Cemtrex Provides Additional Information Regarding Rights Offering
November 27 2018 - 8:35AM
- Cemtrex Inc. (Nasdaq: CETX, CETXP, CETXW), a
world-leading technology and manufacturing company, today provided
more information regarding its upcoming rights offering.
“We currently have a backlog of approximately 800 SmartDesks and
this offering will provide funds to help fulfill these orders by
getting 1500 SmartDesks delivered in our warehouse from our supply
chain in the coming weeks,” said Saagar Govil, CEO of Cemtrex.
“With 1500 SmartDesks on hand, we will also be able to accommodate
the requirements of new clients who want be part of our Enterprise
sales program and furthermore, we will be able to immediately
deliver any new orders, eliminating the wait that customers might
face. Once these 1500 SmartDesks are shipped, we will generate
revenue of approximately $7.5 million, and with 35% gross margins,
a hefty gross profit of $2.6 million. These funds will be
reinvested into the production of the next batch of
SmartDesks.”
Cemtrex is transitioning rapidly from a low-margin electronics
contract manufacturer to a high-margin, innovative technology
company with its own proprietary patent pending products. Cemtrex
has experienced five-year revenue growth of 58% CAGR and had fiscal
year 2017 sales of $120.6 million, up from 2013 sales of $12
million. The Company intends to spend $1-$2M in on-going R&D
expenses for fiscal year 2019. The Company anticipates that as
demand for the SmartDesk continues to increase this will offset the
R&D expenditure.
“The Desktop PC market has not seen any innovation in the last
30 years, and it’s truly a commoditized, mature industry that is
perfect for disruption. With our patent-pending, cutting-edge
product, the Company can really go out and disrupt this $80 billion
industry with an average price per unit of $5,000 and attractive
gross margins. Globally, there are about 100 million units sold
annually, and we think that in three years we can easily sell at
least 100,000 units. That would be approximately $500 million of
revenue for the company,” Govil said.
SmartDesk is gaining traction in the business community with the
Company’s recent focus on Enterprise customers. The Company has
received orders from notable organizations like the City of Atlanta
and VMware. The SmartDesk has generated orders from Fortune 500
companies like Black & Decker and United Airlines as well as
from government organizations and universities alike.
SmartDesk, introduced earlier this year, is the flagship IoT
product of Cemtrex. SmartDesk combines and reimagines the needs of
the modern office workstation in a sleek, clutter-free design. The
product includes 72 inches of touch display monitors, proprietary
patent-pending touch and gesture control, digital phone and webcam,
integrated document scanner, wireless smartphone charging, and a
built-in keyboard / trackpad with an electric-powered,
adjustable-height desk.
About CemtrexCemtrex, Inc. (NASDAQ: CETX) is a
diversified technology company driving innovation in a wide range
of sectors, including smart technology, virtual and augmented
realities, advanced electronic systems, industrial solutions, and
intelligent security systems. Cemtrex is the manufacturer of the
SmartDesk, the world’s most advanced workstation. Find us on the
web at www.cemtrex.com.
Safe Harbor StatementThis press release
contains “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995, including
statements relating to Cemtrex’s proposed offering of securities.
These forward-looking statements are based on management’s current
expectations and are subject to certain risks and uncertainties,
including those described in Cemtrex’s SEC periodic reports and
other filings, that could cause actual results to differ materially
from those set forth in or implied by such forward-looking
statements. Statements made herein are as of the date of this press
release and should not be relied upon as of any subsequent
date.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities, nor will there be any
sale of any securities referred to in this press release in any
state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of such state or jurisdiction. The rights offering
will be made only by means of prospectuses meeting the requirements
of the Securities Act of 1933, as amended.
Information Agent:
Okapi Partners LLC
Phone: 1-212-297-0720 (bankers and brokers) or 1-855-208-8903 (all others)
Email: info@okapipartners.com
Investor Relations
Cemtrex, Inc.
Phone: 631-756-9116
investors@cemtrex.com
General Inquiries
sales@cemtrex.com
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