Brooklyn, NY, May 17, 2022 (GLOBE NEWSWIRE) — – Cemtrex Inc. (CETX, CETXP), a technology company driving innovation in the Internet of Things (IoT), security, machine vision and artificial intelligence, as well as augmented and virtual reality, announced its financial and operating results for the second quarter ended March 31, 2022.
Key Second Trimester 2022 And subsequent Strong points
- Revenue increased 37% to $12.7 million from $9.3 million in Q2’21.
- Announced a strategic shift to prioritizing its core businesses, in particular Vicon Industries, its security technology brand to maximize shareholder value, drive long-term growth and profitability. Along with the change in strategy aimed at strengthening its advanced technology segment, Cemtrex is considering the divestment of one or more business units to support its refocusing.
- Received a $1.2 million order through its Advanced Technology segment from a large correctional facility and current customer in Oregon to upgrade its security technology system with new hardware and software.
- Second investment of $0.5 million in Masterpiece Studio (formerly MasterPieceVR), a developer of a suite of professional desktop and virtual reality applications that offers 3D content creation tools, primarily for virtual reality and metaverse.
- onXRP.com, a leading technology and content platform that provides user-driven innovation to the XRP Ledger (XRPL), and CXR, a subsidiary of Cemtrex, have partnered to create a set of modular extensions that will help further develop the onXRP ecosystem.
- Regained compliance with Nasdaq audit committee composition requirements.
- Presenting Vicon’s end-to-end technology solutions at the ISC West conference.
Cemtrex President and CEO, Saagar Govil, commented on the results: “During the second quarter, we continued to see significant revenue improvement in our Advanced Technologies and Industrial Services segments due to the improving economic climate. This momentum, combined with a thorough review of our business units, has given us the opportunity to initiate a strategic shift towards refocusing efforts on our core businesses going forward. In particular, we believe that Vicon Industries has enormous untapped potential with growing demand as end users seek a reliable source of video surveillance and access control technologies suitable for today’s highly dynamic environment. During the quarter, Vicon received a $1.2 million upgrade order from a major correctional facility and current customer in Oregon that further validated its technology. We expect Vicon to reach $5-10 million in recurring revenue over the next three to five years as the industry shifts to SaaS solutions leveraging AI and cloud technology solutions.
“Along with this new direction, we continue to evaluate a range of operational and financial alternatives, including the sale of one or more of the company’s business units. We are also taking steps to address rising costs by raising prices and reducing overhead where possible. We believe these actions will improve gross margins to higher levels with the goal of returning to positive EBITDA for fiscal year 2023. We believe this approach is the best path to unlocking meaningful shareholder value in the future. future and will enable us to prioritize our security businesses and our industrial services segment which continues to be a significant source of cash flow with high recurring business and a well-known reputation.
“In addition to the year-over-year revenue improvement, the second quarter of 2022 was marked by the development of key partnerships with technology companies in the blockchain and virtual reality space. Going forward, we remain focused on growing our revenue with investments in our sales and marketing program, ongoing research and development, and advancing our technology partnerships Vicon will launch an analytics solution proprietary AI later this year, along with major enhancements to its core software platform Valerus, which will further drive growth.We believe our new direction will further position us for long-term growth and remain optimistic on the continued improvement of our revenues,” concluded Govil.
Second Quarter 2022 Financial results
Revenue for the three months ended March 31, 2022 and 2021 were $12.7 million and $9.3 million, respectively, an increase of 37%. Revenue for the six months ended March 31, 2022 and 2021 were $23.4 million and $18.1 million, respectively, an increase of 29%. This increase is mainly due to an improvement in economic conditions following the impact of the COVID-19 crisis during the same period last year. Advanced Technologies segment revenue for the quarter ended March 31, 2022 increased 41% to $7.7 million, and Industrial Services segment revenue for the quarter increased 33% to $5.0 million of dollars.
Gross profit for the second quarter of 2022 was $4.1 million, or 32% of revenue, compared to gross profit of $3.9 million, or 42% of revenue for the period of the year former. Gross profit decreased primarily due to increased transportation costs and supply chain shortages.
Total operating expenses for the three months ended March 31, 2022 were $7.9 million, compared to $5.9 million in the prior year quarter.
Operating activities for continuing operations used $7.2 million for the six months ended March 31, 2022, compared to $2.9 million of cash for the six months ended March 31, 2021.
Net loss for the three months ended March 31, 2022 was $4.7 million, compared to net income of $2.4 million in 2021. Net loss increased in the first quarter from the same period last year, primarily due to revenue costs and operating expenses. .
Cash and cash equivalents totaled $9.0 million as of March 31, 2022, compared to $15.4 million as of September 30, 2021.
Cemtrex, Inc. (CETX, Financial) is a leading multi-industry technology company driving innovation in markets such as the Internet of Things (IoT), Augmented and Virtual Reality (AR & VR), Artificial Intelligence and Computer Vision ( AI & CV) across a wide range of industries, including consumer products, industrial manufacturing, digital applications, and intelligent security and surveillance systems. www.cemtrex.com.
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the closing of an offering, gross proceeds of an offering, our new product offerings , the intended use of the proceeds or any proposed fundraising activity. These forward-looking statements are based on management’s current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Statements made herein are as of the date of this press release and should not be relied upon at any later date. These risks and uncertainties are discussed under the heading “Risk Factors” contained in our Form 10-K filed with the Securities and Exchange Commission. All information in this press release is as of the date of publication and we undertake no obligation to update this information except as required by law.