Revenue and EBITDA grew in 2015 for Avigilon Corp., but the company experienced declines in net income.
Reporting its financial results for the three and twelve months ended December 31, 2015, Avigilon noted that revenue for Q4 2015 was $109.1 million, an increase of 37 per cent over Q4 2014 revenue of $79.5 million. Adjusted EBITDA for the same period was $20.8 million, a 21 per cent increase over Q4 2014 adjusted EBITDA of $17.2 million.
For the full year 2015, Avigilon’s revenue was $369.4 million, an increase of 36 per cent over 2014 revenue of $271.4 million. Adjusted EBITDA was $66.3 million, a 22 per cent increase over 2014 adjusted EBITDA of $54.3 million.
“We’re pleased to report record-setting financial results for our 2015 fourth quarter and year,” said Alexander Fernandes, Avigilon’s founder, president, CEO and chairman of the board. “We’re very proud of our financial performance, and look forward to setting new records in 2016.”
Revenue growth for both Q4 and the full year 2015 reflects increased product sales worldwide, driven by greater customer adoption in existing markets, further penetration of new target regions and sales of new products, the company states. In 2015, revenue was strong across all regions, with year-over-year sales growth between 2 per cent and 49 per cent in all six of the company’s target geographic regions.
Net income for Q4 2015 decreased 56 per cent year-over-year to $5.7 million, compared with $13.0 million in Q4 2014. Net income for 2015 decreased 20 per cent year-over-year to $28.3 million, compared with $35.1 million in 2014. Avigilon states that net income for Q4 2015 and for 2015 was impacted by: an increase in amortization and depreciation; a foreign exchange loss for Q4 2015 and a smaller foreign exchange gain for 2015 compared to the same periods in the prior year; and interest expense from long-term debt.
Avigilon’s gross R&D spend was $31.5 million in 2015, compared with $24.7 million in 2014 an increase of 28 per cent. The increase in R&D spend is consistent with the company’s ongoing plan to further enhance and expand upon its product offerings.
The security solutions company is expecting revenue between USD$335 million and USD$365 million for 2016.