Vicon Industries, Inc. (NYSE MKT:VII), a global producer of
video management systems, today announced its financial results for
the fourth quarter ended September 30, 2015.
Eric Fullerton, Vicon’s CEO said, “The Company completed its
first fiscal year since its merger with IQinVision on August 29,
2014 and ended the year with improved financial results. The
Company’s financial results for the quarter were in line with
expectations for this historically strong seasonal period. Revenues
increased 22% to $12.7 million compared with the prior year period,
which included partially combined results.
“Revenue improvements were wholly attributable to our Americas
market segment, while our EMEA market segment continued to feel the
effects of weak European economies. The Company continues to drive
an aggressive product and market development plan for fiscal 2016.
As previously stated, Vicon management continues to strengthen
relationships in its key sales channels, align its product
offerings to better serve its markets and focus on growing new
market segments.”
Mr. Fullerton concluded, “While we are pleased to close out
fiscal 2015 with much improved operating results, we need to
maintain our focus on ongoing market challenges and execution of
key strategic initiatives.”
Fourth Quarter Fiscal 2015 Financial Results
The financial results for the fourth quarter of fiscal 2015
include the results of operations for IQinVision, Inc. for the full
quarter as compared with only the post-acquisition period (August
29, 2014 to September 30, 2015) in the prior year quarter.
Revenues for the fourth quarter of fiscal 2015 increased 22% to
$12.7 million as compared to $10.5 million in the fourth quarter of
fiscal 2014. The $2.3 million increase in current quarter included
a $2.6 million, or 32%, increase in sales in the Americas market
and a $320,000, or 13%, decline in EMEA market sales. The addition
of the IQinVision camera brands were a major contributor to the
Americas revenues gains, while the EMEA market segment continued to
be impacted by planned cost restructuring initiatives. Order intake
for the current quarter increased $1.2 million to $11.0 million as
compared to $9.8 million in the fourth quarter of fiscal 2014.
Gross profit margins for the fourth quarter of fiscal 2015
increased to 41.5% as compared to 30.4% in the fourth quarter of
fiscal 2014. The prior year quarter included certain non-recurring
inventory charges aggregating $593,000 or 5.7%. Excluding these
impacts, current quarter margins improved by 5.4% due in part to
contributions from the Company’s proprietary IQeye branded camera
line.
Operating expenses for the fourth quarter of fiscal 2015
decreased $486,000 to $5.8 million compared to $6.2 million in the
fourth quarter of fiscal 2014. The prior year quarter included
$483,000 of merger related costs, $520,000 of severance charges
relating to terminated employees and $300,000 of patent litigation
expense. The periods presented are not otherwise comparative as the
prior year quarter only included IQinVision post-acquisition
expenses for the period of August 29, 2014 to September 30,
2014.
Net loss for the fourth quarter of fiscal 2015 was $467,000, or
$.05 per basic and diluted share, as compared to a net loss of $3.1
million, or $.50 per basic and diluted share, in the fourth quarter
of fiscal 2014. Adjusted non-GAAP net loss for the fourth quarter
of fiscal year 2015 was $202,000, or $.02 per basic and diluted
share, as compared to adjusted non-GAAP net loss of $1.7 million,
or $.28 per basic and diluted share, in the fourth quarter of
fiscal year 2014. Please refer to the presentation at the end of
the table of operations for a reconciliation of our fourth quarter
GAAP net loss to our adjusted non-GAAP net loss for such
periods.
Net loss for fiscal year 2015 was $5.2 million, or $.57 per
basic and diluted share, as compared to a net loss of $7.9 million,
or $1.61 per basic and diluted share, for fiscal year 2014.
Adjusted non-GAAP net loss for fiscal year 2015 was $4.2 million,
or $.45 per basic and diluted share, as compared to adjusted
non-GAAP net loss of $5.8 million, or $1.18 per basic and diluted
share, for fiscal year 2014. Please refer to the presentation at
the end of the table of operations for a reconciliation of our
fiscal year 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 global restructuring
plan expectations, (ii) our technology 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.
-Financial Tables on Following Pages-
Table of Operations
Vicon Industries, Inc.
Condensed Statements of
Operations
(Unaudited) Three Months Ended Fiscal Year Ended
September 30, September 30,
2015
2014 2015 2014 Net sales $
12,737,000 $ 10,476,000 $ 44,884,000 $ 34,878,000 Gross profit
5,287,000 3,183,000 17,646,000 12,154,000 Operating
expenses: Selling, general and administrative expense 4,457,000
3,694,000 17,662,000 13,549,000 Engineering and development expense
1,297,000 1,242,000 5,063,000 4,595,000 Merger and related expense
— 483,000 — 1,077,000 Restructuring charges — 520,000 — 520,000
Patent litigation expense — 300,000 —
300,000 Total operating expenses 5,754,000 6,239,000
22,725,000 20,041,000 Operating loss (467,000 ) (3,056,000 )
(5,079,000 ) (7,887,000 ) Loss before income taxes (467,000 )
(3,106,000 ) (5,218,000 ) (7,925,000 ) Income tax benefit —
(24,000 ) — — Net loss $ (467,000 )
$ (3,082,000 ) $ (5,218,000 ) $ (7,925,000 )
Loss per
share:
Basic $ (.05 ) $ (.50 ) $ (.57 ) $ (1.61 ) Diluted $ (.05 ) $ (.50
) $ (.57 ) $ (1.61 )
Shares used in
computing loss per share:
Basic 9,202,000 6,144,000 9,153,000 4,919,000 Diluted 9,202,000
6,144,000 9,153,000 4,919,000
The Company evaluates performance based on net loss and per
share results excluding stock compensation expense, amortization of
acquired intangible assets, restructuring charges and other
non-recurring expenses, 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 Fiscal Year Ended
September 30, September 30,
2015
2014 2015 2014 GAAP
net loss $ (467,000 ) $ (3,082,000 ) $ (5,218,000 ) $ (7,925,000 )
Adjusting items: Stock compensation expense 157,000 59,000 625,000
155,000 Amortization of acquired intangible assets 108,000 35,000
432,000 35,000 Restructuring charges — 520,000 — 520,000 Merger
related costs — 483,000 — 1,077,000 Patent litigation costs —
300,000 — 300,000
Adjusted non-GAAP net loss $ (202,000 ) $ (1,685,000 ) $
(4,161,000 ) $ (5,838,000 ) Net loss per share -
diluted $ (.05 ) $ (.50 ) $ (.57 ) $ (1.61 ) Adjusting items: Stock
compensation expense .02 — .07 .03 Amortization of acquired
intangible assets .01 .01 .05 .01 Restructuring charges — .08 — .11
Merger related costs — .08 — .22 Patent litigation costs —
.05 — .06 Adjusted non-GAAP net
loss per share $ (.02 ) $ (.28 ) $ (.45 ) $ (1.18 )
Diluted shares outstanding 9,202,000 6,144,000 9,153,000
4,919,000
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version on businesswire.com: http://www.businesswire.com/news/home/20151211005922/en/
Vicon Investor RelationsCindy Schneider,
631-650-6201IR@vicon-security.com
Vicon Industrial (CE) (USOTC:VCON)
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