Cemtrex Reports Fiscal Year 2017 Second Quarter Results
May 11 2017 - 8:35AM
Cemtrex (Nasdaq: CETX, CETXP, CETXW), a world leading industrial
and manufacturing leader, today reported its financial results for
the three-month and six-month periods ended March 31, 2017.
“We reported a 61% increase in total revenue to $30.5
million for the second quarter of fiscal year 2017. This growth was
driven organically and through the acquisitions we completed within
the last year. There are significant opportunities for us to
continue to grow in fiscal 2017 and beyond as we make additional
strategic investments in our existing businesses and look to
complete synergistic acquisitions,” stated Saagar Govil, Chairman
and CEO of Cemtrex.
“Looking ahead, customers’ programs are steadily filling our
industrial and electronics manufacturing pipelines for the
remainder of the year, putting us on track to maintain planned
growth for the balance of fiscal year 2017.”
“As Cemtrex continues to grow, we are positioned to build
shareholder value even further. We do not believe the
valuation of the Company’s stock fully represents the progress we
have made over the past year. As a result, the Board of Directors
utilized different financial tools, including a stock buyback
program and paying dividends to common and preferred shareholders.
We believe these actions benefit our existing shareholders, while
also attracting a broader shareholder base.”
Q2 FY 2017 Business Highlights and Financial
Highlights
- Total Revenue for Q2 2017 increased 61% to
$30.5 million, compared to $18.9 million for Q2 2016. This increase
was primarily due to the acquisition of Periscope on May 31, 2016.
- Industrial Products & Services (IPS)
Revenue for Q2 2017 increased 19% to $15.3 million,
compared to $12.9 million for Q2 2016. The increase was primarily
due to increased shipment of goods and execution of projects.
- Electronics Manufacturing Services (EMS)
Revenue for Q2 2017 increased by 152% to $15.2 million,
compared to $6.0 million for Q2 2016. This increase was primarily
due to the acquisition of Periscope GmbH, an electronics
manufacturing solutions business.
- Gross Margin for Q2 2017 was 31%, compared to
31% for Q2 2016.
- Operating Margin for Q2 2017 decreased to 2.5%
compared to 4.7% for Q2 2016. This is attributable to an increase
in operating expenses to $8.6 million for Q2 2017, compared to $4.9
million for Q2 2016, which includes an increase of sales, marketing
and professional service costs for the 2017 period.
- Net Income for Q2 2017 was $413,468, or 0.04
per share, compared to $829,896, or 0.10 per share for Q2 2016.
This decrease was due to increase sales and marketing expenses in
the second quarter, loss on disposal of assets and one time
litigation expenses.
- Cash and Cash equivalents were $15.9 million
and the book value was $3.38 per share at March 31, 2017.
Six Month 2017 Financial Highlights
- Total Revenue for the six months ended March
31, 2017 increased 86% to $59.9 million, compared to $32.2 million
for the same period in 2016. This increase was primarily due to the
acquisitions of Advanced Industrial Services (AIS) and Periscope.
- IPS Revenue for the six months ended March 31,
2017 increased 38% to $28.6 million, compared to $20.7 million for
the same period in 2016. The increase was primarily due to the
acquisition of AIS on December 15, 2015.
- EMS Revenue for the six months ended March 31,
2017 increased 173% to $31.3 million, compared to $11.5 for the
same period in 2016. The primary reason for increased sales was due
to the acquisition of Periscope.
- Gross Margin for the six months ended March
31, 2017 was 32%, compared to 30% for the same period in 2016.
- Operating Margin for the six months ended
March 31, 2017 increased to 5% to 4% for the six months ended March
31, 2016. This increase reflects higher revenue for the 2017
period, which offset the increase in operating costs to $16.3
million, compared to $8.3 million for the same period in 2016.
- Net Income for the six months ended March 31,
2017 increased 20% to $1.8 million, or $0.18 per share, compared to
$1.5 million, or $0.09 per share for the same period in 2016. This
increase was primarily due to the acquisitions of AIS and
Periscope.
Conference Call and Webcast Information
Cemtrex will host a conference call with the investment
community on Thursday, May 11th at 11:00 a.m. Eastern Time
featuring remarks by Saagar Govil, Chairman and CEO of Cemtrex. The
dial-in numbers for the conference call are 877-524-8416
(Toll-Free) or 412-902-1028 (Toll). Please call at least five
minutes before the scheduled start time.
For interested individuals unable to join the conference call, a
replay of the call will be available through May 25, 2017, at
877-660-6853 (Toll-Free) or 201-612-7415 (Toll). Participants must
use the following code to access the replay of the call:
13661064.
Cemtrex will also offer a live and archived webcast of the
conference call, accessible from the “Investor Relations” section
of the Company’s website at
http://www.cemtrex.com/investor-relations/. The online
archive of the webcast will be available for 30 days following the
call.
About Cemtrex
Cemtrex Inc. (CETX) is a global, diversified industrial and
manufacturing company that provides a wide array of solutions to
meet today’s technology challenges and is rapidly growing through
acquisitions. Cemtrex provides: manufacturing services of advanced
custom engineered electronics, industrial contracting services,
monitoring instruments for industrial processes and environmental
compliance, and equipment for controlling particulates, hazardous
pollutants and greenhouse gases used in carbon trading
globally. @Cemtrex
Safe Harbor Statement
This press release contains forward-looking statements. Actual
results could differ materially from those projected in the
forward-looking statements as a result of a number of risks and
uncertainties. Statements made herein are as of the date of this
press release and should not be relied upon as of any subsequent
date. This release may contain non-GAAP financial information and
are not calculated or presented in accordance with US GAAP. The
Company believes that the presentation of non-GAAP financial
measures provides useful information to management and investors
regarding underlying trends in its consolidated financial condition
and results of operations. The Company’s management regularly uses
these supplemental non-GAAP financial measures internally to
understand, manage and evaluate the Company’s business and to make
operating decisions.
For further information, please contact:
Investor Relations
Cemtrex, Inc.
Phone: 631-756-9116
investors@cemtrex.com
Cemtrex (NASDAQ:CETX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Cemtrex (NASDAQ:CETX)
Historical Stock Chart
From Apr 2023 to Apr 2024