Cemtrex, Inc.

Third-quarter revenue was flat year over year at $14.7 million. Security segment revenue decreased 31% to $6.2 million, while Industrial Services revenue increased 49% to $8.5 million. Gross profit was $5.9 million, or 40% of revenue, versus $6.5 million, or 44% a year ago. Operating loss was $3.2 million versus operating income of $0.1 million last year, and net loss was $9.1 million versus a net loss of $1.2 million. For the nine-month period, operating loss was $5 million versus $1.5 million a year ago, including about $2 million of one-time expenses. Management did not give formal next-quarter or full-year revenue/EPS guidance, but said it remains committed to achieving full-year operating profit, expects Vicon to see strong revenue growth in fiscal 2025, and believes AIS has potential to exceed 30% annual revenue growth in fiscal 2024 with further growth in fiscal 2025.

Saagar Govil framed the quarter as one of mixed segment momentum: AIS continued to build order momentum and Vicon faced project delays, but he said the business is still advancing toward positive operating income. He emphasized cost discipline, inventory reduction of more than $1 million, a fortified balance sheet after the $10 million offering, and a willingness to pursue acquisitions that can expand reach and capabilities. His tone was constructive and forward-looking, with repeated comments about long-term growth and shareholder value.

Paul Wyckoff focused on the quarter’s financial mix and cost pressures. He cited flat revenue of $14.7 million, a gross margin of 40% versus 44% last year, operating expenses of $9.1 million versus $6.4 million, and a $3.2 million operating loss. He also noted cash and cash equivalents plus restricted cash of $7.6 million at June 30, 2024 versus $6.3 million at September 30, 2023, and inventory down to $7.5 million from $8.7 million.

There was effectively no analyst Q&A, as the operator noted the one participant who raised a hand declined and no questions were taken. As a result, management did not have to address follow-up concerns on the project delays, margins, leverage, or the timing of profitability beyond the prepared remarks.