Milestone Systems reported 2013 revenues of DKK 407 M (EUR 54.6 M), up 28 per cent from DKK 318 M (EUR 42.7 M) in 2012, outperforming an otherwise strong overall projected market growth rate of approximately 20 per cent. This is a continuation of a strong track record: Milestone Systems revenues have grown close to 30 per cent on average per year since 2007.
The strong revenue growth was achieved without compromising profitability. Operating income before depreciation and amortization (EBITDA) rose to DKK 90 M (EUR 12.1 M), an 81 percent increase from the DKK 50 M (EUR 6.7 M) reported in 2012. Due to the scalability of its operations, the EBITDA margin increased to 22.1 percent from 15.6 percent in 2012 and net income was DKK 34 M (EUR 4.6 M) compared to DKK 10 M in 2012 (EUR 1.3 M).
The increase in revenues was due to strong performance in all geographies and improved efficiencies with the channel partners who sell and install Milestone video management software. 2013 also saw solid growth in the number of solution partners who develop third-party integrations with the Milestone open platform. The increase in earnings is a result of the Milestone strategy at work with an operational leverage kicking in throughout the cost base.
"We are very proud of these results. This clearly shows our ability to deliver solid topline growth and at the same time improve profitability, underlining the scalability of our unique open platform business model. We are capitalizing on the Milestone brand strength while exponentially scaling out its reach with our broad ecosystem of partners," said Lars Thinggaard, president and ceo, Milestone Systems.
In 2013, Milestone also invested DKK 61 M (EUR 8.2 M) in research and development (R&D) that was capitalized as a key priority that supports the ambition of being a world-class innovator and technology leader, driving the transition from analog to IP-based video surveillance.
"We are at a tipping point in the transition from analog to IP video surveillance, and we believe that open platform video management software is key in this development. In combination with the market opportunities beyond surveillance, i.e. within education, healthcare and business analytics, I am confident that we can continue to successfully develop the company,"Thinggaard said.
Industry analysts expect continued growth in the video surveillance market. In tack with this, Milestone Systems aims to further strengthen its global market leadership position by continuing to expand its competitive portfolio of innovative surveillance offerings through its international ecosystem of channel partners, camera vendors, technology and solution partners.