In this issue:

Pinnacle on the Chopping Block 

Pinnacle Security, Orem, Utah, has been in the news lately with several sales of various assets. Signs point to the dissolution of this company. And with rumors that parent company Golden Gate Capital is looking for a buyer for Devcon Security, this could mean Golden Gate is bowing out of the security industry. A spokesperson for Golden Gate Capital declined to comment.

Back in October, 2012, Monitronics, Dallas, announced an initial purchase of 93,000 accounts from Pinnacle that would begin an ongoing partnership. Pinnacle would function as the sales generating partner and Monitronics would take over those accounts. That initial account acquisition added $4.4 million of gross recurring monthly revenue for Monitronics, with a price tag of $131 million. According to Monitronics, those accounts had approximately 75 percent penetration of interactive services.

At that time, Jared Chappell, president and founder of Pinnacle Security, said, “With this relationship, Pinnacle is increasing its operating flexibility and significantly lowering its debt load. At a time when competitors are taking on additional risk and increasing their debt, this improved capital position represents the best direction for Pinnacle and allows the company to pursue significant new growth opportunities.”

However, in January, 2013, Protection 1, Chicago, announced it had acquired proprietary IT infrastructure and software from Pinnacle Security as well as its Orem, Utah facility and personnel.

“Pinnacle has invested a significant amount of time and money in their customer relationship management system; in fact, it earned the 2012 Best Practice Award at the Electronic Security Integrators (ESI) Forum for its Dashboard and MySales Websites,” Tim Whall, chief executive officer of Protection 1 told SDM. “The CRM system provides real-time data to sales and installation information, as well as provides prospect and customer information to representatives in the field on their mobile devices, iPads, and laptops.”

Whall added that this system will help Protection 1 gain market share in its current markets. Jared Chappell and Steve Zolman will be joining the Protection 1 management team and leading a new residential division at Protection 1 which will focus on personalized, one-to-one selling of home security products and services.

“The additional sales channel will primarily be focused on door-to-door selling,” Whall explained. In response to the bad reputation some companies have gained by using a summer sales model, he added, “I think it’s important to note that there is a misconception that the ‘summer sales’ model is simply a ‘bunch of college kids hitting the streets.’ In getting to know the teams out in Utah and their business model, we see the majority of people involved in selling and installing have made this their career, returning year after year post graduation and desiring to make this an opportunity for life.”

Finally, in February, 2013, SAFE Security, San Ramon, Calif., acquired 24,000 subscriber accounts from Pinnacle, representing $1.1 million of RMR.

“This is an exciting and important addition to SAFE’s portfolio,” stated Paul Sargenti, SAFE’s president and CEO who founded the company in 1988. “The transaction fits very nicely into our national footprint. The acquisition, in conjunction with SAFE’s robust dealer program, provides cash flow to optimize and execute SAFE’s growth strategy.”

For more on this story, continue reading at — By Sabrina Gasulla, Associate Editor



New Roles at Tyco

Tyco Integrated Security announced two leadership moves within the organization. Jay Hauhn now serves as vice president, Product Management and Industry Relations and Hank Monaco as vice president, Marketing.

In his new role, Hauhn is responsible for product technology and innovation along with industry and government relations. He leads product and service solution development and engineering as well as development and implementation of product strategy.

Monaco leads advertising, branding, communications, interactive marketing, strategy, business development and product marketing.



New Deregulation Bills in Michigan Could Spread Nationwide

Last year, the industry’s eyes took a second look at Michigan as new bills were introduced and backed by some new entrants to the industry — showing promise of spreading to other states. The bills were introduced on Sept. 19 and moved through the legislature at high speed. Despite the security alarm industry, law enforcement and Michigan’s Department of Licensing and Regulation speaking out against them, on Jan. 2, 2013, Senate Bills 1291 and 1292 were signed into state law as Public Acts PA 580 and PA 581. 

Effectively, PA 580 and PA 581 weaken the current regulation of security alarm companies that operate in Michigan by eliminating safeguards that prevent convicted felons from owning, operating and monitoring the security systems of Michigan’s homes and businesses. 

Before these bills were signed, Michigan law prohibited felons from working any job in the security alarm industry. The legislation could leave Michigan consumers unprotected by banning convicted felons from some areas and not others. “Only three specific job functions are now included for criminal background checks (those requiring face-to-face contact with customers),” the Burglar and Fire Alarm Association of Michigan (BFAAM) said. Though felons would be barred from working at customers’ premises, they could now own, manage and operate a security company, work in administration, technical support, customer service, internal sales and monitoring stations, with no one the wiser.

In addition, PA 580 and 581 state that criminal background checks are required from the Michigan state police or the FBI, instead of both. Employers could even satisfy the requirement with a background check performed by another state.

