Cemtrex, Inc. Q3 FY2024 earnings call

• Momentum in segments with AIS revenue up 49% due to significant demand, offset by Security segment revenue decrease from project delays.
• Operating loss for Q3 2024 was $3.2 million vs. operating income of $0.1 million in Q3 2023, mainly due to decreased gross profit in Security and increased G&A expenses.
• Reduced inventory by over $1 million in the fiscal year.
• Vicon team pushing deployment of new technologies and products with investments in sales/marketing, expecting growth with launch of Anavio cloud security platform and new tech releases in FY2025.
• Industrial Services segment had strong quarter with orders from leading companies, building growth pipeline for record revenue year.
• Completed a $10 million upsized underwritten public offering to improve balance sheet and pay off indebtedness.

In the third quarter of 2024, total revenue was $14.7 million, flat year-over-year. The Security segment had revenues of $6.2 million in Q3 2024, a 31% decrease compared to prior year. The Industrial Services (AIS) segment saw revenues increase 49% to $8.5 million. The Security segment contributed approximately 42.2% of the total revenue ($6.2 million / $14.7 million), while the AIS segment contributed approximately 57.8% ($8.5 million / $14.7 million).

• Aim to achieve full year operating profit.
• AIS has potential for over 30% annual revenue growth in fiscal year 2024, with further growth in FY2025.
• Confident Vicon will see strong revenue growth in FY2025 with new platform and tech launches.
• Exploring acquisition opportunities to enhance market reach and service capabilities.

• Project delays in Security segment impacting revenue.
• Overall economic conditions affecting Security segment.
• One-time expenses including employee-related charges, legal expenses, and bad debt write-offs contributing to operating loss.

Q: Are there any questions from participants?

A: Operator mentioned no analyst or participant raised hands for questions. There are no further questions at this time.