Cemtrex Inc (CETX) 2024 Q3 法說會逐字稿

Greetings. And welcome to the Cemtrex's third Quarter 2024 financial results conference call. (Operator Instructions) As a reminder, this conference is being recorded.

問候。歡迎參加 Cemtrex 2024 年第三季財務業績電話會議。（操作員指示）提醒一下，本次會議正在錄音。

Before we begin the formal presentation, I would like to remind everyone that statements made on the call and webcast may include predictions, estimates, or other information that might be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially.

在我們開始正式演講之前，我想提醒大家，電話會議和網路直播中的陳述可能包括預測、估計或其他可能被視為前瞻性的資訊。雖然這些前瞻性陳述代表了我們目前對未來的判斷，但它們受制於風險和不確定性，可能導致實際結果大不相同。

You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. Throughout today's discussion, we will attempt to present some important factors relating to our business that may affect our predictions.

請注意不要過度依賴這些前瞻性陳述，這些陳述僅反映我們截至本簡報發布之日的觀點。請記住，我們沒有義務根據新資訊或未來事件修改或公開發布這些前瞻性陳述的任何修改結果。在今天的討論中，我們將嘗試提出一些與我們的業務相關的可能影響我們預測的重要因素。

You should also review our most recent Form 10-K and 10-Q for a more complete discussion of these factors and other risks, particularly under the heading Risk Factors. A press release detailing these results was issued this afternoon and is available in the Investor Relations section of our company's website, cemtrex.com.

您還應該查看我們最新的 10-K 和 10-Q 表格，以便更全面地討論這些因素和其他風險，特別是在「風險因素」標題下。今天下午發布了一份詳細介紹這些結果的新聞稿，可在我們公司網站 cemtrex.com 的投資者關係部分查閱。

Your hosts today, Saagar Govil, Chief Executive Officer; and Paul Wyckoff, Chief Financial Officer, will present unaudited results of operations for the fiscal third quarter ended June 30, 2024.

今天的主持人，執行長 Saagar Govil 和財務長 Paul Wyckoff 將公佈截至 2024 年 6 月 30 日的第三財季未經審計的經營業績。

At this time, I will turn the call over to Cemtrex Chief Executive Officer, Saagar Govil.

現在，我將把電話轉給 Cemtrex 執行長 Saagar Govil。

Thank you, Operator. Good afternoon, everyone. I'm pleased to welcome you to today's third quarter 2024 financial results conference call. We continue to see momentum in our segments during the third quarter, sustaining revenue year-over-year at $14.7 million. Significant demand for AIS products and services drove a 49% increase in revenue to $8.5 million, which was offset by decreases in Vicon revenue, primarily due to the delay of multiple projects.

謝謝您，接線生。大家下午好。我很高興歡迎您參加今天的 2024 年第三季財務業績電話會議。第三季度，我們的各部門持續保持強勁發展勢頭，營收與去年同期相比維持在 1,470 萬美元。AIS 產品和服務的大量需求推動收入成長 49%，達到 850 萬美元，但 Vicon 收入的下降抵消了這一增長，這主要是由於多個項目的延遲。

Operating loss for the third quarter was $3.2 million, compared to operating income of $0.1 million a year ago, mainly due to decreased gross profit in our security segment and increased G&A expenses. The operating loss for the nine-month period was $5 million, compared to $1.5 million a year ago, despite the higher sales.

第三季的營業虧損為 320 萬美元，而去年同期的營業收入為 10 萬美元，主要原因是我們安全部門的毛利下降以及 G&A 費用增加。儘管銷售額有所增加，但前九個月的營業虧損仍為 500 萬美元，而去年同期的營業虧損為 150 萬美元。

However, these results include approximately $2 million in one-time expenses related to employee related one-time charges and legal expenses, and some bad debt write-offs. We remain committed to our goal of achieving a full year operating profit and are working hard to drive revenue while maintaining tight cost controls.

