Revenue
4q12 1q13 2q13 3q13 4q13 1q14
32,650 32,027 39,217 51,157 55,943 55,750
Cost of Revenue
4q12 1q13 2q13 3q13 4q13 1q14
16,352 15,678 18,473 24,006 23,456 23,953
Gross Margin
4q12 1q13 2q13 3q13 4q13 1q14
16,298 16,349 20,744 27,151 32,487 31,797
Net Income
4q12 1q13 2q13 3q13 4q13 1q14
3,046 2,798 3,392 8,622 6,744 8,040
EPS (Basic)
4q12 1q13 2q13 3q13 4q13 1q14
.09 .07 .09 .22 .16 .19
Diluted Shares(000's)
4q12 1q13 2q13 3q13 4q13 1q14
39,748 40,551 40,398 41,369 42,673 44,498
Inventories
4q12 1q13 2q13 3q13 4q13 1q14
11,906 13,139 14701 16,660 19,444 32,523
Cash
4q12 1q13 2q13 3q13 4q13 1q14
49,859 50,728 32,105 34209 104,875 60,125
Debt
4q12 1q13 2q13 3q13 4q13 1q14
0 0 0 0 0 0
Cashflow
4q12 1q13 2q13 3q13 4q13 1q14
2143 157 (3,462) 2,083 6342 (11,067)
Subject: Avigilon (Aiocf) Pink Sheets
Author: Buynholdisdead
Date: 07/5/2014
Sector: Technology
Industry: Hardware
Avigilon Corporation (Aiocf) Closing Price $22.83
Dow:17,068.26
Nasdaq:4,485.92
SP500:1985.44
Oil: $104.06
Nat Gas: $4.41
Unleaded Gas: $3.02
Gold: $1320.60
Silver: $21.18
Copper: $3.28
Corn: $415.25
Lean Hogs: $131.60
Feeder Cattle: $217.62
Coffee: $178.70
Cotton: $72.06
Lumber: $338.10
Today the Price is $22.83: The P/E ratio is 36.24
**February 29th, 2012 4Q:2011 earnings highlights:
**Revenues were $18.9 million up 85% from $10.2 million
**TTM Revenues were $60 million up 86% from $32.3 million
**Cost of Revenues were $9.3 million up 69% from $5.5 million
**Gross Profit were $9.6 million up 108% from $4.6 million
**Gross Profit Margin were 51%
**TTM Gross Profit were $27.6 million up 89% from $14.6 million
**TTM Gross Profit Margin were 46%
**Net Income were $1.6 million up from $(216) million
**TTM Net Income were $3.8 million up from $964 thousand
**4Q Earnings per share were $.05 up from $.00
**TTM Earnings per share were $.14 up from $.05
**Diluted share count were 31,021,287 up from 17,248,202 Year over Year
**4Q Cash Flow was ($.8 million) flat from ($.8 million)
**TTM Cash Flow was ( $4.5 million) down from ( $2.1million)
**Cash $12.4 million up from $2.3 million
**Debt 0 down from $1.8 Million
**Inventory for the quarter were 11,254,000 up 47% from 5,307,000 YoY
** To date, Avigilon systems have been installed at over 12,000 customer sites in more than 80 countries, including school campuses, transportation systems, healthcare centres, public venues, critical infrastructure, prisons, factories, casinos, airports, financial institutions, government facilities and retailers.