BFAAM noted that the bills were supported politically and financially by AT&T and the telecommunications industry.  According to BFAAM, AT&T’s stated intent was “not to protect the citizens of Michigan, but rather ‘to have as little regulation and oversight as possible’ while operating its new security division in Michigan.”

As large telecommunications and cable companies launch security services nationwide this year, the industry could be faced with copycat legislation in other states.

Deregulation is a heated issue in the security industry. Still, BFAAM fears catastrophic results as companies could legally place convicted felons in areas where they’d have access to  user codes, schedules and details on the systems protecting homes or businesses, as well as give them control over monitoring and dispatch.

The new acts can also be confusing in their treatment of licensing and registration requirements.  “Current license holders that choose to retain their license will be required to obtain registration under the new acts as they relate to CCTV and access control,” BFAAM explained. “Statute claims the governing agency can only ‘operate’ under the specific guidelines provided in this legislation. It then allows this same agency complete determination of what the requirements are will be for new applicants.” — By Sabrina Gasulla, Associate Editor



New $45 Million Revolving Line of Credit for Interface Security Systems

Imperial Capital announced the successful completion of a $230 million senior secured notes offering (notes) for Interface Security Systems LLC, St. Louis, a provider of managed Internet protocol (IP)-based solutions. Interface is a portfolio company of SunTx Capital Partners.

Imperial also served as the exclusive advisor to Interface in arranging a new $45 million revolving credit facility (revolver), provided by Capital One, N.A., which was undrawn as of the closing. The proceeds from the notes were used in part to repay existing indebtedness and, along with the revolver, can be used to help fund future growth. Interface is a national provider of bundled physical security and secured managed network services to primarily large, commercial multi-site customers. The company believes it provides the most comprehensive IP technology-enabled managed security solution in the market.

“We look forward to strategically allocating the new capital, along with our substantial internal cash flow from operations, to continue growing the business, providing differentiated products and services and gaining market share,” said Michael Shaw, chief executive officer of Interface Security Systems LLC.

 “Interface, as the leader in a break-out new category for business services at the convergence of physical and network security, is positioned for extraordinary success. We look forward to continuing our support of the company as it grows,” added John E. Mack III, managing director and co-head of Investment Banking.



2GIG Technologies to Sell for $135 Million

Nortek Inc., Providence, R.I., a global diversified company with technology-driven products and solutions for residential and commercial applications, signed a definitive agreement to acquire 2GIG Technologies Inc., a privately held company based in Lehi, Utah, from APX Group. 2GIG is a designer and supplier of residential security and home automation systems. Developed with the assistance of Nortek’s Linear® business, 2GIG’s Go!Control™ touchscreen panel is a self-contained, all-in-one home security and automation control panel. 2GIG also provides wireless interactive home security services and a wide range of peripheral hardware devices and system components for home security and automation solutions.

Under the terms of the agreement, Nortek will pay approximately $135 million for all of the outstanding common stock of 2GIG on a cash- and debt-free basis. The acquisition will be financed with a combination of cash on hand and borrowings under Nortek’s asset-based credit facility. Nortek’s Technology Solutions business is a major manufacturing partner to 2GIG, which is a supplier to Vivint™, currently ranked as the third-largest U.S. company based on RMR in the SDM 100. Nortek’s acquisition agreement with 2GIG includes a five-year supply agreement with Vivint.

The Blackstone Group acquired Vivint, along with 2GIG in a $2 billion transaction last year.

“Acquiring 2GIG will position our Technology Solutions business as one of the world’s top-tier hardware developers and manufacturers in the rapidly growing residential security and home automation markets,” said Michael Clarke, Nortek’s chief executive officer. “The transaction allows us to better provide long-term support to Vivint and other 2GIG customers. We look forward to welcoming 2GIG’s talented employee team into the Nortek family of companies.” 

Sean Burke, group president of Nortek’s Technology Solutions segment, added, “Joining forces with 2GIG will provide the other companies in our Technology Solutions Group with a range of exciting cross-selling opportunities.



SIA to Support School Security Initiatives Through New Committee

SIA will soon announce a committee of experts that will share its technical expertise with the administration and Congress as they work to adopt new school security initiatives.

Jay Hauhn, chairman of the board of directors for the Security Industry Association (SIA), sent a letter to President Barack Obama on the subject of security in the nation’s schools.

In the letter, Hauhn said that SIA members are committed to working with the administration, Congress, law enforcement and the education community to develop reasonable public policy solutions that may help to avert events such as the one that occurred in Newtown, Conn.

“We understand that school safety is a complicated problem requiring input and expertise from various components of the private and public sectors,” said Hauhn. “A comprehensive solution to secured schools must foster collaboration across many sectors.”

