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Surveillance provider restructures debt

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Monday, January 7, 2013

A surveillance/RFID manufacturer that specializes in the library vertical, as well as retail and industrial/manufacturing sectors, has restructured its debt. The company, Sentry Technology Corp. out of Ronkonkoma, N.Y., is one I haven't written about recently.

A number of years ago, we wrote about some internal restructuring it did and deals it had with ADT and Chubb--but we haven't written much since. I have call into company president and CEO Peter Murdoch to get an update.

Sentry's products are used "by libraries to secure inventory and improve operating efficiency, by retailers to deter theft and enhance productivity, and by industrial/institutional customers to protect assets and people."

The news, announced Jan. 4, is that Sentry Technology paid off a $2 million in unsecured debt plus $743,000 interest to Brookfield Technology Fund. With this payment, "with the exception of $75,000 owned to Brookfield all secured company debt ... is owned by company directors Robert Furst and Peter Murdoch."

 

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WSC wants your input: Women leaders in security

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Friday, January 4, 2013

Nominations are now open for the Women’s Security Council's 2013 Women of the Year Awards.

This is a great program that honors the top female professionals in the industry in a variety of categories.

In selecting winners, WSC is looking for women who have exhibited leadership in the industry and at their companies, and women who have given back to the business community by mentoring or supporting other women in the security market.

Nominate yourself or a colleague by clicking this link. and filling out the form.

The winners will be formally announced at WSC’s 2013 Awards Reception at ISC West, profiled in the special April eWSC awards newsletter and announced in an official WSC press release to be distributed at ISC West.

All nominees, SIA members and WSC supporters are invited to attend the Awards Reception.

At ISC West last year, WSC honored the following leaders:  Erica Wood, CSO, American Fire & Security; Patricia Schmitt, President and CEO, Aegis Protective Services; Carole Dougan, Vice President Strategic Accounts, Arecont Vision; Debby Maffei, National Account Manager, ScanSource Security; Michele Freadman, Deputy Director of Aviation Security Operations, Boston Logan International Airport; Amy Kothari, President and CEO, Alarm Capital Alliance; and Renee Mallonee, Dealer Marketing Manager, Monitronics International.
 

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Couple loses $’s, electronics, ‘peace of mind’ relying on self-monitored security system

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Wednesday, January 2, 2013

A story about a home robbery over the holidays reported by a North Carolina news outlet on New Year’s Day caught my eye. That’s because it illustrates the potential costly drawbacks of relying on a self-monitored security system.

A Raleigh, N.C. couple lost $1,500 in cash and electronics and also their “peace of mind” after three thieves invaded their home while they were away for the holidays, according to WRAL.com. The report excitedly touts that the couple has video of the burglary, which they have posted on YouTube in hopes of catching the thieves.  But I can’t help thinking that if they had a security system that was professionally monitored 24/7 by a central station, the thieves could already have been caught and they wouldn’t have suffered the loss of their valuables and the terrible feeling of having their home violated.

Here are some more details from the WRAL.com report:
 

Matt Robinson installed eight cameras in different places around his home as a way to keep an eye on his dog.
The cameras can be accessed online or by using a smartphone, but Robinson said he and his wife had trouble pulling them up Saturday night while they were out of town for the holidays.
A relative went to their home to check things out and found the house had been burglarized.
"Three kicks is all it took" to break through the back door, Robinson said Tuesday.
He retrieved the video that recorded the burglary. It shows the three thieves casually walking around the house for nearly 15 minutes looking for valuables. One of them even used a knife to open a box.
"Imagine seeing your own house and people that should not be there going through your stuff. It is not a good feeling," Robinson said.
One of the thieves eventually noticed the video cameras and is seen in the video cutting the cables to at least one of them. Bleach also was poured over a box that records the video from the cameras, but it wasn't enough to erase the images of the burglary.
Robinson put the video on YouTube and has passed out fliers in his neighborhood, asking anyone who recognizes the people on the tape to call police.
The thieves stole about $1,500 in cash and electronics, he said, but they also took something on which he cannot put a dollar figure.
"It's very violating, unsettling, and you lose your peace of mind," he said. "That is hard to get back."
 

The burglary is also making national news on sites like The Huffington Post.

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Where can you learn more about BYOD?

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Wednesday, January 2, 2013

Happy 2013! I’m back in the office after an extra long vacation, which involved no work and a lot of food, exercise and fun with my kiddos, husband and extended family. I hope you all had some time off as well.

