DTT’s growth levels off—to 18 percent

With concerns about ObamaCare and minimum wage largely resolved, specialty integrator looks to grow 20 percent in 2015
Wednesday, February 11, 2015

LOS ANGELES—Sam Naficy, DTT CEO, called 2014 a “tough year,” but the manufacturer and integrator of video surveillance solutions still grew 18 percent.

While most integrators would not lament an 18 percent jump in revenue, DTT is looking at it through the lens of a company that had “grown accustomed to growing 40 percent annually.”

DTT, a manufacturer and integrator of video surveillance solutions, ended 2014 “with roughly $2.5 million in contracted RMR. … [and revenue] of $30 million plus,” Naficy told Security Systems News.

There were a few reasons for the drop in DTT’s growth rate. A 40 percent growth rate is difficult to sustain as a company grows beyond the start-up phase, so it’s a normal leveling-off that happens at a certain stage of a company’s growth.

Other reasons had to do with public policy. DTT specializes in services for quick-serve restaurants and similar multi-location retail outlets that employ hourly-wage workers. Those outlets, Naficy said, were concerned about the effect of the Affordable Care Act and potential changes to the federal minimum wage. 

“Even though a lot of the chains were doing well, the owner-operators were very reluctant to spend,” Naficy said.

As the end of 2014 approached, however, DTT’s clients became more comfortable that questions about “Obama Care and the national minimum wage have been resolved to a great extent,” Naficy said.

DTT’s fourth quarter earnings reflected this lessening concern. “We had more than $200,000 in contracted-RMR in Q4 alone” he said.

Naficy estimates that DTT will see 20 percent growth in 2015, which would put the integrator at $3 million in RMR and about $36 million in revenue by year-end.

DTT has been owned by BV Investment Partners since March 2012. Naficy called the group “incredible partners, very patient.”

In 2015, DTT will explore services that provide “new sources of recurring revenue” and it will “keep its eyes and ears open for possible M&A activity,” Naficy said.