The full text of the letter can be found at



Interface Retires Westec Brand

Interface Security Systems, LLC, St. Louis, a provider of secure managed cloud services, announced it is discontinuing use of the Westec brand. Interface acquired Dallas-based Westec Intelligent Surveillance Inc. in March 2012 — and will immediately rebrand the Westec suite of interactive video surveillance services under the Digital Witness name.

Digital Witness products include virtual guard services, video verification, virtual tours, video audits and 360 maintenance for camera systems, regardless of manufacturer. All of the Digital Witness products will continue to carry the distinctive yellow triangle warning sign logo.

The Interface secure managed cloud takes control of the broadband service to ensure remote video access with the best picture quality, to create the most actionable evidence and ultimately creating the highest customer satisfaction.

“The strength of our products continues to turn heads in this industry,” said Kelby Hagar, president of the Digital Witness division. Interface founder and chief executive officer, Michael Shaw, commented, “Interface uniquely combines physical security and data security monitoring with a communications service for superior protection of people, property and logical assets.”



AFA Acquires Again,  Appoints 2 to Its Board

AFA Protective Systems Inc. completed the acquisition of Ready Alarm Inc. in December 2012. Ready Alarm, with 45 years in business, had contracts representing more than $45,000 in recurring monthly revenue (RMR), consisting of commercial fire alarm monitoring, maintenance and inspection services in the New York City marketplace.

Though historically AFA has focused on organic growth, earlier in 2012 it acquired Sera Security Inc., Southhampton, Pa., (July 2012 SDM, page 17). “Sometimes you have a very good synergistic buy,” said Richard Kleinman, AFA’s president and chief operating officer. “You can’t say a business is worth X amount of dollars [based on revenues] because if you can merge it with something, that carries a premium.”

AFA also appointed two new members to its board of directors: Thomas Von Essen and David Kleinman. Von Essen gained prominence as New York City fire commissioner when he bravely led the department through the ordeal of 9/11. Kleinman was also made a vice president of the company and oversees most of the day-to-day branch operations and is a member of AFA’s legal department.




SentryCon 2013 Moves to Mobile

SentryNet, Memphis, Tenn., will hold its annual conference in Mobile, Ala., April 17 and 18, 2013.

SentryCon is trying out a new venue and a new city. Registration is open at The Platinum sponsor this year is Linear Corp, the Silver sponsor is Honeywell and the Bronze Sponsor is Videofied. SentryCon will kick off on Tuesday evening with a causal meet-and-greet in the lobby of the Marriot Hotel. The classes on Wednesday and Thursday will focus on building your business from the inside out. Speakers include Duane Paulson of Linear, Gordon Hope and Brett Guillote of Honeywell and Deanna Blair of Videofied. SentryNet vendors will be available at the annual tradeshow on Wednesday afternoon.



Conference Highlights Outstanding Growth Pattern for SedonaOffice Users

In the midst of one of the most unpredictable winters in recent memory, SedonaOffice users got a chance to enjoy the temperate weather and quiet luxury of Marco Island, Fla., during the 2013 SedonaOffice Users Conference. These conditions, along with an expanded curriculum and a knowledgeable group of staff and guest presenters, seemed to create an ideal environment for learning and networking. The conference was held Jan. 14-16 at the Marco Island Marriott Beach Resort. More than 280 people attended the conference, representing nearly 80 companies.

The conference is primarily a venue for SedonaOffice to educate and interact with its users about new developments and best practices. But it was the dynamic among the attendees that co-founders Don Faybrick and Michael Marks were most impressed to see.  “One of the things we’ve tried to do in our conference — and I think it has really come together — is to build a SedonaOffice community,” said Marks, president of SedonaOffice. “If you watch the companies that are here: there are friendships being made. I had someone come to me and say [here people aren’t guarded about what they say] everyone is open. They’re talking about their businesses. They’re sharing ideas. They’re talking about better ways to run and operate. They’re exchanging phone numbers. That’s just a great feeling from our perspective. The clients aren’t just relying on us, they’re relying on each other.”

Certainly, experienced users chiming in during education sessions to offer first-hand tips as well as having detailed conversations with other users, from different companies, were common occurrences throughout the conference. Every meal, break and social event became another opportunity for someone to pull out a tablet and demonstrate a feature or walk though a setup with another user.

The education sessions were grouped into six tracks this year: Job Management, Operations & Accounting, General Ledger, Executive, WeSuite and the new Advanced Users track. The expansion of the tracks was a direct result of the advanced expertise of its users. “Our users are well beyond the basics now,” Marks pointed out. “They want to know how to more efficiently run and operate their businesses, how to increase their RMR. Everything’s matured now. Our application has matured. We have people who have been using the software for over 10 years now,” Marks added.