然而，這些結果包括與員工相關的一次性費用和法律費用以及一些壞帳註銷有關的約 200 萬美元的一次性費用。我們仍然致力於實現全年營業利潤的目標，並在嚴格控製成本的同時努力增加收入。

In our security segment, despite project delays, the team at Vicon continues to push the deployment of new technologies and products with investments into sales and marketing resources that we believe will drive sales over the next several quarters. We also were able to reduce our inventory by over $1 million this fiscal year as we strive to make our operations more efficient.

在我們的安全領域，儘管專案延遲，Vicon 團隊仍在繼續推動新技術和新產品的部署，並投資於銷售和行銷資源，我們相信這將推動未來幾季的銷售。由於我們努力提高營運效率，本財年我們也成功減少了 100 多萬美元的庫存。

We expect with the launch of the innovative new cloud security platform Anavio, along with new technologies to be release later this year and continued improvements to our core software platform Valerus. We are confident that in fiscal year 2025, Vicon will see strong growth in revenue.

我們期待隨著創新新型雲端安全平台 Anavio 的推出，以及今年稍後發布的新技術，以及我們核心軟體平台 Valerus 的持續改進。我們有信心，2025財年，Vicon的營收將實現強勁成長。

Our industrial services segment delivered another strong quarter on orders from leading companies, building a pipeline of growth that we believe will produce a record year of revenue. We continue to believe with additional orders ahead, AIS has the potential to reach more than 30% annual revenue growth in fiscal year 2024, with further growth in fiscal year 2025.

我們的工業服務部門在領先公司的訂單支援下，又一個季度表現強勁，建立了成長管道，我們相信這將創造創紀錄的年度收入。我們仍然相信，隨著未來訂單的增加，AIS 有可能在 2024 財年實現 30% 以上的年收入成長，並在 2025 財年實現進一步成長。

During the quarter we took the opportunity to improve our balance sheet with a $10 million upsized underwritten public offering, of which a portion of the proceeds were used to pay off some of our indebtedness.

在本季度，我們藉此機會透過 1000 萬美元的增發承銷公開發行來改善我們的資產負債表，其中一部分收益用於償還部分債務。

Looking ahead, we are now well positioned for additional growth and to reach our goal of achieve positive operating income in the future. The strengthened balance sheet also provides the ability to explore acquisition opportunities that can enhance our market reach and service capabilities, as we continue to seek long-term value for our shareholders.

展望未來，我們已做好準備，實現進一步成長，並在未來實現正營業收入的目標。隨著我們繼續為股東尋求長期價值，增強的資產負債表也使我們能夠探索可以增強我們的市場覆蓋範圍和服務能力的收購機會。

I will now turn the call over to Paul Wyckoff our CFOs to discuss the financials.

現在我將把電話轉給我們的財務長保羅‧威科夫 (Paul Wyckoff) 來討論財務問題。

Thank you, Saagar. Revenue for the third quarters of 2024 and 2023 was a flat $14.7 million. The security segment revenues for the third quarter of 2024 decreased by 31% to $6.2 million. The security segment decrease was due to a delay of multiple projects for the segment's services, products and services, and overall economic conditions in the industry.

謝謝你，Saagar。2024 年和 2023 年第三季的營收持平為 1,470 萬美元。2024 年第三季安全部門營收下降 31% 至 620 萬美元。安全部門的下降是由於該部門的服務、產品和服務的多個項目延遲以及行業整體經濟狀況。

The industrial services segment revenues for the quarter increased by 49% to $8.5 million, mainly due to the increased demand for the segment's services, as well as additional revenue due to Heisey acquisition completed during the fourth quarter of fiscal year 2023.

本季工業服務部門營收成長 49% 至 850 萬美元，主要由於該部門服務需求增加，以及 2023 財年第四季完成 Heisey 收購帶來的額外收入。

Gross profit for the third quarter of 2024 was $5.9 million or 40% of revenues, as compared to gross profit of $6.5 million or 44% of revenues for the third quarter of 2023.

