Cemtrex CEO Provides Update to Shareholders
May 16 2018 - 01:09PM
Cemtrex Inc., today announced that its Chairman and CEO
released a letter to shareholders as follows:
To the Shareholders of Cemtrex,
In 2011, I stepped into the role as CEO and addressed many
challenges we faced as a company. We were a going concern, we had
little resources, and had no technology of our own. We were stuck
in an industry with non-existent growth potential and as an
organization we added little value in the value
chain.
Through many initiatives over the subsequent five years we were
able to address almost all of these challenges. We have grown from
a six person team in 2010 to a 600 person team now in 2018. We have
increased revenue from $3 million to over $100 million in this time
period, a feat most companies never are able to accomplish, through
strategic acquisitions and focusing on new markets. Our tangible
book value per share increased from $.01 to over $3.50 from 2010 to
2018. We expanded out of the environmental business and into
electronics and technology businesses, as well as broader
industrial and manufacturing businesses, that participate in high
growth
industries.
Last year we stepped back and evaluated where we were and charted a
path that would allow us to become a billion-dollar business over
the next several of years. We recognized the biggest opportunities
there would be over the next decade that we could take advantage of
based on our core competencies and resources. We homed in on a few
key markets that would get us there: Internet of Things (IoT) &
Smart Devices, Virtual Reality (VR) & Augmented Reality (AR),
and Automation &
Robotics.
Our company has been transitioning over the last year as we
position ourselves for our next phase of growth, diving into these
markets respectively. Our strategy is to develop our own
technology, leverage our key assets and resources, and continue to
acquire companies or technology that will give us the means to
create and sustain competitive advantages in these markets. We have
focused on expanding our software development capabilities by
acquiring a team in the US and India that will allow us to develop
our own proprietary software solutions. We have invested in
research and development in both hardware and software technology
that is starting to yield results in the form of patent claims we
have filed. We additionally continue to increasingly shift our
manufacturing to low cost countries like Romania and Asia. We also
recently acquired a stake in Vicon Industries, a security system
company, that gives us a platform to further expand and leverage
our technology roadmap. These initiatives we expect will allow us
to leverage our existing core businesses with advanced technology
to sustainably increase margins and maintain competitive advantages
over the long term.
The first milestone in our roadmap will be revealed with the
unveiling our flagship smart device on May 22, the SmartDesk, an
intelligent work station that we believe will change the way we
work. The SmartDesk is unlike anything else on the market today and
has the potential to exponentially increase Cemtrex’s revenues in
the next three years. In addition, we have more smart devices
planned over the next several years that we believe have strong
revenue and earnings potential. At Cemtrex, we believe that VR / AR
has the chance to disrupt countless industries and create entirely
new ones overnight and will be investing heavily in this space in
the years to come. We will be commercializing applications in VR
and AR over the next twelve months, beginning with our first gaming
content experience, Ultra85, to be released this
summer.
I am incredibly excited about Cemtrex entering cutting edge
technology areas that will dominate the trends of the next decade.
As our strategy and direction continues to evolve it is important
to understand what my vision is for the company. My number one
priority is to create shareholder wealth by putting our resources
to work in an intelligent way. Management continues to own more
than 40% of the company and thus we are intensely motivated to
position the company for success. Additionally, at Cemtrex our
decisions are heavily skewed toward long term results rather than
quarter to quarter results. As a result, there may be short term
bumps along the way but we remain confident that we can continue to
yield attractive results for those investors who wish to join us
for the long term.
Sincerely,
Saagar GovilChairman and CEOCemtrex Inc.
Safe Harbor Statement This press release
contains forward-looking statements. Actual results could differ
materially from those projected in the forward-looking statements
as a result of a number of risks and uncertainties. Statements made
herein are as of the date of this press release and should not be
relied upon as of any subsequent date.
Investor Relations
Cemtrex, Inc.
Phone: 631-756-9116
investors@cemtrex.com
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