Avigilon Corp. of Vancouver reported record revenue of US$85.7 million for the second quarter of 2016, an increase of 17 per cent over Q2 2015 revenue of US$73.0 million. The higher revenue reflects greater customer adoption in existing markets, further penetration of new target regions, sales of new products, and a pricing adjustment.
Gross profit was up US$0.7 million compared to the same period last year, primarily due to increased sales volume. Gross margin percentage was 50 per cent, compared with 58 per cent in Q2 2015, primarily due to the pricing adjustment.
“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, CEO 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,” Fernandes explained.
Avigilon reported adjusted EBITDA of US$8.0 million, compared with Q2 2015 adjusted EBITDA of US$12.5 million. Adjusted earnings were US$2.6 million, compared with Q2 2015 adjusted earnings of US$5.8 million.
Fernandes also noted that Avigilon continues “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.”