Brooklyn, NY, May 15, 2025 (GLOBE NEWSWIRE) -- - Cemtrex Inc. (NASDAQ: CETX, CETXP), an advanced security technology and industrial services company, has reported its financial and operational results for the fiscal second quarter ended March 31, 2024.
Key Highlights for Second Fiscal Quarter 2025
- Revenue increased 59% to $27.3 million, compared to revenue in the prior year quarter of $17.2 million.
- Operating Income totaled $4.6 million, compared to an operating loss of $1 million in Q2 FY 2024.
- Net Income for the period was $8.4 million, compared to a net loss of $1.5 million in Q2 FY 2024.
- Gross profit margin increased to 45%, up from 40% in the prior year period.
- Stockholders equity rose to $6.4 million, up from $4.7 million at September 30th 2024.
Management Commentary
Cemtrex Chairman and CEO, Saagar Govil, commented on the results: "We are extremely pleased with our strong second quarter performance, which reflects our team's sharp focus on execution and margin improvement. Both operating segments contributed to robust revenue growth, and we delivered a return to profitability on both an operating and net income basis. The improvement in gross margins, combined with disciplined expense management, enabled us to post over $8 million in net income this quarter. We believe this result marks an inflection point for Cemtrex.
"At Vicon, our Security segment, we benefited from the initial shipments of a record $10.4 million order and from the ramp-up of our new NEXT Modular Sensor System, which is now in full production. Our efforts to expand our presence in international markets are also beginning to show progress, with recent STQC certification in India positioning us for long-term growth in that region. Meanwhile, our Industrial Services segment, AIS, delivered solid 13% year-over-year growth and continues to execute well on large infrastructure and industrial projects."
"We remain laser-focused on delivering shareholder value through improved profitability, strategic innovation, and operational discipline. With a strengthening balance sheet and a growing backlog, we believe we are positioned to sustain momentum through the second half of the fiscal year, and remain optimistic that fiscal 2025 financial performance will surpass fiscal 2024."
Segment Highlights:
Vicon Industries:
- Revenue grew 110% year-over-year to $17.0 million, driven by execution of a large government order and increased demand for AI-enhanced security solutions.
- Gross margin improved to 52% from 51% in the prior year quarter.
- Operating income for the segment totaled $4.3 million, compared to a loss of $0.7 million a year ago.
Advanced Industrial Services:
- Revenue increased 13% to $10.3 million, up from $9.1 million in the prior year period.
- Gross profit grew to $3.4 million, with gross margin improving to 33%.
- Operating income rose to $0.9 million from $0.7 million in Q2 FY2024.
| Metric | Q2 FY2025 | Q2 FY2024 | % Change | ||||
| Revenue | $27.3M | $17.2M | +59% | ||||
| Gross Profit | $12.2M | $6.9M | +75% | ||||
| Gross Margin | 45% | 40% | +500bps | ||||
| Operating Income | $4.6M | ($1.0M) | N/A | ||||
| Net Income to CETX Shareholders | $8.4M | ($1.5M) | N/A | ||||
| EPS (Basic & Diluted) | $4.10 | ($3,054.05) | N/A | ||||
As of March 31, 2025, cash and cash equivalents were $4.5 million, and total assets were $46.2 million. Inventories decreased to $6.1 million at March 31, 2025, from $7.0 million at September 30, 2024. Stockholders' equity improved to $6.4 million, exceeding Nasdaq's minimum continued listing standards.
About Cemtrex
Cemtrex, Inc. (Nasdaq: CETX) is a diversified technology company operating in the Security and Industrial sectors. Its Security segment, led by Vicon Industries, provides advanced video management software, high-performance security cameras, and integrated surveillance solutions for enterprise, government, and critical infrastructure. The Industrial segment, through Advanced Industrial Services (AIS), delivers expert rigging, millwrighting, process piping, and equipment installation services to manufacturers nationwide. With a focus on innovation, execution, and strategic growth, Cemtrex is committed to enhancing safety, efficiency, and value for its customers and shareholders.
For more information visit 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.