Special guest presenters included Gretchen Gordon, managing partner of Braveheart Sales Performance, who led several sessions in the Executive track on sales and hiring practices; Barry Epstein, president of Vertex Capital Corp, who spoke about things to consider before buying a security company; and Ron Davis, owner of Davis Marketing Group, who joined Epstein in discussing the state of the market in respect to acquisition opportunities and financing options.

The keynote presentation was delivered by Michael Barnes, founding partner of Barnes Associates. Barnes used industry research, including the SDM 100 report, to give SedonaOffice users insight into the security market of 2013 and the potential opportunities and challenges in it. He explored how the entrance of cable and phone companies could affect the security and how the current market bodes for large security companies versus smaller companies. Based on a pre-conference survey of SedonaOffice clients, Barnes revealed that SedonaOffice users are growing at rates well above the industry average. “On a one-year, three-year and five-year basis, looking at historical compounded growth rates the industry shrank,” Barnes explained. “The average SedonaOffice user’s revenue: 12 percent increase year on year for the last year, 9.9 percent over the last three years on a compounded basis and 7.6 percent on a five-year basis. That’s an outstanding rate of growth relative to the industry.

“Better yet, in terms of value creation, on a one-, three-, five- and six-year basis, SedonaOffice users grew [RMR] at almost twice the rate of the industry on average.”

Though impressed by the numbers, Faybrick and Marks said they don’t come as a surprise.

“They’re good customers, I think, to look for a product like us,” Faybrick said. “But then I think the product works for them in a way that supports that mindset. They’re growth-minded anyway and we help them along that way.”

In addition, Marks attributes these higher growth rates to the daily work these companies put into assessing and measuring their business performance. He noted this is a time- and expense-consuming task, but one that demonstrably has a payday. — By Sabrina Gasulla, Associate Editor



Digimerge Acquisition to Expand Product Range, Distribution Channel for FLIR

FLIR Systems, Wilsonville, Ore., a supplier of thermal imaging technology, acquired Lorex Technology, and its subsidiary company Digimerge Technologies for $1.32 per share, representing an aggregate purchase price of $60 million.

“From FLIR’s perspective, Digimerge brings to FLIR a high-quality professional video security product line including analog and IP cameras and recorders,” said Bill Klink, vice president Security & Surveillance, FLIR Commercial Systems Inc. “FLIR Thermal cameras are primarily used for outdoor perimeter security applications, and almost every project for thermal cameras also requires a significant number of visible light cameras as well.  The combination of Digimerge’s video products with FLIR’s existing range of thermal security cameras creates a complete video security product line giving our integrators and distributors a comprehensive, end-to-end, video security solution. There are several other areas of synergy between FLIR and Digimerge including complementary distribution and channel structures and future product development, manufacturing processes and integration.”

FLIR branded products will soon be introduced through Digimerge’s well-established network of major security distributor partners, and will quickly grow to include a full line of affordable DVRs, analog cameras, NVRs and IP cameras. FLIR will also integrate its thermal imaging technology into a new line of ultra low-cost cameras that will enable distribution channel customers to realize the advantages of thermal video.

Wayne Hurd, executive vice president of Digimerge, added, “The Digimerge brand will gradually migrate over to FLIR brand through a process that makes sense; ensuring we don’t cause confusion in the marketplace.”

FLIR plans to migrate its technology into the Digimerge product range, “although not by altering existing models,” Klink said. “The existing product lines of FLIR and Digimerge will be combined giving all of our customers access to our full range of solutions. Beyond that, new products will be developed that take advantage of the strengths and benefits available through utilization of both visible and thermal imaging.”

As far as Digimerge’s existing customers, Klink noted that Digimerge’s management structure will “remain intact” to ensure a smooth transition for the companies’ distributors and channel partners, “and no disruption in product delivery or customer service.” — By Sabrina Gasulla, Associate Editor



CEDIA 2013–2014 Leadership Reflects Association’s Key Initiatives

The Custom Electronic Design & Installation Association (CEDIA), Indianapolis, announced the 2013 volunteer Board of Directors. In an effort to align the skills sets of the leadership with the initiatives set forth in CEDIA’s newly adopted Strategic Plan, the nominating committee researched and evaluated the board constituents to determine what strategic competencies were needed to accomplish the goals for the 2013–2014 term. The search resulted in four new board members.

“Each nominee completed a detailed questionnaire and went through a series of interviews designed to assess their respective competence and experience in the skill areas required to support’s CEDIA strategic initiatives. This process allowed us to form a strong slate of candidates that possessed the skills and experience to propel CEDIA forward in a thoughtful manner with new energy and insight,” said Randy Stearns, chair of the CEDIA Nominating Committee.

