the government health
care and education sector have some resilience,” he said.

He went on to identify “bright spots” for HID such as instant bank card
issuance, government projects, the health care sector in the U.S.
(largely due to Health Information Protection Act projects), the HID on
the desktop product line and high-growth geographic regions such as
China and India.

The balance of 2009 will “continue to be a challenge” he said, adding,
“Most analysts forecast a return to moderate growth conditions in the
second half of 2010.”

Hebert said HID’s main response to the downturn has been to stick to
its strategy — including moving forward with product innovation, and
being responsive to customers.

“History says that a downturn can also be a climate for innovation,” he said.

Despite the down economy, other companies, such as Johnson Controls,
reported market share growth during the ASIS show. In 2008, Johnson
Controls announced a three-prong strategy to grow its global security
and fire safety business. Through integrated security technologies and
solutions, targeted global outreach, and a focus on customers, the
company says its global market share grew three per cent and the
customer base increased to more than 50,000 businesses worldwide

Indigo Vision released news a week later indicating strong growth in North America.

IndigoVision, supplier of IP Security Management Systems, announced Oct
2 significant growth of sales in the Americas up 103 per cent with a 59
per cent increase in operating profits.

The company, in its results for the year ended July 2009, reported an
increase in total product revenues of 43 per cent to a record $43.7
million U.S. and operating profits increasing 5.4 million U.S.

The company said it continues to invest heavily in product development with a substantial increase in spend last year.

It recently launched a range of High-Definition (HD) IP cameras, which
were chosen by the Canada Border Services Agency (CBSA) for monitoring
US-Canada border crossings, in what is believed to be the largest ever
High-Definition (HD) IP Video surveillance system.

IndigoVision has also been chosen by several hotels and leisure
projects including the prestigious London Marriott Hotel in Kensington
and the new Mövenpick Tower & Suites Hotel in Doha, Qatar.

Casinos continue to be a strong performing sector for the company with
18 installations in North America, 11 of which were completed in the
last year. Airport wins were achieved in North America, Europe and
significantly in China and India, where strategic projects are underway
in Shanghai and Delhi.

Rail success was achieved in all major regions with the latest being the Santiago Metro in Chile.

Commenting on the results company CEO Oliver Vellacott said, “These are
great results achieved in a difficult economic climate. I am especially
pleased to be announcing our first ever dividend to shareholders.”