Cemtrex, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
| (Unaudited) | ||||||||
| March 31, | September 30, | |||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 4,538,405 | $ | 3,897,511 | ||||
| Restricted cash | 1,527,628 | 1,522,881 | ||||||
| Trade receivables, net | 12,715,992 | 11,159,676 | ||||||
| Trade receivables, net - related party | 550,613 | 685,788 | ||||||
| Inventory, net | 6,136,765 | 6,988,529 | ||||||
| Contract assets, net | 1,156,620 | 985,207 | ||||||
| Prepaid expenses and other current assets | 2,026,088 | 1,456,687 | ||||||
| Total current assets | 28,652,111 | 26,696,279 | ||||||
| Property and equipment, net | 9,813,887 | 9,133,578 | ||||||
| Right-of-use operating lease assets | 1,676,614 | 1,933,378 | ||||||
| Royalties receivable, net - related party | 272,423 | 456,611 | ||||||
| Goodwill | 3,708,347 | 3,708,347 | ||||||
| Other | 2,113,768 | 2,187,265 | ||||||
| Total Assets | $ | 46,237,150 | $ | 44,115,458 | ||||
| Liabilities & Stockholders' Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 4,001,843 | $ | 4,520,173 | ||||
| Sales tax payable | 3,970 | 73,024 | ||||||
| Revolving line of credit | 2,867,425 | 3,125,011 | ||||||
| Current maturities of long-term liabilities | 9,301,045 | 4,732,377 | ||||||
| Operating lease liabilities - short-term | 829,644 | 832,823 | ||||||
| Deposits from customers | 182,855 | 408,415 | ||||||
| Accrued expenses | 2,764,172 | 1,393,902 | ||||||
| Accrued payable on inventory in transit | 242,303 | 640,450 | ||||||
| Contract liabilities | 1,924,425 | 1,254,204 | ||||||
| Deferred revenue | 1,179,536 | 1,297,616 | ||||||
| Accrued income taxes | 277,763 | 314,827 | ||||||
| Total current liabilities | 23,574,981 | 18,592,822 | ||||||
| Long-term liabilities | ||||||||
| Long-term debt | 9,492,824 | 13,270,178 | ||||||
| Long-term operating lease liabilities | 902,223 | 1,159,204 | ||||||
| Other long-term liabilities | 282,200 | 274,957 | ||||||
| Deferred Revenue - long-term | 509,882 | 658,019 | ||||||
| Warrant liabilities | 4,747,468 | 5,199,436 | ||||||
| Total long-term liabilities | 15,934,597 | 20,561,794 | ||||||
| Total liabilities | 39,509,578 | 39,154,616 | ||||||
| Commitments and contingencies | - | - | ||||||
| Stockholders' equity | ||||||||
| Preferred stock, $0.001 par value, 10,000,000 shares authorized, Series 1, 3,000,000 shares authorized, 2,579,994 shares issued and 2,515,894 shares outstanding as of March 31, 2025 and 2,456,827 shares issued and 2,392,727 shares outstanding as of September 30, 2024 (liquidation value of $10 per share) | 2,580 | 2,457 | ||||||
| Series C, 100,000 shares authorized, 50,000 shares issued and outstanding at March 31, 2025 and September 30, 2024 | 50 | 50 | ||||||
| Common stock, $0.001 par value, 70,000,000 shares authorized, 1,784,581 shares issued and outstanding at March 31, 2025 and 14,176 shares issued and outstanding at September 30, 2024 | 1,785 | 14 | ||||||
| Additional paid-in capital | 95,879,333 | 73,262,536 | ||||||
| Accumulated deficit | (91,726,811 | ) | (71,355,386 | ) | ||||
| Treasury stock, 64,100 shares of Series 1 Preferred Stock at March 31, 2025, and September 30, 2024 | (148,291 | ) | (148,291 | ) | ||||
| Accumulated other comprehensive income | 2,394,376 | 2,949,297 | ||||||
| Total Cemtrex stockholders' equity | 6,403,022 | 4,710,677 | ||||||
| Non-controlling interest | 324,550 | 250,165 | ||||||
| Total liabilities and stockholders' equity | $ | 46,237,150 | $ | 44,115,458 | ||||
Cemtrex, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