**Company IPO’D November 8th 2011 and traded on Toronto exchange under symbol AVO
**May 10th, 2012 1Q:2012 earnings highlights:
**Revenues were $17.8 million up 78% from $10 million
**TTM Revenues were $67.8 million up 84% from $36.8 million
**Cost of Revenues were $9.3 million up 66% from $5.6 million
**Gross Profit were $8.5 million up 93% from $4.4 million
**Gross Profit Margin were 48%
**TTM Gross Profit were $31.6 million up 93% from $16.4 million
**TTM Gross Profit Margin were 47%
**Net Income were $647 thousand up from $121 thousand
**1Q Earnings per share were $.02 up from $.01
**TTM Earnings per share were $.15 up 150% from $.06
**Diluted share count were 34,832,000 up from 31,021,287 Quarter over Quarter
**Cash Flow for the quarter was ( $3 million) down from ($2.7million)
**Cash $9.5 million down from $12.4 million
**Debt 0
**Inventory for the quarter were 13,390,000 up from 11,254,000
**On March 26, 2012, at ISC West 2012, we launched our next generation H.264 camera technology, the H3 platform with enhanced High-Definition Stream Management. Starting with our new 3MP and 5MP cameras, H3 provides a number of benefits, including requiring four times less bandwidth in challenging lighting conditions than previous H.264 versions. The 3MP and 5MP cameras on the H3 platform will start shipping in May, 2012.
**The H3 platform was expanded on May 8, 2012 with the release of our new high-definition Pan-Tilt-Zoom (“PTZ”) camera available in 1MP or 2 MP resolutions. The indoor and outdoor pendant PTZ cameras provide precise positioning and predictable high-speed tracking, and are targeted specifically at expansive areas with manned operations, such as large retail chains, airports, petrochemical, casinos, and city surveillance, among others. The PTZ cameras also feature a custom-designed HD bubble made specifically for high-definition video
**August 8th, 2012 2Q:2012 earnings highlights:
**Revenues were $24.4 million up 52% from $16 million
**TTM Revenues were $76.2 million up 71% from $44.5 million
**Cost of Revenues were $12.7 million up 35% from $9.4 million
**Gross Profit were $11.7 million up from $6.7 million
**Gross Profit Margin were 48%
**TTM Gross Profit were $36.6 million up 89% from $19.4 million
**TTM Gross Profit Margin were 48%
**Net Income were $1.3 million up 18% from $1.1 million
**2Q Earnings per share were $.04 flat from $.04
**TTM Earnings per share were $.15 up 88% from $.08
**Diluted share count were 35,040,000 up from 34,832,000 Quarter over Quarter
**Cash Flow for the quarter was $2.6 million up from ($2.5) million
**Cash $12.4 million up from $9.5 million
**Debt 0
**Inventory for the quarter were 9,755,000 down from 13,390,000
**November 7th 3Q:2012 earnings highlights:
**Revenues were $25.5 million up 69% from $15.1 million
**TTM Revenues were $86.6 million up 69% from $51.3 million
**Cost of Revenues were $12.5 million up 51% from $8.3 million
**Gross Profit were $13 million up 88% from $6.9 million
**Gross Profit Margin were 51%
**TTM Gross Profit were $42.7 million up 88% from $22.6 million
**TTM Gross Profit Margin were 49%
**Net Income were $2.2 million up 120% from $1 million
**3Q Earnings per share were $.06 up 50% from $.04
**TTM Earnings per share were $.17 up 89% from $.09
**Diluted share count were 36,436,000 up from 35,040,000 Quarter over Quarter
**Cash Flow for the quarter was $8 million up from $1.5 million
**TTM cash flow was $6.8 million up from ($4.4 million)
**Cash $45.6 million up from 12.4 million
**Debt 0
**Inventory for the quarter were 9,515,000 down from 9,755,000
**Trading range between $7.02 to $9.96
**P/E range 41.29 to 58.59
**P/S range 2.95 to 4.19
**On August 31, 2012, we started shipping our first high-definition Pan-Tilt-Zoom (“PTZ”) camera. The indoor and outdoor pendant PTZ cameras available in 1MP or 2MP resolutions, provide precise positioning and predictable high-speed tracking, and are targeted specifically at expansive areas with manned operations, such as large retail chains, airports, petrochemical, casinos, and city surveillance, among others. The PTZ cameras also feature a custom-designed HD bubble made specifically for high-definition video. The release of the PTZ did not materially add to our revenues in Q3 however we expect its contribution to grow in the future. The global PTZ market is estimated to be worth over $1.3 billion USD and the network PTZ form factor is forecast to be one of the fastest growing security camera types towards 2016. Growth in excess of 25% year-on-year is projected for this category globally.