Members of the CEDIA Board of Directors are not only tasked with guiding the strategic direction of the association, but also with ensuring CEDIA’s defining principles remain relevant and adapt to members’ changing needs.

The 2013–2014 leadership includes:

•          Federico Bausone, Multisistemas BVC Sa de Cv, San Pedro Garza García, Nuevo León, Mexico

•          Robert Brown, HED South – Home Entertainment Design South, Hollywood, Fla.

•          Steven Crawford, Brand Strat 1 LLC, San Clemente, Calif.

•          Buzz Delano, Delano Associates, San Clemente, Calif.

•          Dennis Erskine, Erskine Group Inc., Atlanta, Ga.

•          Mark Hodges, Forefront Innovation, The Woodlands, Texas

•          David Humphries, Atlantic Integrated aka: Thea & Schoen Integrated Systems, Catasauqua, Pa.

•          Richard Millson, Millson Technologies Inc., Vancouver, B.C.

•          Larry Pexton, Triad Speakers ~FM~, Portland, Ore.

•          Bill Skaer, Eric Grundelman’s Cool AV ~FM~, Mesquite, Texas

•          Gordon van Zuiden, cyberManor, Los Gatos, Calif.

For information visit



An Educational Hub

ISC West’s education program has been re-titled SIA Education @ ISC to reflect the Security Industry Association’s (SIA) involvement in growing and evolving the ISC West educational program, the association said. The curriculum of wide-ranging topics and technology discussions are tied together by the theme, “Next Generation Security for the Next Generation Professional.” The schedule is especially designed to allow attendees more time to explore the show floor. SIA added two new tracks dedicated to the technologies that are creating smarter buildings and cities, and helping business enterprises learn to use hidden business intelligence to drive bottom-line improvements.

PSA-TEC is holding Educational Classes at ISC West this year on Tues., April 9. Included in this year’s educational sessions are a course on Leadership at all Levels: Integrator-Proven Practices to Increase Professionalism and Profitability. A panel of integrators will discuss how effective leadership within the organization drives success for the company as a whole. Additional classes include a PSIM workshop, a discussion on customer buying habits, and more.

This year, SIA Education @ ISC introduced a series of four sessions focusing on K-12 and higher education campus security. Sessions will discuss school safety security and improvements from different angles that integrators can benefit from, including The Future of Crime Prevention: Stopping Crime in Remote Areas of Campus; NFC on Campus: Using Smart Phones as Campus Credentials; Critical Incidents in Higher Education: The Case for an Intelligent Response; 60 Sites, 50 Miles and 5 Key Lessons Learned: How One School District Made the Move to IP Video Surveillance. See the full schedule of education sessions under 2013 Session Listings at



Bosch’s Truck, ‘You Rock!’  Event Get Bigger  and Better

Bosch announced it will have a bigger booth location at ISC West that will feature the completely overhauled Bosch product demonstration truck and much more. Bosch will show off growth of its IP video portfolio as well as its new B series intrusion control panel.

Then on Thurs., April 11, security professionals by day release their inner rock stars at night. Bosch will host a special customer appreciation event at 5 p.m. in Venetian Ballrooms G&H, where guests can catch a live show by the Bosch house band — the Magneatos — and get a chance to rock out on stage.

The Magneatos features talent from the Bosch sales, marketing and executive teams, however, customers can also participate as guest performers who sing or play with the band in this jam session.


Verisk Joins PPVAR

The new Partnership for Priority Video Alarm Response (PPVAR) announced that Anthony Canale, vice president of Verisk Crime Analytics, joined its board of directors. Verisk Crime Analytics, a unit of Verisk Analytics, supports law enforcement with crime-related analytical tools that bridge the gap between the public and private sectors to provide value for the industries they serve.

“Our involvement with PPVAR fits with the mission of Verisk Crime Analytics to use data and analytical tools to support public safety operations and to help our clients reduce the economic impact of crime,” Canale said.

Verisk Crime Analytics owns and operates national crime databases that provide services to the construction, retail, transportation, manufacturing, and insurance industries.

Verisk is the parent company of ISO (Insurance Services Organization). ISO is responsible for analyzing community risk mitigation for underwriters and affects the insurance rates of every community in the United States. This service is a determining factor in how much a community pays for property insurance based upon the fire risk assigned to the community by ISO.  The better the community fire protection, the lower the insurance for the citizens.

Ideally, video verified alarms and priority response would be included in the community risk mitigation calculation for property crime, PPVAR said.

“The economic downturn has put public safety budgets under pressure while increasing the motivation for certain property crimes,” explained David Shillingford, president of Verisk Crime Analytics. “It’s therefore imperative that private industry become better at collaborating and sharing data with the public sector and creating analytical crime prevention methods. PPVAR is a great example of this new breed of public-private partnerships.” 


