Cemtrex, Inc. (CETX) Announces Results for First Quarter ended Dec 31, 2018
February 20 2019 - 8:35AM
- Cemtrex Inc. (Nasdaq: CETX, CETXP, CETXW), a leading global
technology company, today announced its first quarter consolidated
results of operations for the three months ended December 31, 2018.
First Quarter Results:
- Total revenue for the three months ended December 31, 2018 and
2017 was $17,284,544 and $32,381,900, respectively. Total revenue
in the first quarter decreased, as compared to total revenue in the
same period last year, as the Company transitions from its low
margin contract manufacturing businesses into its high margin IoT
smart hardware and software businesses and due to lower sales in
the Industrial Technology segment as a result of the softening
demand for environmental products globally.
- The Company generated revenues of $467,835 from its newly
formed Advanced Technologies division. The Gross profit on these
revenues was $275,470, or 58%. Of the segment revenues, the Company
generated approximately $100,000 in SmartDesk sales during the
period, marking the first shipments of the new product.
- EBITDA for the three months ended December 31, 2018 and 2017
was a loss of $357,560 compared to a gain of $2,078,007,
respectively.
- Net income for the three months ended December 31, 2018 and
2017 was a loss of $2,176,298 and income of $731,991,
respectively. Net income decreased due to lower total
revenues and increased sales and marketing expenses related to the
business development of SmartDesk and VR applications in the
Advanced Technologies segment as well as due to the loss based on
equity ownership in Vicon Industries, Inc.
The Company expects sales of its new product, the SmartDesk, to
increase in subsequent quarters as the company fulfills existing
orders and receives new ones. The Company continues to focus on
securing more enterprise customer orders in 2019 to reach its
strategic goal of making SmartDesk a vital part of the modern
workspace globally.
Cemtrex’s Chairman and CEO, Saagar Govil, commented on the
results, “While total revenues were lower in the period, we
continue to make important progress on our transition to higher
margin business. During this quarter we shipped our first
SmartDesks to customers, only 18 months after beginning development
of the product, which is a tremendous milestone for the company.
Interest from major customers in our SmartDesk continues to grow,
and we are successfully reducing our dependency on low margin
legacy businesses. We have made several investments in 2018 in new
high growth areas from our SmartDesk, to security technology with
Vicon Industries, and Virtual and Augmented Reality software, that
we believe will start to generate returns in 2019 and beyond.
Additionally, in the more near term we are very confident, as the
sales of Smartdesk increase in the current year, the Company will
return to profitability.”
To learn more and stay updated about SmartDesk, please visit
www.smartestdesk.com.
About Cemtrex
Cemtrex, Inc. (CETX) is the manufacturer of the SmartDesk, the
world’s most advanced workstation. Cemtrex is a diversified
technology company that's driving innovation in a wide range of
sectors, including smart technology, virtual and augmented
realities, advanced electronic systems, industrial solutions, and
intelligent security systems.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.
Use of Non-GAAP Metrics: EBITDA
The Company believes that EBITDA is a useful financial metric to
assess its operating performance before the impact of investing and
financing transactions and income taxes. The Company believes that
EBITDA will provideinvestors with a useful tool for assessing the
comparability between periods because it eliminates depreciation
and amortization expense attributable to capital expenditures.
EBITDA in this release was calculated using Operating Income +
Deprecation + Interest Expense.
Investor Relations
Cemtrex, Inc.
Phone: 631-756-9116
investors@cemtrex.com
General Inquiries
sales@cemtrex.com
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