**February 28th 2013, 4Q:2012 earnings highlights:
**Revenues were $32.7 million up 73% from $18.9 million
**TTM Revenues were $100.3 million up 67% from $60 million
**Cost of Revenues were $16.4 million up 76% from $9.3 million
**Gross Profit were $16.3 million up 72% from $9.5 million
**Gross Profit Margin were 50%
**TTM Gross Profit were $49.4 million up 81% from $27.5 million
**TTM Gross Profit Margin were 49%
**Net Income were $3.1 million up 94% from $1.6 million
**Net Margin were 9%
**4Q Earnings per share were $.08 up 60% from $.05
**TTM Earnings per share were $.20 up 43% from $.14
**Diluted share count were 35,223,000 down from 36,436,000 Quarter over Quarter
**Cash Flow for the quarter was $2.5 million up from ($1.1 million)
**TTM cash flow was $10.1 million up from ($4.7 million)
**Cash $49.9 million up from 45.6 million QoQ
**Debt 0
**Inventory for the quarter were 11,906,000 up from 9,515,000
**Trading range between $10.60 to $12.26
**P/E range 53 to 61.3
**P/S range 3.72 to 4.31
**The security surveillance market is large and growing rapidly. The worldwide video surveillance systems market, which includes cameras, video management software, storage hardware, analog video encoders and related equipment, but excludes installation costs, is estimated to have been between US$11 billion and US$16 billion in 2011, and is projected to increase to between US$21 billion and US$29 billion by 2015/20161. This is partly due to growth in customer adoption of new high-definition video surveillance systems. The security video surveillance market today is fragmented, with no one producer commanding a dominant share of the market. According to IMS research in their report “The World Market for CCTV and Video Surveillance Equipment – 2012 Edition”, the 15 largest suppliers of video surveillance equipment accounted for only 43.5% of the market in 2011, and no company had more than a 5.9% share.
**May 9th, 1Q:2013 earnings highlights:
**Revenues were $32 million up 80.4 % from $17.8 million
**TTM Revenues were $114.5 million up 69% from $67.8 million
**Cost of Revenues were $15.7 million up 69.3% from $9.3 million
**Gross Profit were $16.3 million up 92.5% from $8.5 million
**Gross Profit Margin were 51%
**TTM Gross Profit were $57.3 million up 81% from $31.6 million
**TTM Gross Profit Margin were 50%
**Net Income were $2,798 million up 332.5% from $647,000
**1Q Earnings per share were $.07 up 250% from $.02
**TTM Earnings per share were $.25 up 67% from $.15
**Diluted share count were 40,551,000 up 15% from 35,223,000 Quarter over Quarter
**Cash Flow for the quarter was $157 thousand up from ($3 million)
**Cash $50.7 million up from $49.9 million
**Debt 0
**Inventory for the quarter were 13,139,000 up 10% from 11,906,000
**Trading range $10.77 to $14.08
**P/E range 43.08 to 56.32
**P/S range 3.81 to 4.99
**The first quarter of 2013 also saw key additions to our Executive Team. In January we hired a Vice President of Engineering to accelerate the growth of research and development and successfully execute on our product roadmap. In February we appointed an Executive Vice President of Global Operations to support the ongoing operation of all departments and facilities worldwide. Finally, we promoted our Vice President of Marketing and Communications to Executive Vice President – Marketing, Communications and Product Strategy With these key changes, we believe that we have the executive team in place to support our goal of growing the company into one of the largest players in the surveillance industry.
