Cemtrex Announces New Strategic Focus to Address Significant Near-Term Opportunities
May 04 2022 - 8:30AM
- Cemtrex Inc. (NASDAQ: CETX, CETXP), a
technology company driving innovation in Internet of Things (IoT),
security, machine vision & artificial intelligence, and
augmented & virtual reality, today announced a strategic shift
towards prioritizing its core businesses, in particular Vicon
Industries, its security technology brand to maximize shareholder
value, drive long term growth, and profitability. In conjunction
with the strategy shift to bolster its Advanced Technologies
segment, Cemtrex is exploring the divestiture of one or more
business units to support its refocus.
Chairman and CEO, Saagar Govil commented, “After
a thorough strategic review of our business units by management and
our Board of Directors we have decided to refocus our efforts on
our core businesses. We see enormous untapped potential in our
security business, Vicon, with escalating demand as end-users seek
a reliable source of video surveillance and access control
technologies fit for today’s highly dynamic environment. Vicon
continues to experience elevated demand for its security portfolio
from major customers, including a recent $1.2 million upgrade
order, validating its technology and reaffirming its upward growth
trend. We believe Vicon is on a strong path towards $5-10 million
of recurring revenue in the next three to five years as the
industry shifts to SaaS solutions leveraging AI and cloud
technology solutions. We believe this shift in focus to capture
significant near-term recurring revenue opportunities in Vicon will
maximize shareholder value over the next several years.”
“This review has also concluded that a more
focused approach to unlocking shareholder value should be evaluated
through the potential sale of one of more of our business units.
While we intend to prioritize our security business our Industrial
Services segment continues to be a strong source of cash flow with
high repeat business and a well-known reputation. We expect to see
continued growth in this segment driven by an increase in demand
for industrial contracting and predictive maintenance services, as
the industrial economy in the US continues to thrive.
“Looking ahead, we are committed to building
market leading technology that is impactful and moves consumers and
industry forward. We are highly focused on a return to
profitability in fiscal 2023 and believe this shift in strategy
will enable us to do that. We look forward to providing additional
announcements on these strategic initiatives in the months to
come,” concluded Govil.
About Cemtrex
Cemtrex, Inc. (CETX) is a leading multi-industry
technology company that is driving innovation in markets such as
Internet of Things (IoT), Augmented and Virtual Reality (AR &
VR), and Artificial Intelligence and Computer Vision (AI & CV)
in a wide range of sectors, including but not limited to consumer
products, industrial manufacturing, digital applications, and
intelligent security & surveillance systems.
www.cemtrex.com
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 the closing of
the offering, gross proceeds from the offering, our new product
offerings, expected use of proceeds, 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. Statements made herein are as of the date of
this press release and should not be relied upon as of any
subsequent date. These risks and uncertainties are 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.
Investor Relations
Chris Tyson
Executive Vice President – MZ North America
Direct: 949-491-8235
CETX@mzgroup.us
www.mzgroup.us
Cemtrex (NASDAQ:CETX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Cemtrex (NASDAQ:CETX)
Historical Stock Chart
From Apr 2023 to Apr 2024