Cemtrex Releases 3Q19 Results


Reading time ( words)

Cemtrex Inc. 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. 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. For more information visit www.cemtrex.com.

Share

Print


Suggested Items

CFX Preview at IPC APEX EXPO 2020

01/13/2020 | I-Connect007 Editorial Team
The I-Connect007 Editorial Team chats with IPC’s Chris Jorgensen about the advances CFX has made in the past year and where the standard is in the standardization process. Chris also previews the CFX line that will be on display at the upcoming IPC APEX EXPO and shares IPC’s plans on educating and providing support solutions to potential users of CFX to implement it more easily.

The Future of the World Is Truly in the Hands of Our Youth

12/13/2019 | Barry Matties, I-Connect007
At I-Connect007, we are proud to once again sponsor the STEM Outreach Program at the upcoming IPC APEX EXPO 2020. Another way we support our youth is by sharing the stories of young people who are doing amazing things. Dylan Nguyen is a great student, musician, and creative thinker. Recently, he shared with me the details of his school science fair project, “Kite: Powering the Future,” which solved a problem that he faced. Dylan is a leader with a bright future, and the world is lucky to have kids like him.

Explaining the QSFP-DD Data Center Interconnect Standard

11/05/2019 | Scott Sommers, Molex
According to Cisco’s report, most IP traffic either originates or terminates in data centers. Yet as massive as the flows between centers are becoming, the data managed within those same facilities is going even higher. All of this activity means that “hyperscale” is the word of the future. Roughly one-quarter of all servers installed in 2016 went to hyperscale facilities, but that number will grow to almost one-half by next year.



Copyright © 2020 I-Connect007. All rights reserved.