Cemtrex, Inc. (CETX) Announces Results for the Second Quarter ended March 31, 2019
May 20 2019 - 5:50PM
Business Wire
Sales and Gross Profit for the quarter
increased by 16% and 11% respectively
Cemtrex Inc. (Nasdaq: CETX), a leading global
technology company, announced its second quarter consolidated
results of operations for the three and six months ended March 31,
2019.
Second Quarter Highlights:
- Total Revenue for the three months
ended March 31, 2019 and 2018 was $23,607,497 and $20,413,296,
respectively, an increase of $3,194,201, or 16%. Total revenue in
the second quarter increased, as compared to total revenue in the
same period last year, primarily due to new revenues in the
Advanced Technologies Segment, which had no revenues during the
same period last year.
- Gross Profit for the three months ended
March 31, 2019 was $9,449,392 or 40% of revenues as compared to
gross profit of $7,383,310 or 36% of revenues for the three months
ended March 31, 2018, a percentage basis increase of 11%. Gross
profit as a percentage of revenues in the three months ended March
31, 2019 increased as compared to the three months ended March 31,
2018 as the Company works to achieve economies of scale, lower
expenses, and shift to products and services with higher
margins.
- Net income available to common
shareholders for the three months ended March 31, 2019 and 2018 was
a loss of $1,983,867 and income of $423,471, respectively, a
decrease of $2,407,338, or 568%. Net income available to common
shareholders decreased due to increased expenses in sales and
marketing for the SmartDesk and VR applications in the Advanced
Technologies segment as well as the consolidation of the variable
interest entity, Vicon Industries, Inc.,
Six Month Ended March 31, 2019 Financial Highlights
- Total revenue for the six months ended
March 31, 2019 and 2018 was $40,892,041 and $52,795,196,
respectively, a decrease of $11,903,155, or 23% primarily due to
lower revenue in the industrial Technology segment as a result of
significantly reduced revenues in the environmental products
markets, which the Company has decided to exit.
- Gross Profit for the six months ended
March 31, 2019 was $16,444,514 or 40% of revenues as compared to
gross profit of $17,907,802 or 34% of revenues for the six months
ended March 31, 2018. Gross profit as a percentage of revenues in
the six months ended March 31, 2019 increased as compared to the
six months ended March 31, 2018 as the Company works to achieve
economies of scale, lower expenses, and shift to products and
services with higher margins.
- Net income available to common
shareholders for the six months ended March 31, 2019 and 2018 was a
loss of $5,117,947 and income of $1,155,462, respectively, a
decrease of $6,273,409, or 543%.
Cemtrex’s Chairman and CEO, Saagar Govil, commented on the
results, “This quarter saw our revenues increase with the growth in
sales in our Advanced Technologies segment as we shift into
technology businesses which provide higher gross margins and thus
will allow us to generate better returns for our shareholders over
the long term.
“The Company has now taken numerous steps to reduce the on-going
loss and bring costs in line with expected revenues moving forward
which will start to reflect in our next quarterly report. Our goal
is to reach cash flow positive as soon as possible and eliminate
the need to raise any further equity capital. This may result in
longer timeframes to realize our growth targets, particularly
around SmartDesk and VR activities, but ultimately will limit
further dilution to common equity,” continued Mr. Govil.
About Cemtrex
Cemtrex, Inc. (NASDAQ:CETX) is a global, multi-industry company
that provides a wide array of solutions to meet today’s consumer,
commercial, and industrial challenges. Cemtrex provides
manufacturing services of advanced custom engineered electronics,
integrated hardware and software solutions, industrial contracting
services, and development of smart electronic devices. The Company
also creates virtual reality and augmented reality
applications.
www.cemtrex.com
Safe Harbor Statement
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements relating to our new product offerings or
any proposed fundraising activities. 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 set forth in or implied by
such forward looking statements. These risks and uncertainties
include, but are not limited to: operational losses and negative
cash flows; any need for additional financing; market acceptance of
our products; our ability to manufacture and develop effective
products and solutions; indebtedness to our lenders; current and
future economic conditions that may adversely affect our business
and customers; potential fluctuation of our revenues and
profitability from period to period which could result in our
failure to meet expectations; our ability to maintain adequate
levels of working capital; our ability to incentivize and retain
our current senior management team and continue to attract and
retain qualified scientific, technical and business personnel; our
ability to expand our product offerings or to develop other new
products and services; our ability to generate sales and profits
from current product offerings; rapid technological changes and new
technologies that could render certain of our products and services
to be obsolete; competitors with significantly greater financial
resources; introduction of new products and services by
competitors; challenges associated with expansion into new markets;
and, other factors 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 the release and we undertake no duty to update this information
unless required by law.
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Investor RelationsCemtrex, Inc.Phone:
631-756-9116investors@cemtrex.com
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