SecurityWorldMarket

09/03/2015

Avigilon chases revenue of $500M

Vancouver, Canada

Avigilon has released its 2014 year end result and reports a Q4 2014 revenue of $79.5 million, an increase of 42% over revenue of $55.9 million in Q4 2013. A total revenue for 2014 of $271.4 million represents an increase of 52%, or $93.1 million, compared with revenue of $178.3 million in 2013.

According to Avigilon, revenue growth for both Q4 and the full year 2014 reflects increased product sales worldwide, driven by greater customer adoption in existing markets, further penetration of new target regions and sales of new products. In 2014, revenue was strong across all regions, with year-over-year sales growth between 20% and 77% in all six of the Company's target geographic regions.

"Avigilon continues to report strong growth as we execute our plan towards being the market leader in end-to-end security solutions," said Alexander Fernandes, Avigilon's founder, president, CEO and chairman of the Board. "We are pleased to report record revenue, Adjusted EBTIDA, and Adjusted Earnings for both the quarter and year. With our strategic investments in video analytics, we are pushing innovation in our industry to drive ongoing success. We continue to make substantial investments in the business, with an eye on profitability, as we track towards our goal of $500 million in annual run-rate revenue by the end of 2016."

As at December 31, 2014, Avigilon had working capital of $132.3 million, including cash and cash equivalents of $73.1 million. The weighted average number of common shares issued and outstanding for the year was 45.6 million basic and 46.4 million diluted. The Company's primary use of cash-on-hand in 2014 was for its acquisition of the entire patent portfolio and the patent licensing program of Objectvideo, Inc. for total cash consideration of USD$80.3 million. Avigilon completed the acquisition on December 17, 2014.

According to the statement, Avigilon plans to continue executing on its successful strategy of delivering strong year-over-year revenue growth while maintaining growth in profit. The Company believes market share consolidation across the industry will continue and the Company remains on track towards an annual revenue run rate goal of $500 million by the end of 2016. To achieve this growth, Avigilon plans to invest globally in all departments of the Company, and expects operating expense as a percentage of revenue to increase modestly in 2015, as it did in 2014.



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