Cemtrex, Inc. (CETX) Announces Results for the Third Quarter Ending June 30, 2020
August 13 2020 - 4:15PM
– Cemtrex Inc. (Nasdaq: CETX, CETXP, CETXW), a leading
technology company that is driving innovation in a wide range of
commercial sectors such as Internet of Things (IoT), Augmented and
Virtual Reality (AR & VR), and Artificial Intelligence and
Computer Vision (AI & CV), announced its financial results for
the quarter ending June 30, 2020.
Fiscal Third Quarter Highlights:
Nine Months Revenue: $32,774,797Nine Months EBITDA:
($1,167,965)Nine Months EBITDA Margin: (3.56%)Nine Months Gross
Margin: 43%Third Quarter Sales: $8,440,867Cash on Hand:
$12,939,493Total Assets: $62,826,021Total Stockholder’s Equity:
$32,509,875
Results of Operations:
|
|
For the Nine
Months Ending |
|
|
Jun 30 of
Each Year |
|
|
|
2020 |
|
|
|
2019 |
|
Total Revenues |
|
$ |
32,774,797 |
|
|
$ |
28,371,927 |
|
Total Operating (loss)/income |
|
|
(3,326,903) |
|
|
|
(4,450,293) |
|
Depreciation and amortization |
|
|
2,158,938 |
|
|
|
3,208,933 |
|
EBITDA (Non-GAAP) |
|
|
(1,167,965) |
|
|
|
(1,241,360) |
|
EBITDA Margin % |
|
|
(3.56%) |
|
|
|
(4.38%) |
|
Cemtrex’s Chairman and CEO, Saagar Govil, commented on the
results, “Our Company continued to perform well during the global
pandemic with only a modest decrease in revenue for the period
while the entire world remained largely closed. Our Company
remained fully operational, largely remotely, during the shutdown
but many customers were closed and postponed purchasing during this
June Quarter. For the nine-month period our year over year revenues
are up 16% and we believe that as the global shutdowns wind down we
will be able to see continued top line growth. Our Advanced
Technology bookings for July were better on a YoY basis which gives
us confidence in our overall outlook. Many of our customers who
were shut down for the last several months are now resuming their
operations and looking to pick up where they left off.”
“During the most recent quarter the Company continued its
progress on its exciting product roadmap. We released several new
products under our security technology brand, Vicon, including a
Thermal Camera for assisting in the detection of COVID-19 symptoms,
as well as a new line of cameras with on board AI based analytics
technology. We remain on track for the release of our new SmartDesk
later this year which we believe has strong potential due to the
enormous need for a solution like ours in the home office
segment.”
“The Company also received a major cash infusion of over $10
million from institutional investors during the period which has
bolstered the balance sheet and fueled the Company for positive
growth over the coming months. It has also provided the Company
with cash to pursue strategic acquisition opportunities. With a
strong cash position and many new product releases planned over the
next few months we believe the next 18 months will be an exciting
growth period for our Company. While uncertainties remain due to
the COVID-19 pandemic we remain cautiously optimistic looking
forward,” continued Mr. Govil.
For the Nine Months Ending June 30, 2020:
- Revenues: Total revenue for the nine months
ended June 3, 2020 and 2019 was $32,774,797 and $28,371,927,
respectively, an increase of $4,402,870, or 16%. Total revenue for
the three quarters increased, as compared to total revenue in the
same period last year, due to sales increases in the Advanced
Technologies Segment.
- Gross Profit: Gross Profit for the nine months
ended June 30, 2020 was $13,974,442 or 43% of revenues as compared
to gross profit of $11,052,395 or 39% of revenues for the nine
months ended June 30, 2019. Gross profit increased in the
nine months ended June 30, 2020, compared to the nine months ended
June 30, 2019 due to a shift by management in the last fiscal year
to focus on products with higher gross margins.
