Iveda Solutions (IVDA): Bringing Security Systems into the Cloud
Iveda Solutions (IVDA): Bringing Security Systems into the Cloud
By Justin Kuepper · Tuesday, December 6th, 2011
Iveda Solutions Inc. (OTCBB: IVDA), a cloud-based provider of secure, enterprise-class managed video surveillance solutions, offers a new twist on traditional technologies provided by companies like The Brink’s Company (NYSE: BCO) and Ascent Capital Group Inc.’s (NASDAQ: ASCMA) Monitronics, with its innovative cloud-based services.
With nine years of experience in the market, the company’s platform agnostic and cloud-based approach benefits both customers and shareholders. Customers can realize lower costs and more reliable systems, while shareholders benefit from more predictable revenue streams, a highly scalable business model, and an enormous addressable market.
Revolutionizing Traditional Security Systems
Currently, most video surveillance is done using CCTV with on-site cameras, recorders and (believe it or not) VHS videotapes. These solutions are expensive to purchase, must be actively managed, and are prone to several potential security vulnerabilities. Moreover, failures can go un-noticed for a long time and maintenance can prove very costly.
Iveda Solutions combines existing hardware with a cloud-based hosted software solution to solve these problems. With lower overhead expenses and automated recording, its systems are easy to integrate and scale across multiple locations at a very low cost. And since it’s platform agnostic, the system can be installed with any existing hardware, making it very cheap to switch.
Business Model Could Unlock Significant Value
Most investors live by the motto that “cash is king” and cash flow matters. Since they have unproven sales strategies, most early-stage companies have unstable cash flows. After all, most companies realize cash only when they sell a product, while service companies must repeatedly find new clients to serve in order to keep the cash coming in the door.
Iveda Solutions’ business model generates revenue from multiple sources, including recurring revenue from services. And unlike many traditional service companies, its platform is highly reliable, scalable and very likely to be renewed after a customer initially signs on. The result is a highly predictable revenue stream that grows over time with relatively little friction.
A Great Investment Opportunity
A recent report from MarketsandMarkets, a research firm, indicated that the global video surveillance market is expected to grow from $11.5 billion in 2008 to $37.7 billion in 2015 at a CAGR of 20.4% from 2010 to 2015.
Last quarter, Iveda Solutions reported rapidly expanding revenues that jumped more than 220% to $588,339. Of this amount, 37% of its revenues were recurring service revenues, while 63% was from equipment sales and installation. To learn more about Iveda Solutions, please see the following:
Company Website
Latest SEC Filings
