Cemtrex (CETX) 14 May 242024 Q2 Earnings call transcript

Greetings, and welcome to the Cemtrex Second Quarter 2024 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

Before we begin the formal presentation, I would like to remind everyone that statements made on the call and webcast may include predictions, estimates or other information that might be considered forward-looking.

While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially.

You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation.

of that release not revision the forward-looking in mind revise ourselves to in future statements publicly or or results light keep we obligating are to these events. Please information new of any

Throughout important relating today's affect predictions. to some may factors that discussion, attempt business present will our we to our

other for complete discussion of should our recent most Risk more You under Form XX-K heading factors a and risks, also review and particularly the Form XX-Q risk Factors.

results these in detailing release issued section this our available press A cemtrex.com. is and was the of afternoon Relations Investor company's website,

Your Officer; second Financial of Chief host ended Govil, today, unaudited operations our Saagar XXXX. Chief quarter and Paul results present will Executive March Wyckoff, the for XX, Officer,

over Govil. Officer, to Cemtrex's time, this At Chief Please ahead. call Saagar I will the go Executive turn

Thank afternoon, and today's Quarter I'm XXXX welcome to Results good Second pleased you Conference Call. to Financial you, operator, everyone.

XXXX and business. by second fiscal highlighted new quarter our across was growth deployments year technology overall our of The continued

had X-month second For the prior of $X.X year sales. million year was loss for the loss income second quarter, to million XX%. to Operating operating in $X.X the gross ago. revenue of and million compared a our X%, for the of million, was margin period $X increase quarter was million an $XX.X compared Operating Cemtrex $X.X higher despite

onetime anticipate employee-related charges from that not million and expenses do the incurring in However, in these future. $X include results expenses we approximately legal

remains drive we and controls. revenue Our cost goal a operating working are maintain of reaching to hard year and full tight profit

still certain in of delay year-over-year of Despite million. growth year. The the and half the products decreased quarter the the is fiscal the $X.X Security our for showing the the the decrease delay to Security segments, to in Revenues in projects, segment some XX% second segment was first Vicon in projects due of services. by

platform. new Vicon's introduce the Vicon deployment including Anavio, security continued new to cloud of technologies innovative products, and

their and manage a streamline to intercom awareness Anavio access to enabled control, ultimately single control. via users tool situational and and complete video achieve

the only authorized people whereby Anavio person interest new face forensically person Some and authentication throughout of features facility. include feature multiple a of or of specific a people can track facilities powerful a users access that can ensures

to continue in with sales the Security invest in quarters. marketing and We several growth the resources of our the sales goal next segment, over driving

striving increase reduced to We inventory for efficiency million also have $X are by and operational this fiscal over year.

additional Anavio in improvement further of With launch along drive core and Valerus, our software growth the and technologies opportunity to see platform, to grow new to gross continued we expect margin with XXXX.

Revenue highly segment the $X.X for Heisey segment, and as due increased services mainly We synergistic believe pipeline. this to additional year a will produce revenue of acquisition business AIS, record for a our to by driven Services robust increased Industrial of our demand orders companies Mechanical. XX% as leading well new million, from growth from

in to We to additional potential more ahead, the has year than AIS continue with XXXX. XX% growth annual orders believe fiscal reach

service order from $X.X company, the affirms existing $X.X AIS printing which AIS' graphics to including an X projects across a leading and order second secured quarter, the construction commitment a and for to excellence During for and relocation engineering million orders, delivering company equipment million its remove offerings.

financials. Paul I'll discuss the our to now turn over to call CFO, Wyckoff,

for XX% and The services. the and to million. and X%. XXXX Security respectively, quarter $XX.X products Saagar. were multiple an decreased of $X.X by fiscal The Revenue of Security segment's $XX.X the second delay million, increase million decrease quarter was of for first to segment segment XXXX for revenues due you, Thank a the XXXX of projects

Heisey as revenues by due the to acquisition to services mainly increased the demand as completed to for segment well the during quarter quarter XX% segment of The fiscal XXXX. for year revenue million, increased Industrial Services the $X.X fourth due additional

to of of Gross of XXXX. quarter the million XXXX of or compared as revenues for XX% quarter the second $X.X $X.X profit revenues million of for gross was second profit or XX%

compared Securities to decrease was in operating ended XXXX. year's million million were the quarter second the overall segment $X.X an X to months operating profit XX, and income XXXX million to a the operating of was for in quarter payroll loss $X March Operating our million gross loss due $X for increased The quarter. in of XXXX, the second expenses. primarily of expenses Total prior as for $X compared

of quarter to to loss $X.X restricted Net million million compared quarter XXXX. XX, second totaled XXXX, million second net cash in cash $X.X loss $X.X as XX, compared million and September $X.X Cash, at at a of XXXX. for the as the was March of XXXX equivalents

at second to in the million. from firm XXXX. company Inventories a Subsequent the decreased of offering closed gross quarter, to commitment company September million with under XX, million of public the $XX approximately March XXXX, at XX, $X.X proceeds $X.X

Saagar call outlook. to our a turn for now will back XXXX of I the review

Thank you, Paul.

positive Looking momentum are ahead, goal in basis. well on to XXXX build to we our full income fiscal our remain year operating achieve focused year on positioned and on a

to our sheet upsized our indebtedness. the a pay off from strengthened $XX which balance of underwritten portion of proceeds million closed, the we were some have public We offering used of

and further opportunities our the capabilities and that explore market drive We in ahead. potential have enhance acquisition the reach and to months years growth service continue to

remain the management, positive positive on We committed XXXX. delivering operating achieving Thank are with focused you to incremental year and fiscal for for diligent sheet income we results, year and all operating full balance along growth attending.

answer to I your now Operator? And would questions. like

JM from Company. with first the [Operator Cohen your And Instructions] question Instructions] & Cohen line comes of Jared [Operator

no time. further it Govil turn remarks. at to have this like we back to I Saga for questions currently would And

MZ Thank IR look Thank who you, operator. be were we and happy assist. our update please your questions, more earnings answer to would you out to growth. firm, our If to Group, unable I reach to for continuing you. than free would conference ongoing to you thank of each any forward of feel on our and to like call today joining to progress

you, gentlemen, call. for conference Thank participating. this and ladies And concludes Thank presenters. all today's you

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