Avigilon (TSX:AVO) today announced its Q4 and fiscal 2012 results. The Vancouver-based company earned $7.2 million on revenue of $100.3-million, up 67% from the $60 million topline the company posted in 2011.
CEO Alexander Fernandes said the year was a successful part of a longer term growth plan.
“We are very pleased with our 2012 performance,” he said. “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.”
Founded in 2004, Avigilon designs and sells next-generation surveillance systems. Management says the surveillance market is fragmented because to date there has been no integrated supplier of equipment, meaning the majority of end users do not have high definition systems due to compatibility issues and a lack of industry standards. Avigilon allows clients operating mission critical environments such as prisons and casinos to have install a high def system that is reliable as analog, and has the added benefit of providing video resolution that is standing up in courtrooms, which reduces legal costs. Avigilon has sold over 210,000 camera and software licenses that have been installed at more than 17,000 customer sites.
Avigilon’s gross margin was $49.4 million in 2012, or 49% of revenue. That number was up from 2011’s $27.5 million, which was 46% of revenue. The company says the year-over-year increase in gross margin reflects a sales mix shift toward more profitable products, as well as the impact of higher purchasing power, greater economies of scale and improved manufacturing efficiencies.
In November, Avigilon earned the top spot on the 15th annual Deloitte Technology Fast 50 list, which measures Canada’s fastest-growing tech firms. The company had a a five-year revenue increase of 29,917%.
Shares of Avigilon closed today down .8% to $11.13.