TORONTO – A growing subscriber base and a “substantial reduction” in marketing costs helped home security company AlarmForce Industries Inc. (TSX:AF) nearly double its net income in the first quarter.
For the three-month period ended Jan. 31, net income was up 97 per cent to $1.3 million, or 11 cents per diluted share, compared to $699,000 or six cents per diluted share, year over year.
Revenue was $11.9 million, up nine per cent from $10.9 million.
The Toronto-based company notes its gross margin decreased from 77 per cent to 74 per cent for the period compared with the first quarter of 2012 largely due to the introduction of its VideoRelay product and its associated manufacturing costs.
“We continue to grow without adding debt, funding all our costs of growth, including marketing, research and development expenses from our operating cash flows,” said AlarmForce president and CEO Joel Matlin in a release.
“We anticipate that we will continue our growth in revenues and earnings, with our two-way voice alarm, personal emergency response and remote-access video systems at the forefront of technology and consumer acceptance.”
The company says for this period, it increased its total subscribers by seven per cent compared with its fiscal first quarter of 2012 to a total of 135,600 accounts.
AlarmForce, which operates in Canada and the United States, provides security alarm monitoring, personal emergency response monitoring, video surveillance and other services to home and business customers.