Meanwhile, EBITDA1 was $5.1 million, a 319 per cent improvement over Q1 2012 EBITDA of $1.2 million and net income was $2.8 million, a 332 per cent increase from net income of $0.6 million in Q1 2012.
“Our strong start to 2013 demonstrates our continued success in capitalizing on the opportunities in front of us and gaining global market share,” said Alexander Fernandes, president and chief executive officer at Avigilon.
“We generated high double-digit revenue growth and delivered improved profitability, while increasing our strategic investments in the business.”
“The transition from analog to high-definition surveillance technology is proceeding rapidly. For the first time, our industry will see high-definition surveillance sales outpace analog sales.”
Importantly, research and development (R&D) expenses, net of related income tax credits, were $1.7 million for Q1 2013, a $0.6 million, or 61 per cent, increase compared to $1.1 million in Q1 2012. Gross R&D spend was $2.0 million in Q1 2013, compared to $1.3 million in the prior year.
The increase in spending is due to additional new hires, in line with the company’s plan to expand its product development team to further enhance its product offering. Avigilon expects to continue to increase its R&D investment to support new product development, bringing the Company to more typical industry levels for R&D as a percentage of revenue.
