Beyond the Bottom Line : October 2021
A Hanwha Techwin Communication
– October 2021 –
Hello HTA team,
I’d like to start with our positive financial momentum: HTA has grown 32% through Q3 with $209M in sales, and I predict we are likely to close the year with $300M or more in revenue. Let’s keep up the efforts to end the year strong.
While it seems the unprecedented global supply chain disruptions were initially estimated to be temporary, unfortunately they will likely continue into 2022 as the COVID pandemic and variants are still impacting factory production in Vietnam and our shipping capabilities. At the same time, we are experiencing ongoing issues with container allocations, vessel bookings and port congestion.
In the face of these challenges, HQ is fully supporting HTA by allocating most of their available resources and components. On average, 60% of total factory capacity is used for shipments to HTA getting 120K units per month. We spent $2.5M in Q3 on air shipments to minimize our $40M+ backorders and to meet the majority of project delivery schedules and deadlines.
We will continue to closely monitor this situation, and by working together will get through this with as minimal disruptions to our operations as possible. As always, I appreciate your understanding, commitment and dedication to our business.
Finally, if you haven’t seen the popular new Netflix series “Squid Game,” be sure to check out the second episode where Hanwha corporate headquarters makes a cameo appearance! With a global audience of 82M viewers, this unpaid placement opportunity – in a Korean-produced series no less—is great visibility for our brand and will help introduce Hanwha to new audiences.
Mr. C.H. Ha, President, Hanwha Techwin America
Food for Thought (and Revenue)
Thanks to the efforts of Mike Moore, Senior Regional Sales Manager, ConAgra Foods recently converted to Wisenet WAVE and our Wisenet 7 solution along with select entry points on AI standards. Working closely with Electric Company of Omaha (ECOO), Mike and the team listened to the customer and to the feedback of our product managers, allowing them to adapt and configure the right global solution for ConAgra Foods.
Our sales cycle on this project was a little more than 15 months, with much of that time requiring the team to go above and beyond typical sales functions. With COVID travel restrictions limiting on-site visits, Mike set up a test area in his garage, producing demo videos for ECOO to share with ConAgra executives. This extra effort was key to winning their trust.
This is a total Hanwha solution from server to software to camera. ConAgra appreciated having “one throat to choke” with none of the finger pointing they’ve had in the past with other providers.
Since the ConAgra project started in July, Mike and ECOO have worked together to complete the design of 3 sites totaling approximately 235k in cost of goods (COG) for the month of July alone. In all, the MSRP project total is approaching $11,000,000 with a COG around 3.7 millionth start as budgetary numbers. We are continually adding additional solutions to this project like the new XNF-9010RS and XNP-9300RW with each site needing four and one units respectively, and we can easily achieve a $5 to 6 million in sales over the next 2 years.
Congratulations to Mike and the team for an outstanding effort.
Senior Regional Sales Manager, Hanwha Techwin
Area Sales Manager, Hanwha Techwin
Taking it to the bank
Winning a project over a key competitor is always gratifying, and when the win has long-term potential it’s even more rewarding.
Noel Gonyeau led a project team that developed a deep relationship with Huntington National Bank (HNB, formerly Twin City Federal Savings and Loan Association), consistently demonstrating the superiority of Hanwha Techwin solutions. Axis had been the incumbent at TCF since 2016, and when Huntington Bank took control of the technology, they required Axis be changed out for Hanwha.
The $1.2M project (with potential for ongoing revenue) covers a range of HTA technologies: XND-6080RV (2500), XNF-8010R (400), QNV-6082R (400) and QND-6082R (400). Key features that won over HNB included seamless integration to Verint solutions, low-light performance, image quality, modular camera design, low failure rate and WDR.
This opportunity with HNB has been ongoing for hard spec since April 2019. After Twin Cities Federal was acquired, the Huntington hard spec was made the technology standard for all TCF projects moving forward.
Outstanding job by Noel and the team, including the RSM, FAE, PM, NSI and our manufacturer rep.
Partnering for the win
Successful partnerships are the key to success in our industry, as Matt Mendler has demonstrated over the years.
While our customers love Hanwha Techwin cameras, recorders and WAVE VMS technologies, often what determines a win is their integration with partner software and hardware to create a full solution.
Matt has consistently worked with HQ and our ecosystem of partners, especially our two top VMS partners Genetec and Milestone who each contribute equally to Wisenet WAVE VMS large-project revenue opportunities. Matt has supported other significant HTA partners like Salient, as they updated their software in a recent push to integrate dozens of models spanning our Wisenet L series, Q series, X series and P series cameras, as well as our HRX recorders. Matt has also spearheaded similar successes on integrations with Exacq, Open Eye, Avigilon and many others.
Additionally, as access control partner integrations for our Wisenet WAVE VMS become more important to our customers, Matt has supported integrations ever since he joined HTA, such as the addition of Open Options, FEENIX, PROdatakey, PDCidenticard, ICT and Keri. He also has multiple exciting new access control partner integrations in progress, including Gallagher, DMP, Lenel and others. There is also increasing interest in integrations for alarm monitoring platforms such as IMMIX, which is now complete, and others that were recently reactivated, such as iVIEW and SUREVIEW.
Many thanks to Matt for facilitating the development of these integrations, and for supporting our partners in every way.
Partner Relation and Integration Manager, Hanwha Techwin
Our New Demo Policy
Hands-on experience is the best way for customers to see what HTA products can do, and our new demo policy makes that process easier and faster than ever. Thanks to the efforts of Kate Kim and the IS team, our sales teams can request and ship demo sample units with only one approval needed. The demo system is also set up for real-time budget management and inventory checks and will be continually updated with the newest products. Congratulations Kate and the IS team for contributing to make a key element of our company’s success streamlined and more accurate.
Raising Our GSX-pectations
Coordinating one of the Industry’s biggest trade shows is never an easy task, especially when it’s the first in-person exhibit after a long hiatus. The HTA marketing team pulled it off, through the combined efforts of Andrew Hsu, Aaron Saks, Greg Hadley, George Harak and our new trade show and events manager Martha Bazan. The team took control of the entire GSX 2021 event, from the shipping and assembly of our booth to product demos and displays to on-site staffing and booth graphics. Thanks in large part to the team’s efforts, the GSX show was a total success for Hanwha Techwin.
Even though overall attendance was down, we held several positive meetings with key customers and generated new sales leads for HTA. We increased our brand visibility with an eye-catching sponsorship banner over the convention center main entrance (see image attached). Our key product/solution demonstrations – AI, Wisenet Road AI LRP, Audio/Video intercom products, Wisenet SKY, and the P and X series line expansion – made Hanwha Techwin the must-see booth at the show.
A huge thank you to the marketing team for HTA’s standout presence at GSX. We look forward to seeing what they can achieve in Atlanta next year.
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An Events Calendar High(light)
Join Hanwha Techwin at the annual MJBizCon, the Marijuana Business Conference and Cannabis Expo on Oct. 19 to 22, 2021. Hanwha Techwin will showcase cameras, recorders and storage technologies to help industry professionals protect high-demand products, secure their cash-intensive operations and scale easily for rapid growth. Learn more at https://mjbizconference.com.
ISC East is On
The next show on our calendar is the International Security Conference & Exposition (ISC East), planned for Nov. 17-18, 2021 at New York City’s Javits Center. Hanwha Techwin is a long-time supporter of this show and its west coast counterpart, as both are marquee events in our industry. We’re looking forward to gathering with colleagues, customers and partners, and highlighting our full line of surveillance solutions. Learn more at https://isceast.com.