Avigilon soars after record third quarter

Shares of Avigilon (Avigilon Stock Quote, Chart, News: TSX:AVO) are up sharply today after the company reported third quarter results that bested expectations.

The Vancouver-based next-gen security provider earned $11.2-million on revenue of $71-million, a 39% bump over last year’s $51.2-million topline.

“Avigilon delivered another record sales quarter in the third quarter, underpinned by particularly strong growth in the United States and Europe, the Middle East and Africa, as well as robust sales of new products,” said CEO Alexander Fernandes “Ongoing innovation remains a key pillar of our strategy to increase market share. In the third quarter we had several important new product introductions, including the low-cost high-definition video appliance series, Avigilon Control Center 5.4, and the HD dome and bullet cameras with adaptive video analytics. Avigilon continues to make substantial investments in the business, with an eye on continued profitability, as we grow toward our goal of $500-million in run-rate revenue by the end of 2016.”

Avigilon says it plans to continue to spend on sales and marketing to drive sales. Expenses in that area increased 48% to $14.7-million in Q3.

After more than two years as a market darling following its 2011 IPO, AVO shares slid in 2014. The company’s stock fell from a January high of $34.00 to recent lows under $14. At press time, however, shares of the company were up 28.7% to $19.30.