In Canadian Dollars
Revenue
4q12 1q13 2q13 3q13 4q13 1q14 2q14
32,650 32,027 39,217 51,157 55,943 55,750 65,181
Cost of Revenue
4q12 1q13 2q13 3q13 4q13 1q14 2q14
16,352 15,678 18,473 24,006 23,456 23,953 29,137
Gross Margin
4q12 1q13 2q13 3q13 4q13 1q14 2q14
16,298 16,349 20,744 27,151 32,487 31,797 36,044
Net Income
4q12 1q13 2q13 3q13 4q13 1q14 2q14
3,046 2,798 3,392 8,622 6,744 8,040 2,779
EPS (Basic)
4q12 1q13 2q13 3q13 4q13 1q14 2q14
.09 .07 .09 .22 .16 .19 .06
Diluted Shares(000's)
4q12 1q13 2q13 3q13 4q13 1q14 2q14
39,748 40,551 40,398 41,369 42,673 44,498 47,042
Inventories
4q12 1q13 2q13 3q13 4q13 1q14 2q14
11,906 13,139 14701 16,660 19,444 32,523 32,066
Cash
4q12 1q13 2q13 3q13 4q13 1q14 2q14
49,859 50,728 32,105 34209 104,875 60,125 156,732
Debt
4q12 1q13 2q13 3q13 4q13 1q14 2q14
0 0 0 0 0 0 0
Cashflow
4q12 1q13 2q13 3q13 4q13 1q14 2q14
2143 157 (3,462) 2,083 6342 (11,067) 3,658
Subject: Avigilon (Aiocf) Pink Sheets
Author: Buynholdisdead
Date: 10/5/2014
Sector: Technology
Industry: Hardware
Avigilon Corporation (Aiocf) Closing Price $14.90
Dow:17,009.69
Nasdaq:4,475.62
SP500:1967.90
Oil: $89.74
Nat Gas: $4.04
Unleaded Gas: $2.38
Gold: $1192.90
Silver: $16.83
Copper: $3.00
Corn: $323.25
Lean Hogs: $93.02
Feeder Cattle: $240.98
Coffee: $210.30
Cotton: $62.50
Lumber: $349.20
Today the Price is $14.90: The P/E ratio is 24.43
**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
**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
**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
**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
**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
**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
**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
**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
**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 152% from $.25
**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
**Aug 7th, 2Q: 2014 earnings highlights:
**Revenues were $65.2 million up 66% from $39.2 million
**TTM Revenues were $228 million up 76% from $129.4 million
**Cost of Revenues were $29.1 million up 57% from $18.5 million
**Gross Profit were $36 million up 74% from $20.7 million
**Gross Profit Margin were 55%
**TTM Gross Profit were $127.5 million up 92% from $66.3 million
**TTM Gross Profit Margin were 56%
**Net Income were $2.8 million down 18% from $3.4 million
**2Q Earnings per share were $.06 down 25% from $.08
**TTM Earnings per share were $.61 up 110% from $.29
**Diluted share count were 47,042,000 up 6% from 44,498,000 Quarter over Quarter
**Cash Flow for the quarter was $3.7 million up from ($3.5 million)
**Cash $156.7 million up from $60.1 million QoQ
**Debt 0
**Inventory for the quarter were 32,066,000 down from 32,523,000 QoQ
**Share based compensation 1%
**Trading range between $16.47 to $23.95
**P/E range 27 to 39.3
**P/S range 3.40 to 4.94
Revenue by Geographic Region Three months ended March 31 March 31 %
($ 000's) 2014 2013 Growth
Canada 4,244 3,563 19%
United States 35,038 18,187 93%
United Kingdom 4,514 2,553 77%
EMEA 14,783 11,133 33%
Asia Pacific 4,777 2,145 123%
Latin America 1,825 1,636 12%
Total revenues 65,181 39,217 66%
** We obtained Guobiao regulatory certification for certain of our products in China, allowing us to submit proposals for certain government and large private projects requiring security solutions;
**At the end of the second quarter of 2014, twenty-two patents have been issued to Avigilon and its subsidiaries for both design and utility applications;
** 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. Avigilon developed HDSM 2.0 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;
**ACC 5.2 was introduced in Las Vegas, USA at the ISC West 2014 trade show in April. As described in our MD&A for the first quarter of 2014, large organizations can keep distributed locations safe with features including cross-site groups, private bookmarking, alarm escalation and pick site-view location;
** In May, we announced the addition of the Rialto video analytics product family to our portfolio. Following Avigilon’s acquisition of VideoIQ, this release marked the introduction of industry-leading video analytics to Avigilon’s end-to-end security solution. The patented Rialto technology, when combined with high-definition video imaging, provides end-users with superior perimeter surveillance to help protect property, assets and personnel. The flexibility and ease of installation offers a cost- effective way for companies and end-users to integrate video analytics into their current analog or IP video surveillance system. The “Teach-by-Example” functionality of the Rialto family of products enables them to learn from end-user feedback in respect of the accuracy of alarms, increasing future accuracy and resulting in one of the lowest false alarm rates in the industry. This learning technology provides enhanced levels of protection, particularly suited for environments that require perimeter and intrusion security, such as critical infrastructure and commercial installations;
**In July, we released ACC 5.2.2, adding support for Rialto video analytics. ACC 5.2.2 now combines Rialto’s real-time event detection and verification capabilities with the award-winning performance of ACC
** At the IFSEC 2014 trade show in London, England, we announced the broadening of our access control portfolio with the launch of ACM 5.2. One of the most open and scalable access control products in the security industry, ACM 5.2 provides an IT-friendly solution for organizations of all sizes. This latest version extends the reach of Avigilon’s access control offering with a wider range of applications and enhancements that includes the introduction of the ACM Professional appliance. ACM Professional supports access control installations of up to 32 door reader licenses, to address the physical security needs of small to medium-sized sites. ACM 5.2 also features a strengthened integration with the ACC, deepening Avigilon’s end-to-end offering and enabling end-users to create a comprehensive Avigilon security solution. Users of ACM and ACC can seamlessly monitor both video and access control events and alarms through a single platform, enabling quicker response times and more efficient management of building security; and
** Also in June, our HD Micro Dome 1MP and 2MP cameras were made available with an in-ceiling mount. The industry’s smallest HD security camera, the Micro Dome cameras provide a cost-effective and easy transition into HD video surveillance.
