Topic: How To Invest

Hi, Pat: What’s your opinion on Avigilon? Thanks.

Article Excerpt

Avigilon Corp., $18.05, symbol AVO on Toronto (Shares outstanding: 46.6 million; Market cap: $841.8 million; www.avigilon.com), designs, makes and sells high-definition surveillance systems. Users can view the images from this equipment on computers, tablets and smartphones. In the three months ended March 31, 2015, Avigilon’s revenue jumped 35.3%, to $75.4 million from $55.8 million a year earlier. However, earnings before one-time items fell 6.0%, to $7.9 million from $8.4 million. In April 2014, the company raised $100 million by issuing 3.4 million shares at $29 each. The extra shares reduced its per-share earnings by 10.5% in the latest quarter, to $0.17 from $0.19. Avigilon is investing heavily in its operations, including hiring more salespeople and building a new plant in Texas. It’s also spending more on product development: its research costs jumped 47.1% in the latest quarter, to $7.3 million (or 9.7% of revenue) from $5.0 million (or 9.0%) a year earlier. This spending is helping Avigilon develop new technology like its LightCatcher system,…