Business
Cemtrex Announces New Strategic Focus to Address Significant Near-Term Opportunities
Evaluating a Range of Operational and Financial Alternatives Including the Sale of One Or More of the Company’s Business Units Brooklyn, NY, May 04, 2022
About this update from Cemtrex Inc.
[{"type":"text","content":"Evaluating a Range of Operational and Financial Alternatives Including the Sale of One Or More of the Company’s Business Units\nBrooklyn, NY, May 04, 2022 (GLOBE NEWSWIRE) -- - Cemtrex Inc. (NASDAQ: CETX, CETXP), a technology company driving innovation in Internet of Things (IoT), security, machine vision & artificial intelligence, and augmented & virtual reality, today announced a strategic shift towards prioritizing its core businesses, in particular Vicon Industries, its security technology brand to maximize shareholder value, drive long term growth, and profitability. In conjunction with the strategy shift to bolster its Advanced Technologies segment, Cemtrex is exploring the divestiture of one or more business units to support its refocus. Chairman and CEO, Saagar Govil commented, “After a thorough strategic review of our business units by management and our Board of Directors we have decided to refocus our efforts on our core businesses. We see enormous untapped potential in our security business, Vicon, with escalating demand as end-users seek a reliable source of video surveillance and access control technologies fit for today’s highly dynamic environment. Vicon continues to experience elevated demand for its security portfolio from major customers, including a recent $1.2 million upgrade order, validating its technology and reaffirming its upward growth trend. We believe Vicon is on a strong path towards $5-10 million of recurring revenue in the next three to five years as the industry shifts to SaaS solutions leveraging AI and cloud technology solutions. We believe this shift in focus to capture significant near-term recurring revenue opportunities in Vicon will maximize shareholder value over the next several years.” “This review has also concluded that a more focused approach to unlocking shareholder value should be evaluated through the potential sale of one of more of our business units. While we intend to prioritize our security business our Industrial Services segment continues to be a strong source of cash flow with high repeat business and a well-known reputation. We expect to see continued growth in this segment driven by an increase in demand for industrial contracting and predictive maintenance services, as the industrial economy in the US continues to thrive. “Looking ahead, we are committed to building mar...