Cemtrex (CETX) 14 Aug 242024 Q3 Earnings call transcript

Greetings, and welcome to the Cemtrex Third 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 some factors Throughout may our relating present that important predictions. business today's will our to we affect discussion, attempt to

A You X and complete Factors. more these of factors release for other heading cemtrex.com. review particularly press discussion and most the in website, the Form recent results this our also Investor these a should XX-K Relations XX-Q under risks, was section and detailing afternoon company's available of our Risk issued is

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

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

pleased afternoon, third Good operator. quarter you, financial everyone. results XXXX today's Thank welcome call. conference I'm you to to

sustaining the to see to and momentum continue was quarter, due in AIS a for Significant services of in We at revenue projects. segments drove products multiple million, decreases revenue, XX% Vicon in during $XX.X offset $X.X delay which demand increase primarily million. third revenue the to our by year-over-year

and ago, was $X.X X-month million $X.X despite G&A Operating mainly the million segment million operating a in expenses. year loss due profit for million year The $X sales. loss period to quarter for increased the the income compared third Security a was our ago, to operating compared of $X.X approximately decreased higher to gross

cost committed our hard and operating expenses charges, full a write-offs. related approximately goal to tight However, debt of control. to while onetime profit onetime to in achieving remain bad some include expenses maintaining revenue working these results We and drive are legal $X million year employee-related

drive believe deployment marketing new segment, investments that Security we sales delays, to several next and and into project over continues resources of the products sales technologies our quarters. push Vicon will team despite the at the with In

year were strive to make by operations inventory fiscal our as we reduce million this also We to efficient. able our over $X more

the improvements cloud along We Valerus. launch core continued to with this and to with expect the platform, innovative platform, be our security released new year software Anavio, of later technologies new

We Vicon in revenue. growth fiscal year that are see strong confident will XXXX, in

Services Industrial from that on Our growth a companies, we of a delivered another believe record produce will segment revenue. strong of orders quarter pipeline year leading building

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

the we $XX balance which public to took opportunity a of pay to our underwritten our off indebtedness. of some of the During used quarter, proceeds improve sheet million the a portion were offering, with upsized

achieving the our of ahead, Looking to for additional positive well now future. are we reach growth operating goal income in and positioned

The strengthened our provides reach also continue market to and acquisition for service the value can balance our to as explore seek sheet long-term ability enhance opportunities capabilities we shareholders. that

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

segment the fourth during segment of the Heisey XX% segment decreased million. of was due to The the to for $X.X to to XXXX for segment due a for increased economic of quarter for The a $XX.X acquisition for revenues quarter Security third XXXX Saagar. the Revenue demand you, services services as as decrease delay well of segment was by projects Thank million. revenues flat Security revenue million, due the mainly the products XXXX third increased multiple year the Industrial $X.X conditions XXXX. and and the quarter and XX% fiscal completed quarter Services services, to overall industry. The additional in the by

revenues compared for of $X.X XXXX, months $X.X profit XX% million ended of million operating to profit as quarter XX% revenues XX, X XXXX. third or $X.X gross $X.X XXXX was were the compared quarter. of of June to for the third year's the in Gross expenses million prior million quarter Total of for or the

$X.X XXXX quarter the of million in the Securities compared as in for gross G&A for quarter million expenses. the was operating to third overall of was to loss $X.X Operating income profit and decrease in XXXX. operating loss due third of The increase segment primarily our

cash XXXX, of XX, million to back compared in $X.X a $X.X to compared as million will Net of the million loss XXXX. Saagar million XXXX XXXX September June XXXX, to third million turn Inventories Cash as restricted XX, from for to the quarter our decreased totaled June call net XX, cash $X.X for $X.X now million review at third XXXX. I and loss at quarter $X.X equivalents $X.X outlook. a at and of at XXXX. of September XX, the was

income offering in Paul. Thank summary, with the sheet balance from upsize closed, we progress you, operating are positive toward future. $XX achieving In a we fortified a the goal of steady million making

value-add consistently front, opportunities accelerate potential our the acquisition further we evaluating can acquisition On growth. are that

we strategic come forward growth. managing the look for to months we work value as on to prudently for initiatives As while We balance well additional we providing sheet, execute positioned long-term our to shareholders. are build our in long-term our updates

like your I to you all attending, now thank questions. for answer and would I Operator?

is hands, have one Arnold. which who We Instructions] [Operator Richard raised

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analysts there or of for participants hand now, any questions. is raising no As right

turn at for questions further no Govil call Saagar this to time. over are I his closing Mr. would now There the back remarks. like to

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

concludes gentlemen, your participation. for and Ladies this you conference Thank call. today's

disconnect. may You now