Avigilon Releases Q2 Earnings Results, Misses Expectations by 2 Cents

The video surveillance specialist reported quarterly revenue increased 38% year-over-year while net income sagged 19% during the same period.

VANCOUVER, B.C., Canada – Avigilon Corp. (TSE: AVO) announced 15 cents per share quarterly earnings on Wednesday (July 30), missing the consensus estimate of 17 cents by 2 cents.

The company said its revenue was $89.8 million, a 38% increase over Q2 2014 revenue of $65.2 million. The quarterly revenue gains were attributed to increased product sales driven by greater customer adoption in existing markets, further penetration of new target regions and sales of new products.

Year-over-year quarterly revenue in the United States grew 54%; EMEA, 31%; Latin America, 23%; Asia Pacific, 16%; and revenue in the United Kingdom and Canada declined 4% and 1%, respectively. Gross margin was 58%, up from 55% a year earlier. Adjusted EBITDA was $15.4 million, a 68% increase over the same period last year of $9.2 million.

Net income for the second quarter decreased 19% year-over-year to $2.3 million, compared with $2.8 million in the same period last year. The company said its net income for the second quarter was negatively impacted by a foreign exchange loss of $2.8 million, $3.4 million in business acquisition-related and non-recurring legal expenses, among other charges.

“In the second quarter, Avigilon set a new record for revenue as we executed on our proven growth strategy,” says Alexander Fernandes, Avigilon’s Founder, president, CEO and Chairman of the Board. “We remain committed to investing in the business to drive ongoing growth and are well on track to achieve our stated goal of $500 million in annual run-rate revenue by the end of 2016.”

Avigilon manufactures high-definition (HD) and megapixel network-based video surveillance systems and equipment for the global security market.

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