- Comprehensive Loss: The Company had a
comprehensive loss of $8,623,905 or 26% of revenues, for the
nine-month period ended June 30, 2020 as compared to a
comprehensive loss of $9,249,975 or 33% of revenues, for the nine
months ended June 30, 2019. Comprehensive loss decreased in
the first three quarters as compared to comprehensive loss in the
same period last year, as a result of the increased sales and
foreign currency translation gain.
Fiscal Third Quarter Results:
- Revenues: Total revenue for the three months
ended June 30, 2020 and 2019 was $8,440,867 and $10,928,933,
respectively, a decrease of $2,488,066, or 23%. Total revenue
for the quarter decreased, as compared to total revenue in the same
period last year, due to shutdowns and limited operations of
businesses due to the COVID-19 crisis.
- Gross Profit: Gross Profit for the three
months ended June 30, 2020 was $3,279,852 or 39% of revenues as
compared to gross profit of $4,058,013 or 38% of revenues for the
three months ended June 30, 2019. Gross profit decreased in
the three months ended June 30, 2020, compared to the three months
ended June 30, 2019 due to lower sales, however the percentage
increase is due to a shift by management in the last fiscal year to
focus on products with higher gross margins.
- G & A: General and administrative expenses
for the three months ended June 30, 2020 increased $1,549,578 or
38% to $5,606,659 from $4,057,081 for the three months ended June
30, 2019. General and administrative expenses as a percentage of
revenue was 66% and 37% of revenues for the three-month periods
ended June 30, 2020 and 2019. The increase in General and
Administrative Expenses both as a percentage of revenue is the
reduction in sales from the same quarter last year and on a dollar
per dollar basis is the result of increased salaries expense.
- R & D: Research and Development expenses
for the three months ended June 30, 2020 was $331,936 compared to
$285,583 for the three months ended June 30, 2019. Research
and Development expenses are primarily related to the Advanced
Technologies Segment’s development of proprietary technology and
further developments of the SmartDesk and Artificial Intelligence
(AI) connected with security and surveillance systems
software.
- Comprehensive Income / Loss: The Company had a
comprehensive loss of $4,149,335 or 49% of revenues, for the
three-month period ended June 30, 2020 as compared to a
comprehensive loss of $3,103,266 or 28% of revenues, for the three
months ended June 30, 2019. Comprehensive loss increased in
the third quarter as compared to comprehensive loss in the same
period last year, as a result of the reduction in sales due to the
COVID-19 crisis.
About Cemtrex
Cemtrex, Inc. (CETX) is a technology company specializing in the
development of Internet of Things (IoT), artificial Intelligence
(AI) and Virtual Reality (VR) enabled technologies that's driving
innovation in a wide range of sectors, including consumer
products, industrial manufacturing, digital applications, and
intelligent security & surveillance systems.www.cemtrex.com
Safe Harbor Statement This press release
contains "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995, including
statements relating to our new product offerings or any proposed
fundraising activities. 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: operational losses and negative cash flows; any
need for additional financing; market acceptance of our products;
our ability to manufacture and develop effective products and
solutions; indebtedness to our lenders; 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 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; and, other
factors discussed under the heading "Risk Factors" contained in our
Form 10-K filed with the Securities and Exchange Commission. 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.
Use of Non-GAAP Measures: Earnings before interest, taxes, and
depreciation and amortization (EBITDA) and Adjusted EBITDA are
non-GAAP measures. In defining Non-GAAP EBITDA, the Company
excludes the impact of non-cash stock-based compensation and other
non-recurring items, such as R&D expenses and equity interest
loss. EBITDA has limitations as an analytical tool and should not
be evaluated in isolation or as a substitute for analysis of
results as reported under U.S. GAAP. Management utilizes this
metric as a basis for evaluating our ongoing operations, and
believes investors' understanding of our performance is enhanced by
including this non-GAAP financial measure as a reasonable basis for
evaluating our ongoing results of operations, without the effects
of interest, taxes, depreciation, and amortization and other
non-recurring expenses.
For further information, please contact:
Investor Relations
Cemtrex, Inc.
Phone: 631-756-9116
investors@cemtrex.com
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