Income Statement
This company is having phenomenal growth, its Revenue grew by 66% this quarter over last year. Its cost of sales was up 57% and it sits at 45% of revenue down from 47% last year. Their operating expenses are going up from 42% to 46% this quarter. They are still bringing on more sales staff to grow the business. They need to bring on more people so that they can grow their business. The CEO Mr. Fernandes says he plans on having approximately 900 employees at the end of the year. At this time they have approximately 586. They are not just looking for any employee though, they are looking for A players and B players that can become A players. Their Net Income took a hit this quarter due to the Foreign Exchange Loss. Canada has a stronger dollar and this caused a 2 million dollar loss which hit their EPS and Net Income.
Balance Sheet
Their Balance sheet improved dramatically, 160% QoQ, and they still have no debt. Their Inventory also went down a little. The CEO stated on the Conference Call that they use their inventory as a competitive edge. They call their Distributors Integrators. Well the Integrators do not hold any inventory, or very little, which allows them little risk. It is Avigilon that holds the inventory. CEO Fernandes says that they are able to provide the product with little turnaround so it helps them with their distributors. So the inventory will need to be watched because if Avigilon can’t sell their product we could see a big inventory increase.
Cash Flow
They were Free Cash Flow positive this quarter. Last years quarter they were negative. I also like that their share based compensation sits at 1%. This shows me that you can run a very successful company without throwing your shareholders down the well. I look forward to watching this company for many years.
Thanks to SeekingAlpha for their transcripts
2Q 2014 Conference call
Since they are building out their sales team I thought this was one of the more important statements on the conference call.
Alexander Fernandes
Yes, no I understand what you are referring to. So just to maybe rephrase the question for the other listener sake. So I think what you are referring to is our initial approach was really a geographic approach to generating sales. And what we’ve done more recently on top of our geographic strategy is we’ve created a new department within the sales team which is our business development and their mandate is to pursue enterprise level deals.
So to kind of give more color on that. So the geographic sales team which is the bulk of our sales team is really targeting primarily not exclusively, but primarily what we call a small and medium size system. So anywhere from a single camera, single software license up to lets a 100 cameras, 100 software licenses are sold and everything in between.
And that’s roughly globally about 80% of the industry, but there is what we call enterprise deals which are 100s and 1000s of camera type opportunities, so they are typically larger systems. We defined it as anything above a quarter million into the millions. And the sales cycles for these sales are much longer and the approach is different.
And so we created a business development team which has essential caved up the market not geographically but by industry vertical and so we have been working towards essentially building small groups of business development directors focused on specific verticals and that team is about half way built out and we are making great strides in increasing our market share within the enterprise business and I think that that’s what I think you are inquiring about. So we are making great progress there.
This is also another portion of the conference call that I thought was important. A lot of people are worried about competition. There is a lot of different people that are in this space but not many that integrate everything into one package. So the ones just making camera’s will see their margins slip while Integrator like Avigilon should see a premium on their product.
So I think those are the kind of larger trend I think as well as the commoditization of camera hardware which is something that we fully embrace and we fully expect is happening and going to continue happening and I think the emphasis will be less on the hardware although that’s an important piece, it will never go away but it will become more commodity, but it is really a shift toward if I may the buzz word big data for video, intelligent video as we add more value in sort of all that data mining and use of the data, so that those are the large macro trends that I see.
Conclusion:
Avigilon is still moving towards their stated goal of having a 500 million run rate by the end of 2016. I believe they will hit it. If you look at their revenue by geographical region which I posted above. You will see all regions are growing. Some by huge numbers. One of the Analysts on the conference call asked if any regions were slowing down and the CEO stated that all were seeing good growth but that it would be choppy. I thought by the numbers that Canada might have reached saturation so that will be something we need to watch. If Canada is saturated it wouldn’t worry me because there are so many other regions with large growth. This company’s share price has been drifting down. I have started buying aggressively because I think this is a great price. Nothing has come out on this company that should cause the share price to go down. I think what might be happening is that the Canadian market is going down due to the price of Oil coming down. What does that have to do with Avigilon? Nothing. But this is what you call a present and I love a sale.
Andy
Long Aiocf
http://discussion.fool.com/avigilon-page-post-1-31314294.aspx