Avigilon Corporation, a provider of trusted security solutions, reports its financial results for the three and six months ended June 30, 2016. All figures are in United States ("US") dollars unless otherwise stated.
Second Quarter 2016 Financial Highlights
- Record revenue of $85.7 million, an increase of 17% over Q2 2015 revenue of $73.0 million, reflecting greater customer adoption in existing markets, further penetration of new target regions, sales of new products, and the Pricing Adjustment.
- Gross profit was up $0.7 million, compared to the same period last year, primarily due to increased sales volume.
- Gross margin percentage was 50%, compared with 58% in Q2 2015, primarily due to the Pricing Adjustment.
- Adjusted EBITDA was $8.0 million, compared with Q2 2015 Adjusted EBITDA of $12.5 million.
- Adjusted Earnings were $2.6 million, compared with Q2 2015 Adjusted Earnings of $5.8 million.
- Diluted Adjusted Earnings Per Share* of $0.06, compared with $0.12 in Q2 2015.
Expansion of addressable market
"We've increased revenue for the 34th consecutive quarter on a year over year basis, captured additional market share and continued to invest for growth," said Alexander Fernandes, Avigilon's Founder, President, Chief Executive Officer and Chairman of the Board. "To expand our addressable market, we reduced prices on our H3 camera line and select NVRs and achieved record overall unit sales and revenue. This adjustment also increased cash flow from operations and benefited gross profit dollars at the expense of gross margin as a percentage of revenue. Over time, we expect gross margin to increase due to greater economies of scale, and growing revenues from patent licensing and video analytics."
"To support long-term growth we continued to invest in every department, notably in sales and marketing, manufacturing capabilities, and research and development. We're advancing our video analytics, such as our recently announced Avigilon Appearance Search technology, and plan to launch several new exciting video analytics-enabled products in the coming weeks."
Second Quarter 2016 Business Highlights
- Announced Avigilon Appearance Search video analytics technology, a sophisticated search engine for video data.
- Avigilon's year over year sales growth outpaced that of the industry.
- Successfully completed the Early Adopter Plan for the Avigilon Patent License Program, adding eight new licensees to the Program.
- Implemented a new enterprise resource planning system to help ensure effective scalability.