ISC Mobile

The ISC Mobile app is a great on-the-go organizational tool during the show. Plan a point-to-point route to the vendors you don’t want  to miss on an interactive show floor map, check out the special events schedule if you’ve got some free time or get new product information. This year the app features some new capabilities, including filtering exhibitors by product category or segment and searching products, exhibitors and conference sessions by keywords. The app is available for iPad, iPhone, Droid, Blackberry or e-Reader devices.


New Player in North American Video Management Market

WavestoreUSA, Mangonia Park, Fla., a provider of professional digital video and audio recording solutions for surveillance applications, announced its official company launch. WavestoreUSA will serve North American security integrators, providing reliable, innovative and high-performance video management systems.

WavestoreUSA is a global provider of Wavestore professional digital video and audio recording solutions for security and surveillance applications. Founded more than 10 years ago in the United Kingdom, Wavestore creates flexible, highly scalable video management systems with leading-edge motion detection technologies and intelligent analytics.

“As veterans to the security industry, WavestoreUSA understands how important it is that our customers are presented with professional systems that deliver functionality without complexity,” said Mario Popu, general manager, WavestoreUSA. “We develop, test and manufacture all our products, so we are uniquely positioned to offer excellent technical support and ensure a high standard of customer service.”



4th Annual Security 5K

The Security 5K/2K is a chance for the security industry to come together with a common goal in mind — helping children in need.

All proceeds generated by the race will be contributed to Mission 500, an organization determined to get the security industry to sponsor and save children through the World Vision humanitarian organization.

The race will take place during ISC West in Las Vegas on April 11, 2013 at 7:30 a.m. For information or to register, visit



Bob Haskins Joins Guardian Protection Services

Guardian Protection Services Inc., Warrendale, Pa., announced that Bob Haskins, former president of Interlogix, a division of UTC Climate, Controls and Security within United Technologies Corporation, joined Guardian in the newly created position of vice president of Strategic Planning and Business Development.

Haskins actively engages in establishing enhanced business models for both the internal account generating units of Guardian, as well as its Authorized Dealer Program.

Chief executive officer, Russell Cersosimo, stated, “Bob is a well-known industry leader. His unique and vast experience, including his success in developing strategic partner programs, introduces a new and exciting dimension to the Guardian family. This will pay great dividends for our dealer program, which is already known for its stability and successful track record. Our dealers will be the fortunate recipients of Bob’s in-depth product and service knowledge. From the corporate perspective, Bob will help us utilize our significant financial and operational strengths to continue the expansion of the Guardian Authorized Dealer network.”

Haskins comments, “Guardian is one of the most well-managed businesses I’ve seen in the industry. I have esteem for both the company culture and the leadership at Guardian. I am looking forward to contributing to the continuing success of Guardian.”


Tri-Ed Rebrands

Tri-Ed, Woodbury, N.Y., an independent security distributor, unveiled its new logo, which relays the company’s core vision — to be the preferred end-to-end solutions provider in the security industry, connecting its customers with the optimal technology to deliver value to the end user, according to the company.

Tri-Ed has served its customers and the security industry for more than 30 years. Over the past eight years, Tri-Ed increased its footprint from 20 to 60 locations through organic growth and strategic acquisitions. After the acquisition of Northern Video in 2010, Tri-Ed co-branded its logo to reflect the merger of the two organizations. Tri-Ed’s most recent acquisitions included Seabreeze Security Distributors and SGI in 2012.



Diebold Makes Leadership Changes

Diebold Inc., North Canton, Ohio, announced Thomas Swidarski, president and chief executive officer (CEO), stepped down from the company and its board of directors. In addition, George Mayes, Jr., executive vice president, global operations, was promoted by the board to the newly created position of chief operating officer, reporting directly to Henry D.G. Wallace, Diebold executive chairman of the board. Wallace assumes regular oversight of the company until a new CEO is hired; Mayes will be responsible for daily operations. The search process for a new chief executive was underway at the time of writing in mid-February. 

“We wish to thank Tom for the leadership and integrity he provided during his 17-year career at Diebold — the past seven years as our chief executive. This was a very difficult decision, and we wish Tom all the best in the next step in his career,” said Wallace. ”Progress has been made over the past several years in many areas. However, the board’s judgment is that given the company’s ongoing performance and pace with which it is delivering tangible value, it is in our stakeholders’ best interests to make a change in leadership at this time.

“As we look to the future, the board feels Diebold’s strategies are sound given the company’s progress on several fronts, including integrated services and the growth potential of electronic security. Our anticipated revenue growth for the year is evidence that our markets remain sound,” Wallace continued.  “However, the company’s execution of its strategies has not been what we want or expect and we have underperformed against the opportunities in the marketplace.”