2024 年第三季的毛利為 590 萬美元，佔營收的 40%，而 2023 年第三季的毛利為 650 萬美元，佔營收的 44%。

Total operating expenses for the three months into June 30, 2024 were $9.1 million, compared to $6.4 million in the prior year's quarter. Operating loss for the third quarter of 2024 was $3.2 million, as compared to operating income of $0.1 million for the third quarter of 2023. The operating loss was primarily due to the decrease in gross profit in our security segment and overall increase in G&A expenses.

截至 2024 年 6 月 30 日的三個月總營運費用為 910 萬美元，而去年同期為 640 萬美元。2024 年第三季的營業虧損為 320 萬美元，而 2023 年第三季的營業收入為 10 萬美元。營業虧損主要是由於我們安全部門的毛利下降以及一般行政費用整體增加所致。

Net loss for the third quarter of 2024 was $9.1 million, as compared to a net loss of $1.2 million in the third quarter of 2023. Cash and cash equivalents and restricted cash rose $7.6 million on June 30, 2024, as compared to $6.3 million on September 30, 2023. Inventories decreased to $7.5 million at June 30, 2024, from $8.7 million at September 30, 2023.

2024 年第三季淨虧損為 910 萬美元，而 2023 年第三季淨虧損為 120 萬美元。2024 年 6 月 30 日，現金及現金等價物和受限現金增加了 760 萬美元，而 2023 年 9 月 30 日則為 630 萬美元。庫存從 2023 年 9 月 30 日的 870 萬美元減少至 2024 年 6 月 30 日的 750 萬美元。

I will now turn the call back to Saagar for a review of our 2024 outlook.

現在我將把電話轉回給 Saagar，讓他回顧我們 2024 年的展望。

Thank you, Paul. In summary, with a fortified balance sheet from the $10 million upsize offering we closed, we are making steady progress toward our goal of achieving positive operating income in the future.

謝謝你，保羅。總而言之，透過完成 1000 萬美元的增發，我們獲得了更強大的資產負債表，我們正在朝著未來實現正營業收入的目標穩步前進。

On the acquisition front, we are consistently evaluating potential value-add acquisition opportunities that can further accelerate our growth. As we execute on our strategic initiatives while prudently managing our balance sheet, we are well-positioned for long-term growth. We look forward to providing additional updates in the months to come as we work to build long-term value for our shareholders.

在收購方面，我們一直在評估可以進一步加速我們成長的潛在增值收購機會。當我們執行策略性措施並審慎管理資產負債表時，我們已為長期成長做好了準備。我們期待在未來幾個月提供更多更新，致力於為股東創造長期價值。

I thank you all for attending and now would like to answer your questions. Operator?

感謝大家的出席，現在我想回答大家的問題。操作員？

(Operator Instructions)

（操作員指示）

We have one who raised hands, which is Richard Arnold. However, I think the line or it decline from the polling process as of right now.

有一位舉手的人，他就是理查德·阿諾德。然而，我認為從目前的投票過程來看，這項支持率正在下降。

There is no analysts or participants is raising hand for any questions.

沒有分析師或參與者舉手提問。

(Operator Instructions)

（操作員指示）

As there are no further questions at this time. I would now like to turn the call back over to Mr. Saagar Govil for his closing remarks.

目前沒有其他問題。現在我想把電話轉回給薩加爾·戈維爾先生，請他作結束語。

Thank you, operator. I'd like to thank each of you for joining our earnings call today and look forward to continuing to update you on our ongoing progress and growth. If we were unable to answer any questions, please feel to reach out to our IR firm, MZ Group, who would be more than happy to assist. Thanks, everyone. Bye-bye.

謝謝您，接線生。我想感謝大家今天參加我們的財報電話會議，並期待繼續向大家通報我們正在取得的進展和成長情況。如果我們無法回答任何問題，請隨時聯絡我們的 IR 公司 MZ Group，他們會非常樂意為您提供協助。謝謝大家。再見。

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。