Avigilon Posts Strong Q4 Earnings
Avigilon reported fourth quarter revenue of $CAD109.1 million, an increase of 37 per cent over revenue in Q4 2014. Revenue for 2015 of $369.4 million represents an increase of 36 per cent compared with revenue of $271.4 million CAD in 2014.
“When we went public a little over 4 years ago, we set an ambitious 5-year goal to grow Avigilon’s annual revenue run rate from $60 million to $500 million by the end of 2016,” Avigilon president and CEO Alex Fernandes said. “At our current run rate of over $435 million, I am pleased to confirm that we expect to accomplish our 5-year goal on time as promised.”
Revenue growth for both Q4 and the full year 2015 reflects increased product sales worldwide, driven by greater customer adoption in existing markets, further penetration of new target regions and sales of new products, the company said. In 2015, revenue was strong across all regions, with year-over-year sales growth between 2 per cent and 49 per cent in all six of the company’s target geographic regions.
Gross profit was $61.2 million in Q4 2015 (56 per cent of revenue), compared with $45.7 million (58 per cent of revenue) in Q4 2014. Gross profit was $212 million in 2015 (57 per cent of revenue), compared with $153.7 million CAD (57 per cent of revenue) in 2014. As a percentage of revenue, gross margins in Q4 2015 decreased by 2 per cent compared to the same period in 2014 due to costs related to a recently opened US manufacturing facility.
Net income for Q4 2015 decreased 56 per cent year-over-year to $5.7 million CAD, compared with $13 million CAD in Q4 2014 and net income for 2015 decreased 20 per cent year-over-year to $28.3 million CAD, compared with $35.1 million CAD in 2014. The company said net income was impacted by an increase in amortization and depreciation; a foreign exchange loss for Q4 2015 and a smaller foreign exchange gain for 2015 compared to the same periods in the prior year; and interest expense from long-term debt.
As at Dec. 31, 2015, Avigilon had net working capital of $115.8 million, including cash and cash equivalents of $25.8 million CAD.♦