Vicon Industries, Inc. (NYSE MKT:VII), a global producer of
end-to-end security solutions, today announced its financial
results for the third quarter ended June 30, 2016.
The Company recently announced the resignation of its Chief
Executive Officer, Eric Fullerton, and the appointment of John M.
Badke, the Company’s Senior Vice President of Finance and Chief
Financial Officer, to serve as its interim CEO. Mr. Badke, who
joined the Company in 1992, will also continue to serve as the
Company’s Chief Financial Officer.
Mr. Badke said, “The Company has a very experienced global
management team and will continue to focus on the launch of its new
Valerus Video Management System platform. Revenues for the quarter
declined 19% to $9.5 million as we continue to experience weakness
in our America’s market segment. However, we were pleased to report
a 14% revenue improvement in our EMEA market segment, while at the
same time, having completed a significant cost restructuring of
this operation. The Company has also substantially resolved its
previously reported camera line issues, but believes its market
impact may linger for the near term. The cost restructuring plan
previously announced by the Company has been effectively
implemented, and we expect to report further expense level
reductions as a result of these efforts in our fourth quarter
ending September 30, 2016. On August 18, 2016, the Company entered
into a new credit agreement with its current lender, which
increases its $3 million revolving line of credit to $6 million.
This facility, which matures on October 2, 2018, will be used for
general working capital purposes to support the Company’s near term
operating plans.”
“Finally, we continue to close in on our long awaited Valerus
product launch and look towards its positive market impact.
Designed to deliver the ultimate ease-of-use experience, this new
platform will serve as the core foundation for Vicon’s long term
technology vision.”
Third Quarter Fiscal 2016 Financial Results
Revenues for the third quarter of fiscal 2016 decreased 19% to
$9.5 million as compared to $11.7 million in the third quarter of
fiscal 2015. The $2.2 million decrease in the current quarter
included a $2.5 million, or 26%, decrease in sales in the Americas
market and a $313,000, or 14%, increase in EMEA market sales. The
Americas market was negatively impacted by previously reported
camera line production issues. Order intake for the current quarter
decreased $2.6 million to $8.9 million as compared to $11.5 million
in the third quarter of fiscal 2015.
Gross profit margins were 40.0% for the third quarters of both
fiscal 2016 and fiscal 2015. Operating expenses for the third
quarter of fiscal 2016 decreased $859,000 to $4.6 million compared
with $5.5 million in the third quarter of fiscal 2015 due to
ongoing staffing and other cost reduction initiatives.
Net loss for the third quarter of fiscal 2016 was $843,000, or
$.09 per basic and diluted share, as compared to a net loss of
$800,000, or $.09 per basic and diluted share, in the third quarter
of fiscal 2015. Adjusted non-GAAP net loss for the third quarter of
fiscal 2016 was $572,000, or $.06 per basic and diluted share, as
compared to adjusted non-GAAP net loss of $535,000, or $.06 per
basic and diluted share, in the third quarter of fiscal 2015.
Please refer to the presentation at the end of the table of
operations for a reconciliation of our third quarter GAAP net loss
to our adjusted non-GAAP net loss for such periods.
About Vicon
Vicon Industries, Inc. (NYSE MKT: VII) is a global producer of
video management systems and system components for use in security,
surveillance, safety and communication applications by a broad
range of end users. Vicon’s product line consists of various
elements of a video system, including video management software,
recorders and storage devices and capture devices (cameras).
Headquartered in Hauppauge, New York, the Company also has
principal offices in San Juan Capistrano, California and the United
Kingdom. More information about Vicon, its products and services is
available at www.vicon-security.com.
