Avigilon Corporation announced its financial results for the three months ended March 31, 2012. All figures are stated in Canadian dollars unless otherwise noted.
First Quarter 2012 Highlights ●Revenue was $17.8 million, an increase of 77% over Q1 2011 revenue of $10.0 million. ● Gross margin was 48%, compared to 44% a year earlier. ● EBITDA was $1.2 million, an increase of 100% over Q1 2011 EBI...
Avigilon Corporation announced its financial results for the three months ended March 31, 2012. All figures are stated in Canadian dollars unless otherwise noted.
First Quarter 2012 Highlights
●Revenue was $17.8 million, an increase of 77% over Q1 2011 revenue of $10.0 million.
● Gross margin was 48%, compared to 44% a year earlier.
● EBITDA was $1.2 million, an increase of 100% over Q1 2011 EBITDA of $0.6 million. (See “Non-IFRS Measures” below.)
● Net income was $0.6 million, compared to $0.1 million in Q1 2011.
"In the first quarter of 2012, we effectively executed on our top priority of revenue growth," said Alexander Fernandes, President and CEO at Avigilon. "Our innovative HD technology is enjoying rapid and widespread global customer adoption while also accelerating the video surveillance market's transition from analog to high-definition."
Financial Review
Avigilon reported revenue of $17.7 million in the three months ended March 31, 2012, an increase of $7.7 million or 77% compared to $10.0 million of revenue in the comparable period of 2011. The Company generated higher product sales volumes worldwide, as a result of new product offerings, expansion into new markets, and greater penetration in existing markets.
Revenue growth was particularly strong in the North America, EMEA, and Latin America regions. Avigilon's revenues have historically experienced some seasonality, with the first and third quarters generally being slower than the second and fourth quarters.
Gross margin was $8.5 million in the first quarter, an increase of $4.1 million or 93% from $4.4 million the previous year. As a percentage of revenue, gross margins were 48% in Q1 2012 compared to 44% a year earlier, with the increase largely due to a change in sales mix towards higher margin products.
Selling and marketing expenses were $4.3 million in Q1 2012, an increase of $2.0 million or 82% over the prior year's first quarter. The increase was primarily due to a higher number of sales personnel to support continuing revenue growth, and the development of a new and expanded marketing program.
Research and development expenses, net of related income tax credits, were $1.1 million in the first quarter of 2012, a $0.5 million increase compared to the previous year. The Company has increased its investment in R&D as it focuses on continuing to expand and enhance its product offering.
General and administrative expenses were $2.1 million in 2011, up $1.1 million from $1.0 million of G&A expense in 2010. The increase was primarily due to additional personnel and their related expenses to support Avigilon's growth and its status as a public company.
EBITDA was $1.2 million in the first quarter, an increase of $0.6 million or 100% compared to $0.6 million in Q1 2011. The increase was attributable to the growth in revenue.
Net income for the quarter was $647,000, an increase of $526,000 compared to net income of $121,000 in Q1 2011. Earnings per share were $0.02 (basic and diluted), compared to $0.01 a year earlier. Avigilon's basic share count at March 31, 2012 was 31, 261,287.