Data from IMS Research shows how the trend to network video surveillance is shaking-up the CCTV industry. Network cameras and video servers are the highest growth sectors of the CCTV market. IMS says that many of the established suppliers were slow to market with network video products. This has enabled a new wave of network video specialists to gain an early lead in this fast paced sector of the market. The market for networked video surveillance (IP surveillance) in Europe is currently experiencing explosive growth. IMS Research predicts factory revenues for network cameras will grow at 28.4% (CAGR) over the next five years, with even faster growth of 30.3% forecast for video camera servers. Together these markets will be worth some EUR151.1 million by 2008, says IMS. Senior analyst Simon Harris commented “both the network camera and video camera server markets in Europe are currently dominated by companies who specialise in digital video networking solutions. Axis is the dominant supplier of network cameras in Europe, with an estimated 59.8% market share in 2002. It had more than four times the market share of its nearest competitor, Mobotix. Axis is also the clear leader for video camera servers with an estimated market share of 35.4%, well ahead of its nearest competitors VCS and Visiowave. In both cases the traditional big name suppliers associated with CCTV were nowhere to be seen.” However, many of the majors from the analogue CCTV world are ramping up their activities in the network video market. For example, Baxall, JVC, Samsung, Sanyo and Sony, to name a few, are now aggressively promoting lines of network cameras. In addition, a number of Asian manufacturers, such as Pixord and Webgate, are vying for a share of the European market. As competition hots up, it remains to be seen whether the pioneers in the network video field can retain their early lead.

By installing the all-digital system developed by Israel-based NICE Systems, the Bally’s casino surveillance team will replace all analog video tape recorders with compact digital recorders that use computer hard drives, enabling the company to more efficiently store and retrieve critical casino surveillance video. The system is expected to be fully deployed by the end of 2005. “Digitizing our gaming surveillance to match the digital surveillance we currently use in security operations will enable us to work more effectively as a department,” said Caesars Entertainment Vice President of Corporate Compliance and Security James Darcy. “This system will provide us with instant access to surveillance video at the touch of a finger, instead of requiring us to sort through stacks of analog tapes, as we have for so many years.” Darcy said the company will look to expand the use of digital surveillance systems at other Caesars Entertainment casino resorts, pending further regulatory approval. NICE Systems designed the Bally’s application using both the current NiceVision Harmony and the new, high-end NiceVision Pro digital video recording solutions. Currently, Bally’s is utilizing NiceVision Harmony for its general security application. The addition of NiceVision Pro will provide more functions and a faster frame-rate, specifically designed for gaming surveillance. This space-saving transition from analog to the NiceVision solution will allow Bally’s to maintain monitoring operations for its entire facility from one location, reducing overhead, manpower and maintenance costs. “We are, of course, very pleased that Bally’s chose the NiceVision solution,” said Ian Ehrenberg, NiceVision vice president and general manager. “Even more exciting is the breakthrough regulatory approval, specifically naming NiceVision products for gaming surveillance.” Installation of the all-digital surveillance system was approved recently by the New Jersey Casino Control Commission, upon the recommendation of the New Jersey Division of Gaming Enforcement. Prior to approval, Bally’s and NICE successfully completed a two-year trial of the new digital gaming surveillance systems. This is the first time that a casino in New Jersey has received approval to use a digital video recording solution for gaming surveillance. Until now, digital solutions have been restricted to security only.

Net income for the quarter ended December 31, 2004 decreased to $US3,895 or $US0.00 per share, from net earnings of $US169,043, or $US0.01 per share, in the comparable quarter ended December 31, 2003. “Extreme continues to expand on its leadership position in active-infrared optics technology. Our strategic customer base continues to grow, and our product line is becoming more comprehensive and advanced, addressing current and future needs of an intelligent-security world. “We have continued with our strategy to increase our investment in R&D to enhance our position as the world’s leading active infrared technology company,” stated Jack Gin, President and CEO of Extreme CCTV. Gross margin increased to 50% in the quarter from 48% last year. The full impact of Extreme’s price increases, initiated during the third quarter ended June 30, 2004, has taken effect. Furthermore, strategic cost reduction initiatives on some of the Company’s product lines and increased sales of the higher margin REG(R) product lines have positively impacted gross margins. Comparative figures for the quarter ended December 31, 2003 have been restated to take into effect the retroactive treatment of stock based compensation expense, as recommended by the Canadian Institute of Chartered Accountants. Sales and marketing, and general and administrative expenses have been affected by the restatement, as well as retained earnings and contributed surplus. Unit sales across most of Extreme’s product categories increased during the quarter. The REG(R) product group, a high value line, showed strong growth in the quarter with unit sales up significantly. Revenue for the UK geographic segment for the quarter was $US 2.6 million, as compared to $US2.3 million last year, as a result of success in the European markets and, in particular, the expansion of the REG(R) camera product group for license plate reading. Overall unit sales in the United States were consistent year over year, and sales in Canada increased. “We are encouraged with the sale of the first units of our Reg-ALERT(TM) software product and further expansion of the product line,” said Mr. Gin. “We are experiencing strong interest in the Reg-ALERT(TM) License Plate Capture system, particularly in the United States market.”