In discussing Mayes’ promotion to the COO role, Wallace said, “George’s near-term focus will be to look at all aspects of the organization and identify areas that will help us accelerate the speed with which we reduce our cost structure and capitalize on changes in the marketplace. His track record of delivering sound, fiscally responsible results in his career makes him ideally suited to lead our operations during this time of transition.  This is a challenging opportunity, yet I am confident in our ability to begin the process of putting this great company back on a more positive trajectory.”



Companies You Should Know: Real-Time Technology Group (RTTG)

Real-Time Technology Group (RTTG), Flemington, N.J., was founded in 1999 with the goal of helping public agencies and private enterprises improve the performance of safety and security programs through technology. That led to “developing and operating personal identity and credential management technologies that drive real-time personnel assurance at some of the country’s largest construction projects and highest-value terrorist targets, including the World Trade Center and NY-metro area transportation infrastructure,” stated Dan Krantz, CEO of RTTG.

RTTG’s technology solutions are set up to serve vertical markets such as airports and transportation, critical infrastructure, public landmarks and city centers, healthcare and pharmaceuticals, education and corrections, among others.

The applications of the technology can vary from traditional identity management, to keeping equipment inventory and tracking objects, to quickly determining whether anyone in a location has the required professional and training certifications to respond safely and securely to an emergency.

RTTG sells its solutions through the security channel as well as directly to customers. With a background in marketing and sales through complex business channels, Krantz emphasized that protecting margins for integrators by providing special pricing not available to end users is a key component of the company’s market strategy.

In 2013, RTTG is working on a key integration for the security market with situational awareness platforms (SAPs). Krantz commented, “SAPs typically pick up alarms, sensors and video to tell you what’s happening and where it’s happening. But those systems don’t identify who’s involved, or what people you have in the vicinity that would be the best people based on verified skill-sets to respond to an incident.”

To learn more, continue reading at or visit  — By Sabrina Gasulla, Associate Editor



New CEA Chairman to Champion Small Business, Industry Growth

Jay McLellan, president of HAI by Leviton, is the new chairman of the Executive Board of the Consumer Electronics Association (CEA®). In his newly appointed role, McLellan oversees the strategic direction of the CEA, the trade association representing more than 2,000 consumer electronics and technology companies and billions of dollars in revenue.

In a year when home automation, or the “connected home” as it was tagged at the Consumer Electronics Show (CES) held in Las Vegas, took a huge leap forward in attention, with a record number of companies showcasing connected home products and services, it was very notable that the newly appointed CEA chairman has a home automation/small business background, only adding to the momentum.

In an exclusive interview with McLellan, SDM asked about his vision for the CEA, the impact of his small business background, the future of home automation after a big showing this year at CES, and more.

“I’m exceptionally excited,” an enthusiastic McLellan told SDM. “I’m from a security and home automation background, and, more importantly, from a small business background, so I’m very aware of CEA’s mission to want to make it possible for everyone in the billion-dollar electronic business to keep growing their business, to create jobs, and to innovate, innovate, innovate so we can move forward with new business models and new ideas as an industry.”

As he takes on his new role, McLellan told SDM he remains focused on those key goals, starting with a healthy economy.

“CEA promotes the development of business and the growth of the economy in the United States. It is a $206 billion business and the only thing that can move the needle on it is a healthy U.S. economy. With that in mind, we actively work in Washington for things that affect everybody like increased spectrum for wireless, more Internet capability, broadening what you can do with WiFi, etc.” 

For the full interview, continue reading at — By Heather Klotz-Young, Senior Editor



Companies You Should Know: HDSTOR

When it comes to video surveillance, reducing failure rates can sometimes be the most critical (and puzzling) part of the job. HDSTOR, Phoenix, Ariz., a specialized hard drive distributor, started doing business in the security industry four years ago with the goal of increasing the reliability of these systems. The company does this by offering to educate its customers on the different types of drives being sold and providing pre- and post-sales support that’s hard to come by from other sellers of these products, believes Marc Cisneros, HDSTOR’s senior vice president sales and marketing.

The company is focused exclusively on providing industrial-grade hard drives to the security industry, which allows it to have “in-depth knowledge about how the drive fits into the video surveillance system; which drives to use as there are many different models and price ranges; and support for returns, higher failure rates than should be expected, designing new products and product life-cycle issues,” Cisneros related.

The company sells primarily to equipment manufacturers, but also supports security distribution as well as integrators and dealers directly. But it draws the line at selling directly to consumers.

Though HDSTOR works with all major hard drive manufacturers, it strongly features Western Digital hard drives. WD has focused resources on the surveillance industry. These include engineering support, advance notice of product development, special return policies, competitive pricing, and more.