Special Note Regarding Forward-looking Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements relating to (i) our restructuring plan
expectations, (ii) our technology, new product launch and market
channel plans and (iii) our future cash flow and strategies. These
forward-looking statements are based on management's current
expectations and are subject to certain risks and uncertainties
that could cause actual results to differ materially from those set
forth in or implied by such forward looking statements. These risks
and uncertainties include, but are not limited to: current and
future economic conditions that may adversely affect our business
and customers; potential fluctuation of our revenues and
profitability from period to period which could result in our
failure to meet expectations; our ability to maintain adequate
levels of working capital; our ability to successfully maintain the
level of operating costs; our ability to obtain financing for our
future needs should there be a need; our ability to incentivize and
retain our current senior management team and continue to attract
and retain qualified scientific, technical and business personnel;
our ability to expand our product offerings or to develop other new
products and services; our ability to generate sales and profits
from current product offerings; rapid technological changes and new
technologies that could render certain of our products and services
to be obsolete; competitors with significantly greater financial
resources; introduction of new products and services by
competitors; challenges associated with expansion into new markets;
failure to stay in compliance with all applicable NYSE MKT
requirements that could result in a delisting of our common stock;
and, other factors discussed under the heading "Risk Factors"
contained in our Registration Statement on Form S-4 filed with the
Securities and Exchange Commission on May 29, 2014. All information
in this press release is as of the date of the release and we
undertake no duty to update this information unless required by
law.
Table of Operations
Vicon Industries, Inc.
Condensed Statements of
Operations
(Unaudited)
Three Months Ended Nine Months Ended June 30, June 30,
2016 2015 2016
2015 Net sales $ 9,527,000 $ 11,701,000
$ 28,405,000 $ 32,147,000 Gross profit 3,808,000 4,684,000
10,718,000 12,359,000 Operating expenses: Selling, general
and administrative expense 3,333,000 4,158,000 10,989,000
12,372,000 Engineering and development expense 1,293,000 1,326,000
3,951,000 4,026,000 Goodwill impairment — — 6,016,000 —
Restructuring charges — — — 573,000
Total operating expenses 4,626,000 5,484,000 20,956,000 16,971,000
Operating loss (818,000 ) (800,000 ) (10,238,000 )
(4,612,000 ) Gain on sale of building — — 785,000 —
Loss before income taxes (843,000 ) (800,000 ) (9,478,000 )
(4,751,000 ) Income tax expense — — —
— Net loss $ (843,000 ) $ (800,000 ) $
(9,478,000 ) $ (4,751,000 )
Loss per
share:
Basic $ (.09 ) $ (.09 ) $ (1.01 ) $ (.52 ) Diluted $ (.09 ) $ (.09
) $ (1.01 ) $ (.52 )
Shares used in
computing loss per share:
Basic 9,344,000 9,155,000 9,339,000 9,136,000 Diluted 9,344,000
9,155,000 9,339,000 9,136,000
The Company evaluates performance based on net loss and per
share results excluding stock compensation expense, the charge off
and amortization of acquired intangible assets, restructuring
charges and other non-recurring expenses and gains, which it
believes is useful to investors in evaluating ongoing results since
they are either non-cash or non-recurring in nature. Reporting
these adjusted results is not in accordance with U.S. generally
accepted accounting principles (GAAP). The following table provides
a reconciliation of reported net loss and related per share results
to adjusted non-GAAP net loss and related per share results.
(Unaudited) (Unaudited) Three Months
Ended Nine Months Ended June 30, June 30,
2016
2015 2016
2015 GAAP net loss $ (843,000 ) $ (800,000 ) $
(9,478,000 ) $ (4,751,000 ) Adjusting items: Stock compensation
expense 142,000 157,000 441,000 468,000 Amortization of acquired
intangible assets 129,000 108,000 388,000 324,000 Restructuring
charges — — — 573,000 Gain on sale of building — — (785,000 ) —
Goodwill impairment — — 6,016,000 —
Adjusted non-GAAP net loss $ (572,000 ) $ (535,000 ) $ (3,418,000 )
$ (3,386,000 ) Net loss per share - diluted $ (.09 ) $ (.09
) $ (1.01 ) $ (.52 ) Adjusting items: Stock compensation expense
.02 .02 .05 .05 Amortization of acquired intangible assets .01 .01
.04 .04 Restructuring charges — — — .06 Gain on sale of building —
— (.08 ) — Goodwill impairment — — .64 —
Adjusted non-GAAP net loss per share $ (.06 ) $ (.06 ) $
(.37 ) $ (.37 ) Diluted shares outstanding 9,344,000
9,155,000 9,339,000 9,136,000
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version on businesswire.com: http://www.businesswire.com/news/home/20160819005684/en/
Vicon Investor RelationsCindy Schneider,
631-650-6201IR@vicon-security.com
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