Revenue growth continues to be driven by a strong rise in product sales volumes worldwide, reflecting sales of new product offerings the Company introduced throughout 2012, entry into new global markets and greater customer adoption in existing markets. Avigilon experienced strong year-over-year sales growth across all six of the Company's key target geographic regions, particularly in areas where the Company expanded sales staff over the past year.
Avigilon announced its financial results for the three and 12 months ended December 31, 2012.
2012 Financial Highlights
- Revenue was US$97.7 million (CAD$100.3 million), an increase of 67% from $58.5 million in 2011.
- Gross margin was 49%, up from 46% in 2011.
- EBITDA was $12.4 million, a 92% improvement over $6.4 million in 2011. (See "Non-IFRS Measures" below.)
- Net income was $7.0 million, an 87% increase compared to $3.7 million in 2011.
Fourth Quarter 2012 Financial Highlights
- Revenue was $31.8 million, an increase of 73% over Q4 2011 revenue of $18.3 million.
- Gross margin was 50%, in line with 50% a year earlier.
- EBITDA was $5.2 million, a 120% improvement over Q4 2011 EBITDA of $2.3 million. (See "Non-IFRS Measures" below.)
- Net income was $2.9 million, an 88% increase compared with net income of $1.6 million in Q4 2011.
"We are very pleased with our 2012 performance," said Alexander Fernandes, President and CEO of Avigilon. "We delivered substantial top line improvements and nearly doubled both EBITDA and net income, while also strategically investing in the business to support our ongoing growth plans. There are significant growth opportunities in the worldwide surveillance market. As such, we remain highly focused on further expanding our global sales team, continuing to deliver innovative products and investing in marketing to build more brand awareness."
Revenue growth continues to be driven by a strong rise in product sales volumes worldwide, reflecting sales of new product offerings the Company introduced throughout 2012, entry into new global markets and greater customer adoption in existing markets. Avigilon experienced strong year-over-year sales growth across all six of the Company's key target geographic regions, particularly in areas where the Company expanded sales staff over the past year.
Research and development (R&D) expenses, net of related income tax credits, were $5.0 million for 2012, a $1.9 million, or 65%, increase compared to $3.0 million in 2011. Gross R&D spend was $6.2 million in 2012, compared to $3.9 million in the prior year. The increase in spending is due to additional new hires, in line with the Company's plan to expand its product development team to continue to enhance its product offering. Avigilon expects to continue to increase its R&D investment to support new product development, bringing the Company to more typical industry levels for R&D as a percentage of revenue.