Business
Cemtrex Reports Third Quarter 2023 Financial Results
Q3’23 Revenue Increased 22% to $14.7M with 2nd Consecutive Quarter of Positive Operating Income of $0.1M Gross Margin up 200 Basis Points to 44% in Q3’23
About this update from Cemtrex Inc.
[{"type":"text","content":"Q3’23 Revenue Increased 22% to $14.7M with 2nd Consecutive Quarter of Positive Operating Income of $0.1M\nGross Margin up 200 Basis Points to 44% in Q3’23 Management to Host Conference Call Today at 5:00 p.m. ET Brooklyn, NY, Aug. 10, 2023 (GLOBE NEWSWIRE) -- - Cemtrex Inc. (NASDAQ: CETX, CETXP), an advanced security technology and industrial services company, has reported its financial and operational results for the third quarter ended June 30, 2023. Key Third Quarter FY 2023 and Subsequent Highlights Revenue for Q3’23 increased 22% to $14.7 million, compared to revenue of $12.1 million for Q3’22. Security segment revenues increased 36% to $9.0 million in Q3’23 as border protection vertical drives new order volumes for Vicon. Gross margin up 200 basis points to 44% in Q3’23 from 42% in the prior year quarterOperating income of $0.1 million for Q3’23 compared to operating loss of $1.5 million in Q3’22, and second consecutive positive quarter from $0.4 million in Q2’2023.Closed the acquisition of Heisey Mechanical Ltd., a leading service contractor and steel fabricator that specializes in industrial and water treatment markets, on July 1st, 2023, adding approximately $11 million in revenue, positive cash flow and expands capabilities and customers into new markets.Received a $1.1 million order through Vicon Industries from a current large border protection customer in Texas to develop its security technology system with new solutions, expanding on the customer’s $1.5 million order in January 2023.Cash, cash equivalents and restricted cash as of June 30, 2023 was $6.4 million. Management Commentary Cemtrex Chairman and CEO, Saagar Govil, commented on the results: “The third quarter of fiscal year 2023 was highlighted by continued sales execution by Vicon with multiple large orders, and the closing of our acquisition of Heisey Mechanical, an established contractor in a growth market that is highly synergistic with our Advanced Industrial Services (“AIS”) subsidiary. The quarter culminated in revenue growth of 22% year over year and, in combination with operational improvements and a gross margin improvement of 200 basis points to 44%. We expect gross margin to continue to increase as we make further enhancements in Vicon’s business. Overall operating income for the quarter increased to $0.1 million compared to an operating loss of...