Avigilon reported 2013 revenue of $178.3 million, an increase of 78%, or $78 million, compared to revenue of $100.3 million for 2012. Revenue growth continues to reflect increased product sales volumes worldwide, driven by greater customer adoption in existing markets, further penetration of new target regions and sales of new products introduced during the year. Revenue was strong across all regions, with year-over-year sales growth of between 63% and 98% in all six of the company's target geographic regions.

Gross margin was $96.7 million in 2013 (54% of revenue), compared with $49.4 million (49% of revenue) in 2012. The year-over-year increase in gross margin percentage reflects the ongoing effects of greater purchasing power, economies of scale and improved manufacturing efficiencies. Although the company's gross margin increased over 2012, management does not expect significant gross margin expansion in the near term due to the company's focus on market share gain.

Selling and marketing expenses in 2013 were $41.5 million, a $16.5 million increase compared to $25.0 million in 2012. The increase reflects investments to continue to expand the company's global sales team and brand awareness, which management believes will drive continued revenue growth. The company anticipates that selling expenses will increase as a percentage of revenue in the short term as management continues to execute on its proven strategy for growth.

Net income for 2013 was $21.6 million, up by $14.4 million, compared with net income of $7.2 million in 2012.

"The fourth quarter was our highest revenue quarter to date and contributed to exceptional revenue and earnings growth for 2013," said Alexander Fernandes, founder, president, CEO and chairman of the Board of Avigilon. "These results reflect the impact of the growth investments we made in prior periods to expand our operations, particularly within sales, marketing and product development. The year was also highlighted by two strategic technology acquisitions, which add complementary products and technology to our industry leading, end-to-end HD surveillance solution and allow us to expand our business into other segments of the global security market."

All figures are stated in Canadian dollars unless otherwise noted.