| For the three months ended | For the six months ended | |||||||||||||||
| March 31, 2025 | March 31, 2024 | March 31, 2025 | March 31, 2024 | |||||||||||||
| Revenues | $ | 27,250,269 | $ | 17,159,595 | $ | 40,990,168 | $ | 34,037,761 | ||||||||
| Cost of revenues | 15,084,814 | 10,220,179 | 23,122,777 | 20,015,946 | ||||||||||||
| Gross profit | 12,165,455 | 6,939,416 | 17,867,391 | 14,021,815 | ||||||||||||
| Operating expenses | ||||||||||||||||
| General and administrative | 6,770,742 | 7,020,157 | 13,864,031 | 13,992,123 | ||||||||||||
| Research and development | 777,889 | 951,400 | 1,667,972 | 1,800,205 | ||||||||||||
| Total operating expenses | 7,548,631 | 7,971,557 | 15,532,003 | 15,792,328 | ||||||||||||
| Operating income/(loss) | 4,616,824 | (1,032,141 | ) | 2,335,388 | (1,770,513 | ) | ||||||||||
| Other (expense)/income | ||||||||||||||||
| Other income, net | (150,165 | ) | 144,765 | (115,192 | ) | 223,176 | ||||||||||
| Interest expense | (452,998 | ) | (592,804 | ) | (936,911 | ) | (1,176,487 | ) | ||||||||
| Loss on exercise of warrant liabilities | - | - | (15,796,105 | ) | - | |||||||||||
| Changes in fair value of warrant liability | 4,707,374 | - | (5,312,838 | ) | - | |||||||||||
| Total other income/(expense), net | 4,104,211 | (448,039 | ) | (22,161,046 | ) | (953,311 | ) | |||||||||
| Net income/(loss) before income taxes | 8,721,035 | (1,480,180 | ) | (19,825,658 | ) | (2,723,824 | ) | |||||||||
| Income tax expense | 110,525 | 100,004 | 231,063 | 170,755 | ||||||||||||
| Income/(loss) from Continuing operations | 8,610,510 | (1,580,184 | ) | (20,056,721 | ) | (2,894,579 | ) | |||||||||
| Income/(loss) from discontinued operations, net of tax | 26,969 | 10,463 | (240,319 | ) | 20,955 | |||||||||||
| Net income/(loss) | 8,637,479 | (1,569,721 | ) | (20,297,040 | ) | (2,873,624 | ) | |||||||||
| Less net income/(loss) in noncontrolling interest | 254,537 | (96,510 | ) | 74,385 | (192,919 | ) | ||||||||||
| Net income/(loss) attributable to Cemtrex, Inc. stockholders | $ | 8,382,942 | $ | (1,473,211 | ) | $ | (20,371,425 | ) | $ | (2,680,705 | ) | |||||
| Income/(loss) per share - Basic & Diluted | ||||||||||||||||
| Continuing Operations | $ | 4.10 | $ | (3,054.05 | ) | $ | (10.62 | ) | $ | (5,497.36 | ) | |||||
| Discontinued Operations | $ | 0.01 | $ | 20.80 | $ | (0.13 | ) | $ | 41.83 | |||||||
| Weighted Average Number of Shares-Basic & Diluted | 2,032,744 | 503 | 1,897,797 | 501 | ||||||||||||
Cemtrex, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| For the six months ended | ||||||||
| March 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash Flows from Operating Activities | ||||||||
| Net loss | $ | (20,297,040 | ) | $ | (2,873,624 | ) | ||
| Adjustments to reconcile net loss to net cash used by operating activities | ||||||||
| Depreciation and amortization | 648,109 | 673,190 | ||||||
| Loss on disposal of property and equipment | 19,668 | - | ||||||
| Noncash lease expense | 461,490 | 389,125 | ||||||
| Goodwill impairment | - | - | ||||||
| Bad debt expense | 10,572 | 35,213 | ||||||
| Contract modification - related party | 280,545 | - | ||||||
| Share-based compensation | 7,183 | 15,116 | ||||||
| Income tax expense | - | (96,750 | ) | |||||
| Shares issued to pay for services | - | 40,000 | ||||||
| Accrued interest on notes payable | 530,404 | 657,355 | ||||||
| Non-cash royalty income | (71,464 | ) | (26,564 | ) | ||||
| Amortization of original issue discounts on notes payable | 16,667 | - | ||||||
| Loan origination costs | 5,000 | 36,267 | ||||||
