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Devcon deregisters

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Saturday, October 11, 2008
In what appears to be a money-saving move, the Florida-based super-regional security company Devcon announced yesterday that it was deregistering itself from the SEC. This means that it won't have to file certain forms with the SEC. It is able to make this move because it has fewer than 300 people who hold its common stock. The deregistration is effective yesterday, Oct. 10. Devcon had been trading on the OTCBB since May when it was delisted from NASDAQ. Here's a story I wrote about that. At that time, Devcon's president Robert Farenhem told me the move had nothing to do with the underlying health of the business. From the story: Rather, he said, this move is necessitated by a breach of technical requirements to be listed on Nasdaq exchange, which he characterized as “harsh accounting requirements that security businesses suffer.” Devcon was notified in mid April that it was out of compliance with the Nasdaq requirement that it have a minimum of $10 million in shareholder equity. “Two and a half years ago we had $2.5 million in RMR,” Farenhem said, “and today we have $3.6 million in RMR … but over that period of time we have amortized about $40 million [for the purchase of Guardian International in 2007].” The Devcon statement yesterday said that Devcon "expects, but cannot guarantee, that its common stock will continue to be quoted on the Pink Sheets after it is deregistered." I'll be following up on this in the December issue.

Devcon deregisters

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Saturday, October 11, 2008
In what appears to be a money-saving move, the Florida-based super-regional security company Devcon announced yesterday that it was deregistering itself from the SEC. This means that it won't have to file certain forms with the SEC. It is able to make this move because it has fewer than 300 people who hold its common stock. The deregistration is effective yesterday, Oct. 10. Devcon had been trading on the OTCBB since May when it was delisted from NASDAQ. Here's a story I wrote about that. At that time, Devcon's president Robert Farenhem told me the move had nothing to do with the underlying health of the business. From the story: Rather, he said, this move is necessitated by a breach of technical requirements to be listed on Nasdaq exchange, which he characterized as “harsh accounting requirements that security businesses suffer.” Devcon was notified in mid April that it was out of compliance with the Nasdaq requirement that it have a minimum of $10 million in shareholder equity. “Two and a half years ago we had $2.5 million in RMR,” Farenhem said, “and today we have $3.6 million in RMR … but over that period of time we have amortized about $40 million [for the purchase of Guardian International in 2007].” The Devcon statement yesterday said that Devcon "expects, but cannot guarantee, that its common stock will continue to be quoted on the Pink Sheets after it is deregistered." I'll be following up on this in the December issue.