**On the innovation front, we also continued to release new products during the quarter. Our new HD Bullet Camera, which we announced at the end of last year, began shipping in January and initial demand has exceeded our expectations. The Bullet Camera includes built-in adaptive Infrared (IR) technology, our patent- pending technology that provides the industry’s most effective and flexible way to capture evidence without a visible light source. The adaptive IR technology is able to intelligently change IR lighting levels based on the scene while reducing motion blur and ignoring areas where there is no movement. This allows the beam of IR illuminators to focus only on the relevant content within the scene and ensures IR illumination is not wasted on irrelevant content. At the end of the quarter we announced that our Adaptive IR technology will be added to our indoor and outdoor H.264 HD Dome cameras, with shipments beginning in April 2013.
**August 8th, 2Q:2013 earnings highlights:
**Revenues were $39.2 million up 61% from $24.4 million
**TTM Revenues were $129.4 million up 70% from $76.1 million
**Cost of Revenues were $18.5 million up 46% from $12.7 million
**Gross Profit were $20.7 million up 77% from $11.7 million
**Gross Profit Margin were 53%
**TTM Gross Profit were $66.4 million up 82% from $36.5 million
**TTM Gross Profit Margin were 51%
**Net Income were $3.4 million up 162% from $1.3 million
**2q Earnings per share were $.08 up 100% from $.04
**TTM Earnings per share were $.29 up 93% from $.15
**Diluted share count were 40,399,000 down from 40,551,000 Quarter over Quarter
**Cash Flow for the quarter was ($3.5 million) down from $2.6 million
**Cash $32.1 million down from $50.7 million
**Debt 0
**Inventory for the quarter were 14,701,000 up 12% from 13,139,000
**Trading range between $14.84 to $18.07
**P/E range 39.55 to 62.31
**P/S range 1.51 to 5.64
**In the first half of 2013, Avigilon was honoured with the No. 1 ranking in PROFIT magazine’s 25th annual PROFIT 500 ranking of Canada’s fastest-growing companies. The PROFIT 500 ranks Canadian businesses by their revenue growth over five years. Avigilon’s five-year revenue growth of 49,908% put us at the top of the list. We anticipate our growth to continue as we execute on our mid-term goal to achieve a $500 million revenue run-rate by the end of 2016.
**While our main focus is to grow the business organically, we will also look at opportunistic acquisitions that fit our long term criteria. In May 2013 we acquired RedCloud Security Inc., an innovative provider of web-based, physical and virtual access control systems. Through the acquisition, Avigilon adds a complementary product line to its end-to-end high-definition surveillance solution and provides the Company with access to a growing segment of the global security market. Avigilon paid USD$17.3 million in cash to purchase the entire RedCloud business. The Company expects the acquisition to be neutral to 2013 earnings and accretive to 2014 earnings.
**During the second quarter, Keith Marett was promoted to Executive Vice President of Marketing, Communications and Product Strategy. Mr. Marett has been instrumental in building Avigilon’s global brand; his newly expanded position includes overseeing the product management team in addition to our global marketing and communications program.
On the innovation front, we continued to release new products during the second quarter of 2013:
**Version 5.0 of our Avigilon Control Centre (ACC) VMS, which we announced at the end of 2012, began shipping to customers on June 28, 2013. ACC was re-engineered to be easier to use, with an improved system explorer, simplified software functions and increased video viewing area for better image quality. ACC 5.0 is the industry’s first video management software to introduce collaborative investigations in real-time.
**We announced our new HD micro dome camera, the world’s smallest HD dome camera. Slightly larger than a golf ball, the micro dome camera is a discreet camera with a patent-pending cable design that incorporates the camera’s intelligence into the smart cable.
**We also released our in-ceiling HD Pan-Tilt-Zoom (PTZ) camera. The in-ceiling PTZ has a patent- pending mounting technology using spring-loaded mechanisms that dramatically reduces installation time. The camera requires only a few minutes to install, as no screws are required, and provides ease of customization as a result of the removable dome bubble.
**We added adaptive infrared technology to our indoor and outdoor H.264 HD dome cameras, which provides the industry’s most effective and flexible method to capture evidence without a visible light source. The patent-pending technology is able to intelligently change infrared lighting levels based on the scene while reducing motion blur and ignoring areas where there is no movement.