REG cameras combine the latest in opto-electronic CCD technology with active-infrared imaging technology to capture plates traveling at 60 mph (100 kph) at high resolution, producing 30 frames/second while shuttering at speeds as high as 1/1500 second. “We believe the REG license plate reading (LPR) camera is industry’s finest LPR camera, and it fits well with Extreme’s growing portfolio of unique high-specification surveillance technology products,” says Jack Gin, President and CEO of Extreme CCTV. The success of the REG program has warranted the development of additional product models. Extreme CCTV will be releasing three additional REG models in 2005 to meet demands for specific performance, portability and mobile versatility. In the United States, REG has been credited with helping authorities identify two individuals of interest on a Homeland Security terrorist watch list. REG has experienced strong interest from systems integrators in Europe and North America. In Europe, most REG cameras are applied to software-based Automatic Number Plate Reading (ANPR) systems, while in North America, most REG cameras are connected to Digital Video Recorders (DVRs). The compatibility to both DVR and ANPR systems have contributed to the popularity of REG for security usage around the world.

Nikon and Identix worked in partnership to develop Face-priority AF (Autofocus), a photography feature that uses the latest digital face finding technology from Identix to automatically detect human faces in the scene, and to automatically adjust camera settings – such as focus and gain – to produce optimal images of the faces irrespective of background, lighting or other viewing conditions. The Face-priority AF feature will initially be available with Nikon’s COOLPIX 7900, COOLPIX 7600 and COOLPIX 5900 models. The licensing agreement between Identix and Nikon covers production for the entire COOLPIX camera line, which is expected by Nikon to be in the multimillions of camera units. According to Identix President & CEO Dr. Joseph J. Atick, this license by Identix to Nikon represents the largest deployment to-date of FaceIt technology in a commercial application. The face finding technology works in real time and it is able to control the auto-focus even if the person moves or the photographer recomposes the picture. The feature works effectively for both horizontal and vertical positions or even if the camera is tilted. The end result is a smarter camera eliminating the need for the user to manually adjust the settings, making the camera more user-friendly, more fun and easier to use. Identix FaceIt technology has numerous capabilities that can be integrated into a wide range of applications. The face finding capability of FaceIt is especially important since it serve as the initial step for a number of applications, including enrollment and matching. Face finding provides integrators with the highly accurate and hands off ability to locate faces in the field of view regardless of background, or lighting or viewing conditions, a benefit that has been embraced here by Nikon to deliver a unique new offering to the consumer market.

NAPCO’s net income was up 20 percent for its second quarter that ended Dec. 31 to $US872 million and has been up more than 211 percent over the past six months. “Our business strategy of reallocating our burglar and fire alarm sales across our extensive national network of independent distributors has been well received and the revitalization of that segment of our business has taken hold,” said NAPCO Chairman and President Richard Soloway. “Our independent distributor network has done an outstanding job of reaching out to an expanding list of security dealers who focus on residential, commercial, industrial and governmental security installations, resulting in increased acceptance and sales of NAPCO alarm products.” NAPCO nearly halved its debt in its second quarter to $US4.4 million.

The dividend is payable March 10, 2005, to shareowners of record at the close of business on February 18. “UTC’s exceptionally strong cash flow has allowed us to increase the dividend 80 percent since 2002,” said Chairman and Chief Executive Officer George David. “The board’s action today also affirms our confidence in sustained earnings growth and cash flow performance.” UTC has paid cash dividends on its common stock for 69 consecutive years dating to December 1936. Based in Hartford, Conn., UTC is a diversified company that provides high technology products and services to the aerospace and commercial building industries worldwide.

“That’s the basic picture in Australia at the moment – we’re getting more violent,” Dr Tim Prenzler, head of the School of Criminology and Criminal Justice at Griffith University told SMH. “It’s not a pretty picture.” There were 145,420 violent crimes in 1996. By 2002, the figure had grown to 198,722 – and 80 per cent were assaults. In the UN survey about 30 per cent of those surveyed told researchers they had been victimised one or more times in 1999, compared with 26 per cent in England and Wales, 21 per cent in the US and 15 per cent in Japan. Meanwhile England and Wales had the highest incidence of overall crime, the survey showed.

The worldwide cellular handset market continues to grow at breakneck speed with Worldwide shipments forecast to be around 650 million shipments by year’s end, up from 500 million at the end of 2003. As the market matures an increasing number of handsets are being equipped with advanced features that take advantage of the next generation technologies. The market is seeing the rise of the smartphone terminal in earnest. This technology will make video monitoring of remote locations from handsets a reality. Based on a recently published report, The Worldwide Cellular Terminal Market, 6th Edition, IMS Research is forecasting that the growth in smartphones will begin to accelerate in 2005, and that by 2009, the market will represent 175 million smartphones per annum. This represents 22% of all handsets up from 4% in 2004. Report author, Carlos Guzmán, stated “With the long awaited commercial launch of 3G networks finally being realised in 2004 in a number of key markets and an increasing number of 3G handsets to choose from, smartphones are poised to garner an increasing share of the market. “We predict that data enabled terminals will continue to grow as cameras, MP3s and other applications are incorporated into these handsets.” The report identifies the growing segmentation of the handset market by grade and applications. Guzmán added, “the cellular industry is moving to a niche market where handsets will focus on a couple of applications instead of offering a handset that can do all the applications. We expect the market in 2005 to offer an increasing selection of handsets introduced as handset manufacturers are increase their focus on individual segments of the market.”