Going through emails and pre-holiday to-dos, I came across some notes from the Imperial Capital Security Investor Conference from a panel discussion that took place at the very end of the conference about BYOD—that’s bring your own device. The panel featured government professionals talking about how they deal with the proliferation of mobile devices, where they’re useful and where they’re exceedingly dangerous.

One speaker said BYOD should stand for “Bring your own disaster.”

They discussed whether you secure at the device level or the app level? (The consensus was app.)

Another speaker said the only reasonable policy is “HYOD” which stands for employers saying, “here’s your own device.”

I’m looking forward to further discussions on this topic at TechSec 2013 (Feb. 5-6 in Fort Lauderdale, Fla.) One TechSec educational session, “To BYOD or not to BYOD,” will address this topic specifically.

Moderated by Brivo’s Charles Wheeler and featuring cybersecurity specialists, this session will examine the effect on the physical security industry, what should be included in a BYOD policy, how can BYOD comply with data protection and privacy requirements and particularly how it relates to security systems integrators and end users.

One more reason for you to come to TechSec 2013. Check out the program at http://www.techsecsol.com.

New year, new urgency on AT&T's 2G sunset

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Wednesday, January 2, 2013

One of the most newsworthy items for the alarm industry in 2012 was AT&T’s announcement that it will shut down 2G service by Jan. 1, 2017. Everyone knew the day was coming, but there had been a lot of speculation in the field about exactly when cellular equipment would need to be upgraded to stay ahead of the sunset.

With the uncertainty gone, the industry now faces the reality of swapping millions of devices that use AT&T’s GSM/GPRS network. Choices must be made that involve assessing the longevity, coverage and cost of competing technologies. The larger the company, the larger the stakes.

SSN covered developments on the 2G sunset throughout 2012, presenting opinions from industry experts and a few rebuttals about the best path for dealers to take. For those still unsure about which way to go, a summation of options is provided by Syed Zaeem Hosain, chief technical officer at Aeris Communications, in the latest issue of CSAA Dispatch. Here’s what he had to say:

Change service to T-Mobile. It may be possible to move service from AT&T to T-Mobile by swapping the SIM [card] inside devices. This requires a truck roll. Furthermore, T-Mobile will also remove 2G eventually. Thus, this option only delays the inevitable by about two years; however, it allows additional time for implementing other options. It could require two truck rolls: one to replace the SIM soon, and another to replace the 2G GSM device later.
 

Replace with 3G HSPA. Alarm device suppliers are making new 3G HSPA devices. However, the HSPA coverage is much smaller than GPRS and, in time, HSPA spectrum also will need to be swapped for LTE. Thus, there is likely to be an “HSPA sunset” starting in about seven to eight years. This sunset would be worse, since the number of deployed alarm units will be much higher.

Replace with 2G CDMA. Alarm device suppliers have not yet supported this option, though it is likely the best. CDMA carriers have committed to 10-plus years of service longevity, and the 1xRTT coverage is better than GSM. Given the lower cost of 1xRTT radios and the large number of deployed 1xRTT applications in other industries (notably automotive and trucking) supporting the technology, using 1xRTT for alarm units makes sense.

Replace with 4G LTE. Deploying LTE devices is not viable for the alarm industry today. Radio costs are very high, and coverage is simply not sufficient for national deployments. Both will improve in time, but not at a pace that makes it a viable replacement option today. Carriers have not yet worked out LTE roaming agreements—these also will take time. Most importantly, the spectrum fragmentation for LTE means that current-generation LTE radios are single band (dedicated for use on a single carrier when in LTE mode). This is too restrictive, since these units can never be moved from one carrier to another.

Whichever route is chosen, it should be noted that the four-year window is a best-case scenario. Frequency harvesting is expected to dilute AT&T’s 2G coverage well before the sunset, with constraints already being reported in some areas. While the best choice for dealers seems to vary depending on who—or which manufacturer—you talk to, one thing is clear: Procrastination is no longer an option.

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Stepping up school security after Newtown

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Wednesday, December 19, 2012

The outrage and debate in the wake of the Newtown massacre will inevitably bring change. It might not involve the federal action that many have demanded—a ban on assault weapons tops the list—but it is certain to include local initiatives that strengthen school security: improved access control, additional guard services, expanded video surveillance or a combination of the three.

Unfortunately, school shootings are a problem that security alone can’t address, involving complex issues that go well beyond simply installing metal detectors or better entry controls. A determined, well-armed assailant will still be able to kill despite the best intentions of public officials—that was proven in Newtown. Progress can be made to limit the scope of such tragedies, but to think we can eliminate them is naïve.