**November 5th, 3Q:2013 earnings highlights:
**Revenues were $51.2 million up 101% from $25.5 million
**TTM Revenues were $155.1 million up 79% from $86.6 million
**Cost of Revenues were $24 million up 92% from $12.5 million
**Gross Profit were $27.2 million up 109% from $13 million
**Gross Profit Margin were 53%
**TTM Gross Profit were $80.5 million up 89% from $42.7 million
**TTM Gross Profit Margin were 52%
**Net Income were $8.6 million up 291% from $2.2 million
**3q Earnings per share were $.21 up 250% from $.06
**TTM Earnings per share were $.44 up 159% from $.17
**Diluted share count were 41,370,000 up from 40,399,000 Quarter over Quarter
**Cash Flow for the quarter was $2.1 million down 74% from $8 million
**Cash $34.2 million up from $32.1 million QoQ
**Debt 0
**Inventory for the quarter were 16,660,000 up 13% from 14,701,000
**Trading range between $14.63 to $20.08
**P/E range 33.25 to 45.64
**P/S range 3.90 to 12.17
** We introduced the LightCatcherTM technology to our camera line-up, and demonstrated it at the ASIS 2013 International conference in Chicago in September 2013. This innovative technology provides the industry’s most effective way to capture evidentiary color detail in extreme low-light environments. By increasing the amount of light and detail captured via the camera and decreasing the noise in the image, LightCatcher technology produces significantly more detail in colour from a low-light scene than any other technology. This combination results in the ability to identify objects of interest more effectively. This new technology helps identify objects of interest more successfully in challenging lighting situations, such as restaurants, bars, hotels, parking lots and alleys.
**We started full shipment of our Avigilon Control Center 5.0 (“ACC 5.0”) video management software in June 2013 and to date it has been well received by the market. This release has been responsible for an increase during the quarter in the percentage of our sales coming from software. ACC was re- engineered to be easier to use, with an improved system explorer, simplified software functions and increased video viewing area for better image quality. ACC 5.0 is the industry’s first video management software to introduce collaborative investigations in real-time.
**We started full shipment of our HD Micro Dome camera in August 2013, we’ve had a high amount of interest and a large number of orders shipped. The HD Micro Dome camera is available in 1 and 2 megapixel and is the world’s smallest HD dome camera as a result of building the camera’s intelligence into the smart cable.
**March 4th, 4Q: 2013 earnings highlights:
**Revenues were $55.9 million up 71% from $32.7 million
**TTM Revenues were $178.3 million up 78% from $100.3 million
**Cost of Revenues were $23.5 million up 43% from $16.4 million
**Gross Profit were $32.5 million up 99% from $16.3 million
**Gross Profit Margin were 58%
**TTM Gross Profit were $96.7 million up 96% from $49.4 million
**TTM Gross Profit Margin were 54%
**Net Income were $6.7 million up 123% from $3 million
**4Q Earnings per share were $.16 up 100% from $.08
**TTM Earnings per share were $.53 up 165% from $.20
**Diluted share count were 40,709,000 down from 41,370,000 Quarter over Quarter
**Cash Flow for the quarter was $6.7 million down 168% from $2.5 million
**Cash $105 million up from $34.2 million QoQ
**Debt 0
**Inventory for the quarter were 19,444,000 up 17% from 16,660,000
**Trading range between $25.99 to $31.00
**P/E range 49.03 to 58.49
**P/S range 5.93 to 7.08
**On November 26, 2013, Avigilon issued 2,863,270 common shares, on a bought deal basis, for gross proceeds of approximately $69.0 million. These additional funds will be used for general corporate purposes and for potential strategic acquisitions, part of which were used for the acquisition of VideoIQ.
**Avigilon also was added to the S&P/TSX composite index effective December 20, 2013. Our inclusion in the index is expected to increase Avigilon’s exposure to a broader range of potential investors and provide for enhanced liquidity for our shares.