Still thinking about that editorial I wrote

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Friday, October 10, 2008
I know all of you are desperate to hear more about the hate mail I've been getting regarding that (tepid) Obama endorsement (if only because you want to revel in the great names I'm being called and agree with every one of them). But I'm not going to post anything particularly salacious. Instead, I'm asking certain people with whom I think I've had interesting exchanges whether they'd agree to have them posted here. Henry L. Homrighaus, Jr. CHS-V, DABCHS, is the first one who said yes. So here goes. First up is his first email to me, then you can read down: On 10/2/08 11:17 PM, "Henry Homrighaus" wrote: As much as I like your publication I think that I have decided I can live without it as have many of my colleagues as we find your editorial biased and based on flawed assumptions. As a business owner and operator for many years I can attest to the failed policies of increased taxation diminishing the incentives for independent businesses to expand, hire and grow their enterprises. Your thinly veiled enthusiasm for Barack Obama is not in keeping with the best interest of the security industry. Henry L. Homrighaus, Jr. CHS-V, DABCHS ProSecCon, Inc. www.professionalsecurityconsulting.com --- From: Sam Pfeifle [mailto:spfeifle@securitysystemsnews.com] Sent: Friday, October 03, 2008 8:04 AM To: Henry Homrighaus Cc: tpurpura@securitysystemsnews.com Subject: Re: Editorial October 2008 Hi Henry, First: Is this a letter to the editor that you’d like published? Second: I am, of course, sorry to hear that you are so upset with the editorial that you’ve decided to discontinue your reading of the paper. I wrote what I wrote, and I stand behind it, but I would ask just two questions: 1. Editorials are, by their nature, biased. That’s what editorials are supposed to do, express an opinion. I think my opinion is well argued and reasoned, and the question mark in the headline indicates that it was a difficult decision for me. So, is it possible to support a candidate other than one you support and not be “biased?” If so, help me understand how. 2. Which assumptions are flawed? Third: I’ve disagreed with any number of editorials in many newspapers and magazines that I respect, but have never denied myself valuable information because of it. My mother used to call that cutting off your nose to spite your face. Fourth: It is very unlikely that I’ll vote for Barack Obama, just as an FYI. I have long been a supporter of a multi-party system, and will likely vote for an independent candidate when it comes down to it. I think our political system is woefully broken and that neither major party actually has the interests of working people and business owners at heart. Cheers, Sam --- On 10/10/08 10:09 AM, "Henry Homrighaus" wrote: Hey Sam, Thanks for the offer and I will send you a letter for consideration. As you know for many years I have always supported Security Systems News as the best security trade journal because most of the time you guys get it right and usually first will has been very valuable to me in both my security consulting and Expert witness practices. I thought it unusual for your magazine to offer this view in an editorial fully understanding your right to support or express your opinion. An honest review of the Bush presidency would reveal that his tax cuts spurred the economy into action resulting in record federal income which was on the road to eliminating the deficit until we, the American people, voted the democratic congress in charge 2006 and if you recall gasoline was $1.79 a gallon. The democrats and Barack Obama would hold our current economic woes as a direct result of the Bush administration which tried to reform Fanny Mae and Freddie Mac in 2004 followed by an attempt in 2005 by John McCain who detail the results of falling to reform these agencies and behold. I am against any and all bail outs as they tend to increase the time for the free markets system to respond and correct the problems. This bail out plan is failing miserably and is costing the American people dearly especially in their 401K’s and Ira’s. Barack Obama, Christopher Dodd, Chuck Schumer, Hilary Clinton and Barney Frank benefitted from the largess of these agencies in political contributions repeatedly denying that they was any problem and now want more control to “Heal” the problems. Barack Obama would be disastrous for the small independent business man with his tax policies, health care plan and the interference in family life by mandating what a family would be required to do to insure their children. Roughly 50% of the American tax constituency pays little or no taxes and his tax policy would further increase their returns in a blatant attempt to solicit votes at our expense. His behavior is only consistent with a socialistic theology and has no place in America. Since when has owning a home or health-care become a right or a responsibility of the federal government? Our failure to secure our borders and control immigration is responsible for over burdening our hospital and educational facilities. Forcing our financial institutions to make bad and liar loans has jeopardized our economy and now the income producing tax paying segments of our society are burdened with the problem which is patently unfair. The unintended consequence of our welfare system has resulted in generations of American families growing up without a father in the house destroying the time honored concept of family and resulting in an ever growing and never ending burden on society Barack Obama is a bad choice economically for American. I will vote for McCain but he was not my candidate which was Mitt Romney because of his proven executive ability. It comes down to this I don’t find Barack Obama credible or forthcoming because he won’t be candid about his relationships or associations but I don’t believe McCain will lie to me. I also see McCain as the underdog because I sense a certain bias in the media coverage to the detriment of journalism as the fourth estate. Your mother’s good sense prevails and I will continue to enjoy your publication and thanks for allowing me to vent. Thanks, Henry --- From: Sam Pfeifle [mailto:spfeifle@securitysystemsnews.com] Sent: Friday, October 10, 2008 9:30 AM To: Henry Homrighaus Subject: Re: Editorial October 2008 Thanks for your thoughtful response, Henry. Unfortunately, the November issue just shipped yesterday, so I won’t be able to get a letter into the paper before the election, but I’d like to post something on my blog, which is well read and in some ways better suited for a discussion of this sort. I could post this back and forth we’ve had directly, or I could post a response from you that would be similar to a letter to the editor. Let me know which you’d prefer, if at all. You and I agree on a number of points, and I think both parties share the blame for our current state of affairs. You talk about securing borders and dealing with immigration – that’s exactly why I’m so disappointed with our foreign policy and the war. I think we need to get our own house in order before we send hundreds of thousands of troops across the globe. You talk about the bailout being necessitated by bad loan policy – I’m very frustrated that this whole “ownership society” wasn’t lampooned when it was suggested. It’s very obvious that making loans available to people with no inclination or ability to pay them back is a very bad idea. Anyway, this email could get very long, but my essential point is that I’m glad to have you as a reader and I’m always interested in informed debate. I think it’s very important that these discussions are had so that people don’t just continue to always talk to the people they know agree with them. A good argument can do a great deal of good. Cheers, Sam --- Sent: Friday, October 10, 2008 11:30 AM Yes by all means post it on your blog and send me the link. I’m okay with the back and forth as I think it provides some stimulating dialog that deserves to be in today’s political discussion. Thanks, Henry

Essen, day 2

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Wednesday, October 8, 2008
People I met with (and/or poked around their booth) today: Primion. I knew literally nothing about these guys, who work in access, video and intrusion. Stopping by their booth, though, I was interested to see that they're taking the BACNET standard for building automation to Europe and finding success with it as a standard protocol. Smart company. Good design. Mobotix. Obviously, you've heard of Mobotix, but have you really looked at their product? By positing the camera as the central piece of the security system, with the "brains" of a DVR and needing only network attached storage, they create a fundamentally different architecture (VideoIQ does this as well, and there may be others I haven't been briefed on yet). And still they're open, and interface with a number of other cameras and software companies. Their numbers are pretty good, too. They report about $38 million in sales, with nearly $4 million in net margin. They publish a 19 percent EBITDA margin. HeiTel. Have you heard of this IP digital video company? I hadn't before I got here, but they have a stand (what they call a booth here) as big as my house. And the news they have for the Essen show is that they're coming to America. Basler. Yeah, they already came to America. Seriously, though, the company comes out of the machine vision space, and seems to have competitive IP cameras, and they're going to make sure you pay attention. Panasonic. You sure don't hear a lot of analog talk at Panasonic anymore. Where at ISC West the North American contingent put analog cameras in a ghetto (see definition 3b) off to one side, the Europeans here hardly mentioned the word "analog." They've unveiled new software and new training all geared toward bringing their legacy customers into the world of IP surveillance and reminding people they know how to make cameras and video systems. Did anyone think Panasonic would just drop their customers in a heap? Throw up their hands? And did you note that Panasonic threw their weight behind the PSIA (among a number of other companies, including Pelco, etc.)? Genetec. By all accounts, their biggest problem is how to staff their growth. Who knows what the starting point was, but 800% growth in five years is pretty solid, by my reckoning. They'll rattle off projects they've landed for hours, from airports in the Middle East to the entire Target chain. I'll try to draw some overall show conclusions on the flight back to the States tomorrow.