| Loss on exercise of warrant liabilities | 15,796,105 | - | ||||||
| Changes in fair value of warrant liability | 5,312,838 | - | ||||||
| Changes in operating assets and liabilities net of effects from acquisition of subsidiaries: | ||||||||
| Trade receivables | (1,536,888 | ) | (2,317,074 | ) | ||||
| Trade receivables - related party | 66,057 | (178,980 | ) | |||||
| Inventory | 851,764 | 1,341,472 | ||||||
| Contract assets | (171,413 | ) | (240,478 | ) | ||||
| Prepaid expenses and other current assets | (569,401 | ) | 482,853 | |||||
| Other assets | 173,497 | (225,853 | ) | |||||
| Accounts payable | (518,330 | ) | (455,315 | ) | ||||
| Accounts payable - related party | - | 408 | ||||||
| Sales tax payable | (69,054 | ) | 1,658 | |||||
| Operating lease liabilities | (464,886 | ) | (388,516 | ) | ||||
| Deposits from customers | (225,560 | ) | 150,274 | |||||
| Accrued expenses | 972,123 | (108,311 | ) | |||||
| Contract liabilities | 670,221 | 919,090 | ||||||
| Deferred revenue | (266,217 | ) | (252,109 | ) | ||||
| Income taxes payable | (38,617 | ) | (146,422 | ) | ||||
| Other liabilities | 7,243 | (184,261 | ) | |||||
| Net cash provided/(used) by operating activities | 1,600,616 | (2,752,236 | ) | |||||
| Cash Flows from Investing Activities | ||||||||
| Purchase of property and equipment | (1,359,963 | ) | (355,308 | ) | ||||
| Proceeds from sale of property and equipment | 13,511 | - | ||||||
| Royalties on related party revenues | 10,000 | - | ||||||
| Investment in MasterpieceVR | (100,000 | ) | (100,000 | ) | ||||
| Net cash used by investing activities | (1,436,452 | ) | (455,308 | ) | ||||
| Cash Flows from Financing Activities | ||||||||
| Proceeds on revolving line of credit | 18,925,223 | 19,360,672 | ||||||
| Payments on revolving line of credit | (19,182,809 | ) | (15,413,971 | ) | ||||
| Payments on debt | (240,510 | ) | (2,634,545 | ) | ||||
| Payments on Paycheck Protection Program Loans | (20,247 | ) | (20,242 | ) | ||||
| Proceeds on bank loans | - | 28,331 | ||||||
| Proceeds from notes payable | 500,000 | - | ||||||
| Proceeds from warrant exercises | 1,050,597 | - | ||||||
| Purchases of treasury stock | - | (69,705 | ) | |||||
| Net cash provided by financing activities | 1,032,254 | 1,250,540 | ||||||
| Effect of currency translation | (550,777 | ) | (304,022 | ) | ||||
| Net increase/(decrease) in cash, cash equivalents, and restricted cash | 1,196,418 | (1,957,004 | ) | |||||
| Cash, cash equivalents, and restricted cash at beginning of period | 5,420,392 | 6,349,562 | ||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 6,066,033 | $ | 4,088,536 | ||||
Cemtrex, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Continued)
(Unaudited)
| Balance Sheet Accounts Included in Cash, Cash Equivalents, and Restricted Cash | ||||||||
| Cash and cash equivalents | $ | 4,538,405 | $ | 2,916,120 | ||||
| Restricted cash | 1,527,628 | 1,172,416 | ||||||
| Total cash, cash equivalents, and restricted cash | $ | 6,066,033 | $ | 4,088,536 | ||||
| Supplemental Disclosure of Cash Flow Information: | ||||||||
| Cash paid during the period for interest | $ | 389,840 | $ | 482,865 | ||||
| Cash paid during the period for income taxes, net of refunds | $ | 269,680 | $ | 146,422 | ||||
| Supplemental Schedule of Non-Cash Investing and Financing Activities | ||||||||
| Shares issued to pay for services | $ | - | $ | 40,000 | ||||
| Financing of fixed asset purchase | $ | - | $ | 28,331 | ||||
| Noncash recognition of new leases | $ | 204,726 | $ | - | ||||
| Series A Warrant Exercises | $ | 21,515,777 | $ | - |