**May 7th, 1Q: 2014 earnings highlights:
**Revenues were $55.8 million up 74% from $32.0 million
**TTM Revenues were $202.1 million up 77% from $114.5 million
**Cost of Revenues were $24 million up 53% from $15.7 million
**Gross Profit were $31.8 million up 95% from $16.3 million
**Gross Profit Margin were 57%
**TTM Gross Profit were $112.2 million up 96% from $57.3 million
**TTM Gross Profit Margin were 56%
**Net Income were $8 million up 186% from $2.8 million
**1Q Earnings per share were $.18 up 157% from $.07
**TTM Earnings per share were $.63 up 66% from $.38
**Diluted share count were 44,498,000 up from 40,709,000 Quarter over Quarter
**Cash Flow for the quarter was ($11.1) million down from $157 thousand
**Cash $60.1 million down from $105 million QoQ
**Debt 0
**Inventory for the quarter were 32,523,000 up 67% from 19,444,000
**Trading range between $18.59 to $29.94
**P/E range 29.50 to 47.52
**P/S range 4.09 to 6.59
**On December 30, 2013, Avigilon signed a definitive agreement to acquire VideoIQ, Inc. (“VideoIQ”), a leading video analytics company. VideoIQ’s proprietary technology includes live detection, event verification and instant notification and self-learning capabilities. The transaction, which closed on January 13, 2014, provides us with a commercially proven analytics technology, a leading analytics development team and a strong portfolio of video analytics intellectual property, including 40 patents granted or pending internationally. The results of the first quarter of 2014 include the results of VideoIQ from January 13 to March 31, 2014.
**In January we launched our next generation HD Pro series of cameras. Available in 8MP, 12MP and 16MP resolutions, the HD Pro camera provides exceptional low-light performance and smooth capturing of moving objects due to its increased frame rates. The new HD Pro series is engineered using H.264 compression and our next generation H4 platform. HD Pro series cameras were demonstrated at the Intersec 2014 tradeshow in Dubai and it is anticipated that they will begin shipping in Q2 2014.
**The image quality of the HD Pro camera series is made possible by Avigilon’s new H4 platform, with the latest edition of Avigilon’s proprietary HDSM technology, HDSM 2.0. HDSM 2.0 was developed to operate with the H.264 compression standard, simultaneously providing users with high-resolution imaging performance, further bitrate reduction of H.264 and the intelligence and flexibility of HDSM. This technology pairing provides a unique and superior network performance over systems solely utilizing H.264 compression, allowing for greater processing power, increased frame rate, improved image quality and smarter bandwidth and storage management. The result is high quality, detailed images with minimal network impact.
**In March we introduced ACM 5.0 to our innovative and expanding product portfolio. The addition of ACM 5.0 marks the completion of the operational integration of RedCloud Security, Inc. (“RedCloud”), acquired by Avigilon in May 2013. Easy to use, ACM 5.0 achieves a high level of scalability and flexibility, enabling the system to grow with organizational needs. Built on an open architecture, the secure, web-based technology allows organizations to effectively manage security across multiple sites from any location around the world, enabling organizations to conveniently manage access to facilities from a single platform. To simplify deployment and management of permissions, ACM seamlessly integrates with Active Directory, many HR databases and any other IT and logical security systems.
**At ISC West in April 2014 we launched ACC 5.2. With ACC 5.2, organizations can seamlessly migrate from ACC 4.12 or earlier versions of ACC 5.0 and keep large and distributed locations more secure with the following new features: o the cross-site user and groups feature enables system administrators to designate security permissions to multiple sites at once, greatly increasing the integrity, speed and efficiency of their system deployment; o private bookmarks enable system administrators to designate footage as confidential so they can help maintain confidentiality of sensitive material; o alarm escalation allows organizations to set time-sensitive alerts according to priority, ensuring that alerts are addressed and appropriately escalated; and o the Pick Site-View Location feature increases system set-up speed to allow new items to be added with the appropriate permissions in a designated location.