Essen, day 1, continued

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Tuesday, October 7, 2008
There's been a debate amongst the staff all day as to whether Essen is bigger than IFSEC. So I looked it up. IFSEC says 30,257 "professionals come together" this year. I'm guessing that means exhibitor attendees, plus regular attendees, plus various and sundry speakers, etc. But maybe not. Maybe that's just registered attendees. Security Essen says this: 1,027 exhibitors from 47 countries presented their products and services at the SECURITY Essen 2006. With some 40,000 trade visitors from 79 countries and an exhibition area extended to over 75,000 m², the world fair for security and fire protection recorded its best result so far in its successful history and clearly increased its lead as the world's No. 1 fair in this branch of industry. But I can't say that's really definitive, as there are some numbers open to interpretation there. Also, there's nothing that says Essen is as big this year as it was in 2006--other than my eyeballs, which seem to confirm it hasn't shrunk. But I won't judge by the first day of the show here, anyway, since it's a four-day show and I think tomorrow will be when the crowds matter.

Just sayin'

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Tuesday, October 7, 2008
For those of you who are angry about my recent (tepid) endorsement of Barack Obama: Check out how the end users are voting. According to the reasoning proposed by some recent emailers, the survey results indicate there are a lot of people in the industry in need of psychiatric help. Just pointing that out.

Essen, day 1

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Tuesday, October 7, 2008
I'll post a few times, tonight. First, check out my story on ONVIF's announcement and presence here. Inevitably, the PSIA put out a press release today as well. I respect everybody involved in both organizations, and I've written a number of times about the value of standards (though I'm not sure I've completely decided on a personal position on implementation and the finer points), and the technology is over my head, so this is what I'll say right now about these two standards efforts: They are a contrast in styles. One the one hand is the PSIA, which has got a little bit of a burr in its saddle and wants to move, move, move. On the other is the ONVIF, which is deliberate and dots all of its Ts (PSIA's pages of copy dedicated to membership discussion? 2. ONVIF's? 25). Both are populated by a lot of people who make it easy to agree with them.

Update from Amsterdam

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Sunday, October 5, 2008
On my way to the Essen show, I noticed this store front display at Versace, in Amsterdam: Gold-plated cameras all staring down the newest high-heeled boot? Who knew surveillance systems could be so hip? Now, if I could just discover who OEM'd those enclosures for Versace...

That editorial I wrote

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Friday, October 3, 2008
Okay, so the feedback is starting to come in regarding my editorial in the October paper. In it, I sort of tepidly endorse Barack Obama. You can read the editorial for my reasoning, so I won't go into it here, but the central gist of it is that while his tax policies are likely to be worse for business owners than John McCain's, I think Obama's long-run vision for energy is a game-changer. I think energy is the single most important issue of our time, and I find McCain/Palin to be covering their eyes and pretending the problem isn't there. They'd be the sort of captains who advocate more bailing (or maybe drilling) as everyone else is jumping on the life rafts. If you disagree with me, I'm okay with that. And we've gotten both positive and negative feedback that's created some cool dialogues. What I won't tolerate, however, are the cowards who've called our offices, refusing to identify themselves, and yelled into the phone that they're canceling their subscription, blah, blah, and then hung up. What purpose does that serve? I'm sorry if you've come to expect so little from your industry publications that an editorial made you angry and you didn't know what to do about it, so you lashed out in the only pathetic power grab you could think of. But, you know what, I disagree with editorials, on issues big and small, in all kinds of papers I respect (the Wall Street Journal and New York Times, among them), and I rarely spite myself by denying myself their content in the future. I love to hear people disagreeing with me. Arguing is one of my favorite past-times. And maybe I do stir the pot on purpose sometimes. But I won't engage with people throwing around ad hominem attacks and setting up strawmen to knock down. So, fire away, but keep your discourse civil and intelligent. And please acknowledge that people can hold opinions opposite to yours without being "ignorant" or "biased." Because that's what opinions are: biases.

Off to Essen

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Friday, October 3, 2008
Hey all, I'll be in transit to Essen for the next couple of days, so I won't be around to moderate comments much. Still, if you comment, I'll get to them as fast as I can. If you'll be at the show, drop me a line via Twitter and we'll hook up.

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