Cemtrex, Inc. (CETX) Announces Results for the Third Quarter ended June 30, 2019
August 20 2019 - 8:30AM
Cemtrex Inc. (Nasdaq: CETX, CETXW, CETXP), a leading global
technology company, announced its second quarter consolidated
results of operations for the three and six months ended June 30,
2019.
Third Quarter Highlights:
- Total revenue for the three months ended June 30, 2019 and 2018
was $22,452,050 and $19,164,314, respectively, an increase of
$3,287,736, or 17%. 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.
- Gross Profit for the three months ended June 30, 2019 was
$8,571,576 or 38% of revenues as compared to gross profit of
$7,263,415 or 38% of revenues for the three months ended June 30,
2018. Gross profit as a percentage of revenues in the three months
ended June 30, 2019 increased as compared to the three months ended
June 30, 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 June 30, 2019 and 2018 was a loss of $2,933,338 and a
loss of $3,498,291, respectively, a decrease in the loss of
$564,953, or 16%. Net loss available to common shareholders
decreased due to decreased personnel and research and development
expenses in the Advanced Technologies segment offset by the
consolidation of Vicon Industries, Inc., higher interest and other
expenses due to one-time expenses related to the Company’s notes
payable and settlement of litigation regarding the Series B
Preferred Stock, and lower revenues in the Industrial Technology
segment due to the decline in demand for environmental
products.
Nine Months Ended June 30, 2019 Financial Highlights
- Total revenue for the nine months ended June 30, 2019 and 2018
was $63,344,091 and $71,959,510, respectively, a decrease of
$8,615,419, or 12%. Total revenue in the first three quarters
decreased, as compared to total revenue in the same period last
year, due to decreased revenues in the Electronics Manufacturing
segment, and lower sales in the Industrial Technology segment due
to the weak demand for environmental products offset by revenues in
the Advanced Technologies Segment, which had an increase in
revenues of $12,993,088 as compared to the same period last
year.
- Gross Profit for the nine months ended June 30, 2019 was
$25,016,090 or 39% of revenues as compared to gross profit of
$25,295,237 or 35% of revenues for the nine months ended June 30,
2018. Gross profit as a percentage of revenues in the nine
months ended June 30, 2019 increased as compared to the nine months
ended June 30, 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 nine months
ended June 30, 2019 and 2018 was a loss of $8,051,287 and
$2,342,829, respectively, an increase of the loss of $5,708,458, or
244%. 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., higher interest and other expenses due to
one-time expenses related to the Company’s notes payable and
settlement of litigation regarding the Series B Preferred Stock,
and lower revenues in the Industrial Technology segment in response
the decline in demand for environmental products.
Cemtrex’s Chairman and CEO, Saagar Govil, commented on the
results, “We have implemented a number of changes in our
organization to focus on increasing cash flow from operations which
have already started to materialize. This quarter we also
experienced increased expenses due to several one-time finance and
legal charges which lowered our financial performance for the
quarter. We expect that as these operational improvements go
into effect over the next few quarters our financial performance
will improve to profitability.”
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.
For further information, please contact:
Investor Relations
Cemtrex, Inc.
Phone: 631-756-9116
investors@cemtrex.com
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