That being said, and with the horror of the Connecticut shootings still painfully fresh, it might come as a surprise to learn that the number of school homicides in the United States has dropped since the early 1990s. According to the National Center for Education Statistics, there were two years during that decade—1992 and 1997—when the school homicide toll among students ages 5-18 rose to 34. By 2010, that number had fallen to 17. The decline hasn’t been constant and one slain student is one too many, but it’s a decline nonetheless.

For many schools, the tipping point for action was the Columbine High massacre in 1999, which led to the widespread adoption of lockdown procedures and other safety protocols. That sense of urgency has faded, however, according to school security consultant Kenneth Trump, who told The Washington Post this week that “the conversation and the training that we have today [are] not at the same level of consistency and intensity.”

Physical security assets at the nation’s schools also have lagged. Michael Dorn, executive director of the nonprofit group Safe Havens International, told the Post that fewer than 10 percent of U.S. schools have strong access control with locked entryways, buzzers, protective glass and camera or intercom systems. That’s likely to change after Newtown, he said, as school districts feel pressure to upgrade security.

“There’s a shift from concern to panic, if you will, and you have parents doing something to improve safety,” Dorn said.

That presents an opportunity for security companies not only to benefit financially—the unspoken result whenever such tragedies occur—but also to strengthen the protection of children across the nation. Regardless of what happens at the federal level, local school districts are sure to come knocking.

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Schools need to be armed … with mass notification!

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Wednesday, December 19, 2012

Shock. Grief. Outrage. Those are some of the feelings we’ve all experienced in the aftermath of the massacre of 20 children and six adults at Sandy Hook Elementary School in Newtown, Conn. Now I’d like to add “frustration” to the list.

That’s an emotion expressed by some fire installers who say they’re frustrated that school officials don’t realize how valuable an emergency communications system/mass notification system can be in situation like the one at Sandy Hook, where a young man gained entrance to the school and shot the students and staff. Adding a mass notification component to a fire system, particularly if the system already has speakers, typically is a pretty simple job. Yet many school officials are unaware such an important option exists, fire installers say.

Among those expressing frustration is Carter Rierson, president of Best Defense Security & Fire Protection, based in Waunakee, Wis. Here’s his very articulate summary of the situation:
 

Over the summer we installed several school fire alarm systems along with dozens of card readers and cameras for schools.  No schools, however, installed an emergency communications system here in Wisconsin.

Emergency Communications Systems … are the best tool to minimize the impact of what we saw last week.  Rather than luckily having heroically push an intercom to alert the building, ECS systems are designed to do EXACTLY that.  The industry as a whole is just beginning to learn about these systems. Unfortunately, the school administrators, and the engineers who design fire alarm systems for them, have no idea what these systems are, how they work, and how they should be implemented in buildings such as this.

Much has been written about the “first responders”, the police officers, EMT’s, etc. In reality they were NOT the first responders. The first responders were the heroic teachers and staff members who ALWAYS respond first in a case like this. Unlike the other “first responders” who are fully equipped, very little has been done to equip the true first responders for a situation like this. ECS is the first step as it decreases the amount of time required to notify the staff and students, compartmentalizes the buildings, and automates the dispatch of the “first responders”.

The word needs to get out.

 

I’ll be talking more to Carter and other fire companies about what the industry can do to make sure the word does get out about ECS/MNS! Stay posted.

 

Devcon's past mistakes, future promise at Imperial Capital's SIC

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Wednesday, December 19, 2012

It was a very full day at the Imperial Capital Security Investor Conference on December 13. Starting before 8 a.m. with John Mack’s “State of Security Finance/M&A Markets” and wrapping up at 5:30 with a very cool panel discussion on BYOD—a great discussion topic, which should be a cause for concern for integrators, manufacturers, and end users alike. We’ll have more on this topic at TechSec in Florida, Feb. 5&6, 2013. Check out this link.  

During the course of the day I heard some cybersecurity experts prognosticating about some frightening stuff and also  listened to presentations from 13 companies (there were 60 presenting throughout the day.) The sessions I saw ranging from systems integrators like Dakota Security to manufacturers like alarm.com and interesting start-ups like Quylar and Applied DNA Sciences.

The format is efficient. Session are 20 minutes and because the presentations are designed for investors, they are refreshingly free of long diatribes about how much more maniacly obsessed XYZ company is with customer service than ABC company.

Early in the day, at the Devcon presentation, Devcon’s chairman of the board, Christopher Munday, spoke frankly about the company’s challenges in the past couple of years—including an ill-fated branch expansion.

He confirmed that the company is actively seeking a buyer and has hired Imperial Capital to "review strategic alternatives." Munday shared several operating and financial metrics to support his assertion that the company is on strong footing.