On small business projects where a company is unlikely to have IT personnel available to put in hard drives, many end up buying readily available consumer-grade drives online. “It’s a common mistake to believe you can use a consumer-grade drive in a 24/7 recording application and expect acceptable reliability,” Cisneros said.

To learn more, continue reading at or visit — By Sabrina Gasulla, Associate Editor



Micro Key Solutions Names New COO/CFO

Micro Key Solutions, Kissimmee, Fla., a provider of software solutions for the security alarm industry, announced that Joe Ligouri was promoted to chief operating officer as well as chief financial officer.  Ligouri joined Micro Key in 2007 as the operations manager and has been in charge of the day-to-day operations, overseeing the company’s financials, human resources, as well as serving as the vendor liaison.

In his new role as COO/CFO, Ligouri is directly involved with Micro Key’s economic strategy, financial forecasting and improving the company’s overall performance moving forward.  Along with these responsibilities, he still manages the budgeting and high-level administration efforts to ensure that the customer, employee and organizational requirements are being met.



ISC West 2013

ISC West is still growing! With more than 1,000 exhibitors, 60-plus education sessions and a larger-than-life venue at the Sands Expo Convention Center in Las Vegas, making the most of ISC West 2013, being held April 9-12 requires a bit of preparation. As you plan your show, take a look at some of the trade show and conference highlights and planning tools in this exclusive ISC West 2013 section.


SIA Gears Up for 2013 Ride  for Education: April 13

The Security Industry Association (SIA) is gearing up for its 10th annual Ride for Education — an event held in conjunction with ISC West that helps raise money to fund educational opportunities for first responders.

According to a SIA press release, the Ride for Education is a “one-day trek that takes participants through some of the most scenic areas of southern Nevada, including Valley of Fire State Park. This year’s ride is scheduled for Sat., April 13, the day after the conclusion of ISC West. While most participants ride motorcycles during the event, sports cars and other vehicles are also welcome. Lunch will be provided to all participants, as will a specially designed ‘2013 Ride for Education’ shirt.”

The net proceeds from the event will go to the SIA First Responders Scholarship Fund, which provides awards of $1,000 to law enforcement officers and firefighters for job-related education and training, the release states.

The registration fee for the event is $40 per person ($30 if riding as a passenger), and you can register at SIA has arranged for a special rental rate ($125) from Las Vegas Harley Davidson, the website says.

Law enforcement officers, firefighters and military personnel may participate at no charge.


Meet a Seinfeld Star at ISC West

Security Networks is getting ready for its first show floor appearance at ISC West  this year. The company will host Larry Thomas, also known as “the Soup Nazi” on the TV show “Seinfeld.” The Soup Nazi was known for a puzzling approach to customer service, which the Security Networks folks, 2012’s SDM’s Dealer of the Year Honoree, may be trying to reform. Together, they will be serving free bowls of soup on Wed., April 10 and Thurs., April 11 from 11 to 1 p.m. at the Security Networks booth, No. 26099. First come, first served; arrive early or risk hearing, “No soup for you!” Thomas will be available for photos. Security Networks will also be raffling off limited-edition “Seinfeld” memorabilia each hour during the show.



News Briefs

Pakedge Device & Software, Foster City, Calif., appointed Michelle Coleman as international sales manager. Coleman is responsible for coordinating the expansion of Pakedge’s international sales and distribution. She oversees all aspects of the company’s international distribution efforts.


Datawatch Systems, Bethesda, Md., is expanding its New York City operations with the addition of a regional sales manager. Michael Schindel, a professional with more than 15 years of experience in commercial real estate brokerage and digital marketing, joined the firm to generate new business and oversee existing accounts throughout New York City, Westchester, Conn. and N.J.

The company also hired Russell Austin Gates at its Houston office as regional sales manager. Gates, with more than 17 years of experience, provides sales experience and market expertise on the latest cutting-edge office building security systems to owners and managers in the Houston area. 


ScanSource Inc., Greenville, S.C., appointed a new chief financial officer. Charles Mathis brings more than 25 years of experience in financial management and operations to this position. He brings far-reaching global finance expertise to ScanSource, having conducted business extensively throughout Europe, Latin America and Asia-Pacific over much of his career. 


Security Systems of America (SSA), Pittsburgh, appointed Timothy Moneypenny as sales manager.  Moneypenny’s responsibilities at SSA include generating new business, managing and growing the sales team, and targeting specific vertical markets and projects. 


Guardian Protection Services, Warrendale, Pa., hired Barry Bruce, senior vice president, corporate sales. Bruce has extensive executive-level and sales management experience in the security industry including 12 years at Brink’s Home Security. Bruce implements sales initiatives and oversees all aspects of the sales activities in all five of Guardian’s business units.