Security Systems News

JUL 2017

Security Systems News is a monthly business newspaper that reaches 25,100 security installers, product distributors, central stations, engineers & architects, and security consultants. Our editorial coverage focuses on breaking news in all major se

Issue link:

Contents of this Issue


Page 25 of 36

Fortress Security secures $2 million in funding By Paul Ragusa DALLAS—Fortress Security, a full-ser- vice residential and commercial security system company based here, announced that it has secured funding worth up to $2 million, which will be used to expand the company, according to CEO Jerrod Smith. "The primary focus with the fund- ing is almost exclusively to drive RMR growth," Smith told Security Systems News. "That is our business model, so we will be bringing on new accounts—both commercial and residential—to increase our recurring revenue overall." Smith said that the funding, a vast majority of which comes from Alarm Financial Services, or AFS, based in Corte Madera, Calif., will allow the c o m p a n y t o b e t t e r s e r v e i t s c u s t o m e r s in areas across Texas, includ- ing Dallas, Fort Worth, Austin, San Antonio and Houston, including meeting the high demand Fortress is experiencing of acquiring new customers throughout Texas and Oklahoma. "We've always been a growing com- pany, but in the past few years we've seen growth for home security systems and commercial security systems increase exponentially," Smith said. "The infusion of funding means that we will continue to deliver outstanding customer service to our current clients as well as offer the most advanced security products and services to new customers much more rapidly." In terms of overall growth, the com- pany is coming off its "best year ever in over 15 years in business," according to Smith, including a more than 40 percent year-over-year growth rate. "We are on pace this year to be over 50 percent in terms of year-over-year growth," Smith noted. "In terms of reve- nue growth, our top line revenue growth is on track to be over 50 percent and our RMR growth is on track to be over 40 percent." The company, he said, has experienced growth in every area on both the residen- tial and commercial side. The company's accounts are currently 50 percent com- mercial and 50 percent residential, with 70 percent of the total revenue coming from the commercial side. "On the commercial side we see a lot of growth in adding new systems for existing customers," Smith explained. "We have a lot of existing customers who may have put a system in with us and then call us back 3- or 6 months later for cameras and access control or they ask if we do commercial fire, so that space is really growing." Smith pointed out, "Whereas years ago we were just a security alarm sys- tem installation company, now we can do cameras and access control and fire, and we find that a lot of commercial compa- nies/clients, they want one provider that will do all of those systems, so being able to offer all of those systems and services on the commercial side is a huge advantage." On the resi- d e n t i a l s i d e , F o r t r e s s h a s had success recently working with homebuilders. "We have brought on one builder that has added some RMR growth, and we also have added quite a few salespeople as well that are in the field bringing on business," Smith said. Although Smith noted that demand for smart home products "has kind of flat- lined a bit for us," he said that high-end home automation is still a strong area of growth. "We are also a Savant dealer, and we do put Savant's home automa- tion system, which is higher end, in for several of our builders and we are seeing a lot of growth with that." Beyond home automation, he said the company is experiencing great demand for security alarm systems and cameras. "We have recently begun installing our security and camera systems integrated with I-View Now, and people are loving that," he said. "When we are putting in cameras, even on the commercial side, it is usu- ally an I-View Now connected system, and that is where we are seeing a lot of revenue growth on RMR from cameras— from the I-View Now service." Founded in 2001, Fortress Security recently earned the Honeywell Dealer Council of Excellence and ITI/GE Amer- icas Dealer Excellence Award. SSN Continued from page 20 battle "We have recently begun installing our security and camera systems integrated with I-View Now, and people are loving that." — j errod Smith, Fortress Security Security dealers can also provide homeowners with a better level of interoperability and network security and stability, as Parks found that as more products are purchased stand- alone and then brought into a con- nected home, the risk of fragmented consumer IoT experiences increases. "As consumers become more con- nected, their digital lives in many ways become more complicated, and solving this potentially fragmented consumer experience, addressing pri- vacy concerns, and crossing tradition- ally separate boundaries will be the dominant challenges for companies in 2017 and 2018," Abdelrazik noted. Security dealers can and should be the ones to solve this problem, and many already are—providing secu- rity as well as support, guidance and options to be that smart home provider as well. SSN WHOLESALE MONITORING FUNDING PROGRAM LOAN PROGRAM mPERS PROGRAM BULK ACQUISITION M2M COMMUNICATOR (855) 776-2210 everything under one roof SEC u RIT y S y STEMS NEWS july 2017 Residential s ystems 21

Articles in this issue

Links on this page

Archives of this issue

view archives of Security Systems News - JUL 2017