Cemtrex, Inc. Q3 FY2023 earnings call

• Vicon had a 36% year-over-year revenue growth to $9 million driven by strong demand for its cameras and software, with multiple large orders including a $1.1 million follow-up order and a $0.8 million order for a UK prison system.
• Vicon is on track to launch more products and improve its core software platform, Valerus.
• Industrial Services segment revenue increased 5% y-o-y, and the acquisition of Heisey Mechanical is expected to be accretive in the fourth quarter of fiscal year 2023, bringing over $11.6 million in annual revenue and ~$775k adjusted EBITDA.
• Gross margin for AIS improved to 36% for the quarter compared to 30% in the prior year quarter.

Security Segment: For the three months ended June 30, 2023, revenue was $9 million, a 36% year-over-year increase. Year-to-date (first nine months) revenue was $25.9 million, exceeding the full year 2022 revenue of $23.6 million. It contributed approximately 61.2% to the three-month total revenue of $14.7 million and ~60.5% to the nine-month total revenue of $42.8 million. Industrial Services (AIS) Segment: Revenue for the quarter increased 5% to $5.7 million, mainly due to increased demand for services. The acquisition of Heisey Mechanical added over $11.6 million in annual revenue and ~$775,000 in adjusted EBITDA. It contributed approximately 38.8% to the three-month total revenue of $14.7 million and ~39.5% to the nine-month total revenue of $42.8 million.

• Expect full year operating profit for fiscal year 2024.
• Vicon is expected to drive further growth with new products and Valerus software improvements.
• AIS is expected to continue expanding revenues and exceed the original 3% target of $21.8 million for fiscal year 2023.
• Anticipate gross margin increases in the coming quarters.