A glimpse at IP video spending in 1Q

I've been hearing anecdotally that spend on IP video has been slowing rapidly (as has analog) with the recession. Here's at least one actual indicator, in the 1Q results of Optelecom-NKF, which chose a couple years back to refocus its business on IP video surveillance. Since that link may be password protected, here's the dope:
Optelecom-NKF Reports First Quarter 2009 Results GERMANTOWN, Md., May 12 /PRNewswire-FirstCall/ -- Optelecom-NKF, Inc. (NASDAQ:OPTC) , a leading global provider of Siqura(R) advanced IP-video network solutions, today announced first quarter 2009 results. Revenues for the first quarter totaled $8.6 million, compared to $10.5 million for the same quarter of 2008. Video over IP-related revenue climbed 10% in the first quarter to $2.9 million, compared to last year's $2.6 million.
So, even though Optelecom is down fairly significantly for the quarter, IP video revenue is actually up 10 percent. That's pretty interesting. It could just be that the company has shifted resources to sell into that space particularly, but it's still a good sign.
The Company reported a net loss of $765 thousand, or $(0.21) per share, in the quarter ending March 31, 2009. This compares to net income of $148 thousand, or $0.04 per share, one year earlier. Adjusted EBITDA for the quarter (as defined in the addendum to this release) was a loss of $551 thousand compared to profit of $976 thousand for the same quarter last year.
Basically, the company went from making money to losing money. Let's hope that's the economy and not an indicator of a bad decision on the part of management to focus on IP video.
"The sharp contraction in the global economy was the dominant force affecting our first quarter performance along with a reduction in reported revenue from foreign exchange translation rates," said Ed Ludwig, Optelecom-NKF's Chairman and CEO. "Orders slowed this winter as customers delayed projects in the face of budgetary concerns. As we look for signs of a bottom in the economic contraction and we actively contain costs, I view our long-term business prospects with measured optimism based on feedback from current customers and visits we've had with prospective customers."
So, they say it's the economy, not the focus. Since Axis is one of the few IP video companies with public numbers, and they've had some rough times, it's good to see another IP video company at least succeeding at IP video, even if it hasn't made for a profitably quarter.