Vicon Industries, Inc. (NYSE MKT:VII), a global producer of
end-to-end security solutions, today announced its financial
results for its second fiscal quarter ended March 31, 2017.
Vicon’s CEO John Badke said, "The Company’s results for the
quarter reflect an expected reduction in revenues, driven primarily
by decreased sales of our legacy product offerings. However, we
were pleased to launch our new Valerus video management system
(VMS) platform in the quarter, which has received very positive
feedback from the market. Significant enhancements to this
platform, as well as to the Company’s camera line, were featured at
the security industry’s largest annual trade show in early April
and will be available for release by the end of June 2017. We
believe that Valerus is the next generation enterprise level VMS
platform that embodies the ease of use, openness and flexibility
the market will come to demand from their overly complicated legacy
systems. We have also ramped up our sales and marketing activities
in anticipation of increasing market demand for our new
solutions."
In April 2017, the Company entered into an amended Credit
Agreement with its current lender, which essentially freed up $2
million of availability under its $6 million credit line that was
previously subject to a borrowing base formula, extended the
facility maturity date to April 2019 and relaxed its minimum
tangible net worth financial covenant. The Company expects to
continue to draw on this facility to finance its near term working
capital needs and is considering additional financing options.
Second Quarter Fiscal 2017 Financial Results
Revenues for the second quarter of fiscal 2017 decreased 25% to
$6.0 million as compared to $8.0 million in the second quarter of
fiscal 2016. The $2.0 million decrease in the current quarter
included a $1.6 million, or 26%, decrease in sales in the Americas
market and a $380,000, or 22%, decrease in EMEA market sales.
Revenues weakened across all market segments due principally to a
continuing reliance on legacy product offerings and the continuing
market effects of previously reported camera line issues. Order
intake for the current quarter decreased $518,000 to $6.8 million
as compared to $7.4 million in the second quarter of fiscal
2016.
Gross profit margins were 37.4% for the second quarter of fiscal
2017 as compared to 33.0% for the second quarter of fiscal 2016.
Prior year quarter margins were negatively impacted by recognition
of $150,000 (1.9%) of additional inventory provisions relating to
the rework and transition of the Company's IQinVision camera line
to a new contract manufacturing partner. Operating expenses for the
second quarter of fiscal 2017 decreased $7.0 million to $4.1
million compared with $11.1 million in the second quarter of fiscal
2016. In the prior year quarter, the Company charged off its entire
$6.0 million goodwill carrying value originating from the August
2014 IQinVision business combination. Excluding the effects of the
prior year quarter goodwill write-off, operating expenses decreased
$975,000 in the current quarter due to ongoing selling, general and
administrative cost reduction initiatives.
Net loss for the second quarter of fiscal 2017 was $1.9 million,
or $.20 per basic and diluted share, as compared to a net loss of
$7.7 million, or $.82 per basic and diluted share, in the second
quarter of fiscal 2016.
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 offices
in Yavne, Israel; the United Kingdom and San Juan Capistrano,
California. 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 our new product offerings.
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: our need for
additional financing; market acceptance of our products; our
ability to manufacture and develop effective products and
solutions; 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;
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.
Table of Operations
Vicon Industries, Inc.
Condensed Statements of
Operations
(Unaudited)
Three Months Ended Six Months Ended March 31,
March 31,
2017
2016
2017
2016
Net sales $ 6,003,000 $ 7,998,000 $ 12,608,000 $ 18,879,000 Gross
profit 2,246,000 2,639,000 4,819,000 6,910,000 Operating
expenses: Selling, general and administrative expense 2,802,000
3,726,000 5,483,000 7,657,000 Engineering and development expense
1,289,000 1,340,000 2,429,000 2,658,000 Goodwill and intangible
asset impairment — 6,016,000 — 6,016,000
Total operating expenses 4,091,000 11,082,000 7,912,000
16,331,000 Operating loss (1,845,000 ) (8,443,000 )
(3,093,000 ) (9,421,000 ) Gain on sale of building — 785,000
— 785,000 Loss before income taxes (1,903,000 ) (7,658,000 )
(3,205,000 ) (8,636,000 ) Income tax expense — —
— — Net loss $ (1,903,000 ) $
(7,658,000 ) $ (3,205,000 ) $ (8,636,000 )
Loss per
share:
Basic $ (.20 ) $ (.82 ) $ (.34 ) $ (.92 ) Diluted $ (.20 ) $ (.82 )
$ (.34 ) $ (.92 )
Shares used in
computing loss per share:
Basic 9,348,000 9,341,000 9,348,000 9,336,000 Diluted 9,348,000
9,341,000 9,348,000 9,336,000
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version on businesswire.com: http://www.businesswire.com/news/home/20170515006140/en/
Vicon Investor RelationsCindy Schneider,
631-650-6201IR@vicon-security.com
Vicon Industrial (CE) (USOTC:VCON)
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