In 2010 and 2011, Devcon hired many former Brink’s Home Security dealers and quickly opened up 50 branch offices around the country.

That move was a mistake, Munday said. “In 2010 and 2011 we tried to fast-track the company. That did not work,” he said.

Today, Devcon has gone back to its “core business.” Munday said it has spent the past eight months realigning costs and reassessing its regional structure.

Based in Hollywood, Fla., the company now has 11 branches, eight of which are in Florida. It has 136,000 customer sites, 547 employees and $4.3 million in RMR.

While Devcon and Utah-based Pinnacle Security are both owned by Golden Gate Capital, the two are “separate companies with separate debt facilities,” he said.

Devcon’s business mix is 46 percent residential, 35 percent commercial and 19 percent homeowner associations. Its attrition rate varies by division, but is 11 percent across the business.

While Pinnacle does door-to-door sales, Devcon’s residential sales require an average of “1.7 to 2.3 visits—it’s a slower, controlled sale,” Munday said. Those residential accounts typically have a $200 to $225 upfront investment from the customer.

Devcon has two central stations, one in Staten Island, N.Y., and one in Hollywood, Fla. While its branch offices do some commercial work, the bulk of its commercial business comes from two New York City-based businesses: Mutual Central Alarm Services, which does large commercial deals and has many high-end retail customers, and Stat-Land, which services mostly commercial customers in and around Staten Island.

Recent changes have not affected Devcon consumers, Munday said.

The past few years have included investments in “enhanced business intelligence systems.” Those technology investments and software systems could “support tremendous growth nationwide, should [a new owner] choose to do that,” he said.

“After the uncertainty, there is positive momentum at Devcon,” Munday said.

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Diebold and Imperial Capital Conference

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Wednesday, December 12, 2012

I'm on my way to New York City, via Elmsford, N.Y. today. I'm heading to "upstate" New York for a visit to Diebold's NY office. When I interviewed Tony Byerly at ASIS, shortly after he took over as head of the security division at Diebold, he was telling me how impressed he was by Diebold in general and the NY operations center specifically.

So, I'll see it for myself this afternoon and will have a report tomorrow.

Later this afternoon I'll be heading into the city for the Imperial Capital investor conference. There's just a reception tonight; the action starts tomorrow. There are like 60 companies presenting 20-minute sessions to investors--or that's my understanding. I haven't been to this conference before. Sounds kind of like investor speed-dating.

New voices join alliance for video-verified alarms

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Wednesday, December 12, 2012

The Partnership for Priority Video Alarm Response has added four new voices to its campaign to increase arrests and reduce property losses through the use of video-verified alarms.

Joining the PPVAR’s board of directors are Jacqueline Grimm, vice president of security solutions for Diebold Inc.; Douglas Curtiss, president of Sonitrol New England; Jon Bolen, chief technology officer for Interface Security Systems; and Robert Baxter, president of Radius Security.

The new directors from the security industry will work with representatives from the National Sheriffs Association and the National Insurance Crime Bureau, an alliance of groups that would have seemed unlikely a few years ago.  

“We’re pleased to join PPVAR to promote priority response to video alarms that are verified by a certified central station,” Grimm said in a prepared statement from the partnership. “[Diebold has] offered alarm verification services for many years, and our focus on priority response, apprehension and risk reduction provides comprehensive threat protection. Also, by assisting law enforcement with a second-by-second situation analysis, we can help improve officer and customer safety while increasing criminal apprehension rates.”

Bolen, who was the chief product officer for Westec before it was recently acquired by Interface, is a 15-year veteran of video verification. He cited its benefits by breaking down the numbers.

“We have reduced and maintained our dispatch rate to less than 3 percent of events handled by our operators, meaning that over 97 percent of the alarms we receive are resolved without the costly, and often needless, intervention of authorities,” he said in the PPVAR statement. “We are pleased to join an organization promoting this kind of value.”

Curtiss of Sonitrol, which has a history working with police to make arrests through audio verification, echoed Bolen’s sentiments.

“Whether it is audio or video, the operator is a witness to a crime in progress,” he said. “From my perspective, the ‘V’ in PPVAR is ‘verification.’ We support his organization and its work to reduce false alarms and make more arrests.”

Canada gets a nod in the PPVAR with the addition of Baxter. He is president of Radius Security, a Greater Vancouver video monitoring central station.

“Alarm response in many cities in Canada has been degrading as budgets and police resources decline,” he said. “Video-verified alarms help us provide greater security for our customers and reduce false alarms for our law enforcement partners.”

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