Revenue by Geographic Region Three months ended March 31 March 31 %
($ 000's) 2014 2013 Growth
Canada 4,111 2,811 46%
United States 28,363 16,932 68%
United Kingdom 4,703 2,576 83%
EMEA 13,143 7,175 83%
Asia Pacific 3,224 1,510 114%
Latin America 2,206 1,023 116%
Total revenues 55,750 32,027 74%
1Q 2014 Conference call
Brad Bardeau was the cfo and is now gone. Brad Bardeau had health problems and the new cfo will be Wan Jung. Wan Jung was the first cfo and one of the original founders. He is currently on the board of directors. Quarterly sales now equal the total sales in 2011 when they went public. On March 17th, 2014 the company issued 3.5 million shares at $29 dollars per share for gross proceeds of 100 million dollars in case they want to make some strategic acquisitions.
Wan Jung the Cfo stated that sales costs are going up because they are ramping up their sales crew.
This is one of the fastest growing companies in the industry. They have been saying that they will hit a 500 million run rate by 2016 and the CEO thinks they will beat that.
They have doubled the development team in the last year. Inventory is up substantially to over 10 million from last quarter. The CEO states that it is a replenishment of Q4 which is one of the better quarters. Quarter 2 and quarter 4 are the highest growth quarters. The CEO is very excited about the video analytics acquisition that they have recently made.
Avigilon Investor Presentation July 2014
In 2012 the market was 12.6 billion and by 2016 they expect the market will be 23.2 billion. The market for Analog cameras has been flat and they expect it to stay that way in the future. While Digital cameras are growing. They make all of their equipment in Richmond, B.C., Canada. The Key benefits they see versus off shore manufacturing are higher quality control, innovations brought to the market faster, and more secure protection of Intellectual property.
Their 2014 goals are to expand sales reach, build brand awareness, and accelerate innovations.
Board of Directors
ALEXANDER FERNANDES Chairman Founder, President & CEO, Avigilon
LARRY BERG Former President & CEO, Vancouver Airport Authority
HARRY JAAKO President, Discovery Capital Management Corp Director, TMX Group
WAN JUNG Interim Avigilon CFO
BRUCE MARGINSON Founder & President, Fusion Security Inc.
MURRAY TEVLIN Founding Partner, TevlinGleadle Employment Law Strategies
Conclusion:
This company is growing very fast and with a market of 23.2 billion by 2016 I think they will continue to grow. They are building out their sales team to continue their growth plans. With Revenue up 74% QoQ and 77% YoY they are a high growth company. Their Gross Profits are up 95% QoQ and 96% YoY. Their Net Income was up an amazing 186% QoQ and their EPS was up 157%. The one thing that brings up a red flag is their inventory and Free Cash flow. Their inventory has been going up the last 6 quarters. I can imagine that it would be hard to know exactly how much inventory you would need when you are growing this fast. Although this quarter it was up a whopping 67%, which would make any investor nervous, the CEO states that they needed to ramp up inventory because they needed to ramp up after the sell off of product in Q4. If you remember Q2 and Q4 are their biggest quarters so we should see revenues keep growing fast with this much inventory. As far as Cash Flow goes they have made a couple of recent acquisitions which has caused their cash flow to go negative and their cash on hand to go down. But with the recent equity offering where they were able to raise 100 million dollars they should be able to acquire more companies without hurting their financials. This company plans on growing with strategic acquisitions and organic growth. They dropped recently because people were nervous because of all the turnover in upper management. The CfO left because of health reasons but there was no word why the others left. Whether it was greener pastures or friction at the top I think it doesn’t matter. Because after these people left it still didn’t hurt the growth of this company. This is a very easy company to understand and is one of my highest conviction stocks. The symbol is AIOCF on Over the counter or AVO on the Toronto stock exchange.
Any questions or criticism will be extremely helpful.
Andy
Long Aiocf
I also saw ubnt focused on smb, but the above link shows them making a professional pitch to enterprise.